SINGAPORE (THE BUSINESS TIMES) - Three adjoining freehold redevelopment sites near the Botanic Gardens have fetched $53.9 million in a collective sale to Hillcrest Investments, an affiliate of Indonesian billionaire Sukanto Tanoto's pulp, paper and palm oil giant Royal Golden Eagle (RGE).
Comprising a total of eight walk-up apartments and four ground-floor shops, the property is located at 551 to 553 Bukit Timah Road and 6 to 8 Duke's Road, and also includes a driveway. They span a total land area of 16,479 sq ft.
The deal price works out to a land rate of about $1,504 per sq ft per plot ratio, inclusive of a development charge at the gross plot ratio of 3.0, assuming 60 per cent of the gross floor area is for residential use and 40 per cent for commercial use, said JLL executive director Tan Hong Boon.
JLL, as the marketing agent, said in a press statement on Wednesday (Dec 15) that the collective sale tender closed last week with "good interest", given the lowered reserve price for this second exercise. There were three formal submissions received at the close of the tender.
The property was first put on the market in January this year with a guide price of $62.5 million. It was relaunched in October with a reduced price tag of $53.8 million.
The buyer Hillcrest invests in properties with the potential for redevelopment. Singapore-based RGE produces natural fibres, edible oils, green packaging and natural gas.
RGE president Tey Wei Lin said the District 10 property "offers strong redevelopment potential", given its location along Bukit Timah Road with access to Coronation Plaza, Botanic Gardens and educational institutions.
In 2018, RGE also purchased Chinatown Plaza via a collective sale for $260 million. The freehold site along Craig Road is now being developed into Mondrian Singapore, a luxury hotel that will combine historic architecture from Singapore's centuries-old shophouses with contemporary influences, Mr Tey said. He added that Mondrian Singapore is set to open in early 2023.
As for the Bukit Timah sites, they are zoned for residential and commercial use under the Urban Redevelopment Authority's Master Plan 2019, with an allowable height of up to five storeys.
Amenities such as supermarkets and eateries are easily accessible, as King's Arcade, Crown Centre, Serene Centre and Cluny Court are nearby.
Within 1km are popular schools such as Nanyang Primary School, Raffles Girls' Primary School and St Margaret's Secondary School.
All 13 owners have agreed to the deal, which means no Strata Titles Boards application for a sale order is needed.