Olina Lodge, Verdun House up for collective sale for S$220m, S$60m respectively

OWNERS of Olina Lodge, a freehold project in prime district 10, hope that third time’s the charm for their collective sale attempts and have launched their properties for en bloc sale – this time with a reserve price of S$220 million.

This translates to a land rate of S$1,631 per square foot per plot ratio (psf ppr), said sole marketing agent Singapore Realtors Inc (SRI).

If the developer chooses to build additional 10 per cent gross floor area (GFA) for balconies, the land rate could be potentially pared down further to slightly below S$1,500 psf ppr.

There is potentially no development charge payable for redevelopment up to gross plot ratio of 1.6 due to a high development baseline for the 7,830.7 sq m freehold site.

 SRI noted that the land rate is attractive when compared to recent collective sale transactions within District 10, which includes Hollandia at S$1,703 psf ppr, Toho Mansion at S$1,805 psf ppr, Crystal Tower at S$1,840 psf ppr, City Towers at S$1,847 psf ppr and Royalville at S$1,960 psf ppr, inclusive of the 10 per cent bonus GFA for balconies.

The successful bidder could build an upscale 12-storey, 128-unit development with an average unit size of 1,000 sq ft, subject to approval from authorities.

SRI managing director Tony Koe said that he is confident that the tender will attract keen interest from developers that have not had their fill of land, and potential new players in the Singapore residential market.

Separately, SRI is also marketing the collective sale of Verdun House, a commercial zoned site that now houses a mixed development of four shops and 12 apartments.

Owners at Verdun House are asking for S$60 million, which translates to S$2,100 psf ppr. They are seeking clarification from the authorities on the development baseline of their development.

“The majority owners of Verdun House holding 80 per cent by share value and strata area had agreed to the collective sale in one sitting, immediately right after their extraordinary general meeting when they approved the collective sale agreement,” said SRI head of investment sales Andy Gan.

“It is highly uncommon and challenging for a mixed development to get the majority 80 per cent owners’ consensus, due to the difference in use types,” Mr Gan said. “While there are usually challenges in the method of apportionment in most instances for mixed development, the environment was very cordial during the signing stage for Verdun House. This shows how ready and cohesive the owners were to do a collective sale.”

The new development on the 7,316 sq ft site could accommodate a fully commercial project with a GFA of about 30,728 sq ft. It can be configured into 50 commercial units with an average size of 550 sq ft each, subject to approval from authorities.

The project is opposite Mustafa Centre, about 100 m from City Square Mall, and within walking distance to Farrer Park MRT station on the Northeast Line.

The tenders for Verdun House and Olina Lodge close on April 18 and April 19 respectively, SRI said.

Adapted from : The Business Times; 21 March 2018