Singapore-listed Bukit Sembawang Estates paid purchased the 117-unit, 99-year leasehold Katong Park Towers en bloc for $345 million, some 20% above the reserve price of $288 million. At the close of the tender on March 15, a total of 10 bids were received, and were all above the reserve price, says Christine Sim, director of capital markets at Cushman & Wakefield, who brokered the sale.
Bukit Sembawang’s purchase price translates to $1,280 psf per plot ratio after factoring in $60 million lease upgrading premium. Katong Park Tower can be redeveloped into a new residential development with a plot ratio of 2.1 and a maximum building height of 24 storeys. The site is located about 200m from the future Katong Park MRT station and is not affected by the traffic impact study.
“Our planned development is nestled in low-rise landed houses along Meyer and Mountbatten Roads, and will offer rare, unobstructed panoramic views of the city skyline,” says Ng Chee Seng, CEO of Bukit Sembawang Estates.
Aerial view of Katong Park Towers site (demarcated) (Credit: Cushman & Wakefield)
This marks the developer’s first purchase of a collective sale site since 2006-2007, when it purchased several freehold sites including the former Airview Towers and Chez Bright Apartments at St Thomas Walk (to be launched later this year as 8 St Thomas); the former Fairways Condo (since redeveloped into Skyline Residences) for $244.3 million; and The Vermont on Peck Hay Road (redeveloped and fully sold as The Vermont on Cairnhill).
Meanwhile, the owners of the 111 apartments at Katong Park Towers can expect gross proceeds between $2.25 million and $3.23 million, and the five penthouse owners can expect to walk away with $4.95 million to $12.08 million.
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