For the owners of the 488-unit Normanton Park, the second attempt at a collective sale was a charm. At the close of the tender on Oct 5, Chinese developer Kingsford Development emerged the successful buyer for the site with a purchase price of $830.1 million.

The price includes the differential premium of $231.1 million for the lease to be topped-up to a fresh 99 years and $283.4 million differential premium to redevelop the site to a gross plot ratio of 2.1. Based on the maximum gross floor area of 1.388 million sq ft, the land price translates to $969 psf per plot ratio (ppr), which is the highest price achieved for a 99-year leasehold collective sale site in 2017.

If a 10% bonus balcony space and proposed plot ratio of 2.31 is approved, the land price will be lowered to $923 psf ppr. According to Ian Loh, Knight Frank head of investment & capital markets, the developer could build a new high-rise residential project with more than 1,200 units, assuming an average unit size of about 1,000 sq ft.

Source: Knight Frank

The owners of Normanton Park stand a chance to walk away with $1.68 million to $1.86 million each if the sale is successful.

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