Lee Tat Development has sold a 207,000 square feet plot for $158 million, making it one of the largest freehold condo site deals in the last 12 months.
The said plot, which is located at the end of Lengkong Tujoh and Jalan Senang, was purchased through a joint venture transaction with Hoi Hup and Malaysia’s Sunway group.
The selling price works out to around $445 per square foot (psf) of potential gross floor area, including the estimated development charge worth $36 million.
The site is zoned for residential units with a 2:1 plot ratio and a 12-storey maximum height under Master Plan 2008.
The sale, brokered by Credo Real Estate, was done through a private treaty deal.
“According to our records, this sale could mark the first large-scale freehold condominium site sold in almost two years, that is, since the tail-end of the active en bloc sale market of 2007,” said Karamjit Singh, managing director of Credo.
“Transactions of large private residential redevelopment sites belonging to a single owner are very rare,” he added.
The last known deal involving such a large scale site was the sale of the 115,303 sq ft plot of No. 97 Meyer Road, which was sold for nearly $201 million by Della Lee to Hong Leong Group in 2007.
Meanwhile, the buyer of the Jalan Senang plot is planning to build a condo with about 400 to 500 total units.
“At their purchase price, their break-even is expected to be around $800 psf, while they could expect to sell at about $900 psf on average,” explained Mr. Singh.
Hoi Hup’s spokesperson said that the proposed condo will have mostly two-bedroom apartments and two-bedroom- plus-study units.
“Studios will form only about 10 percent of units. We’ll also have three-bedroom apartments. Jalan Senang is a family-type area and the development will be more suitable for upgraders, rather than investors,” according to the spokesperson.
The construction of the proposed condo is expected to be done in the next six to nine months.