A total of 38 units at The Draycott apartment (pictured) are up for sale by expression of interest (EOI), according to marketing agent JLL.
The 133-unit freehold development in the Ardmore Park/Claymore district has potential for en bloc sale. The portfolio for sale represents around 31 percent by share value and strata area of the whole development.
The total strata area of the portfolio is about 104,429 sq ft. This includes 30 units within one column in the tower block facing Goodwood Hill, a vast area of lush trees and colonial houses.
Built in the 1980s, The Draycott is one of the few remaining projects in the area, while others such as Pin Tjoe Court, Westwood Apartments and Ardmore Point have since been redeveloped after going en bloc between 2006 and 2007.
“En bloc sales happen in cycles,” said Karamjit Singh, Head of Investments & Residential at JLL. “The market is experiencing a low point now, with the cumulative weight of the suppressive measures at its peak, especially with foreigners needing to pay 18 percent stamp duty. As a result, prices of high-end homes in and around Orchard Road have eased as much as 15 to 25 percent from the high in 2007. From here on, we believe that things can only get better, especially with the assessment of policy risks turning from negative to positive.”
The portfolio has been valued by an independent valuer at $1,900 psf over the strata area, which translates to an absolute price of $198 million. This offers a discount when compared with individual sales of other projects in the vicinity.
Over at nearby Ardmore Park, three units were sold at an average of $3,490 psf in the second half of 2013. Meanwhile, a low floor unit at Four Seasons Park was recently transacted at $2,323 psf.
According to JLL, an investor who pays for example $200 million for this development would indirectly be buying into the redevelopment potential of the land at the rate of around $1,790 psf ppr.
The EOI exercise will close on 29 April.
Muneerah Bee, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
Related Stories:
Cooling measures force investors to look further afield
Crowdfunding expo for Singapore