Each owner could receive between $1.6 million and $1.8 million if the sale goes through. (Photo: Knight Frank)
The huge Normanton Park site located beside Kent Ridge Park has been launched for collective sale for a second time, marketing agent Knight Frank said on Monday (21 August).
Built in 1997 for military personnel and their families, the privatised housing estate comprises 13 blocks of 488 apartments. Unit sizes range from 1,270 sq ft to 1,550 sq ft and the entire site measures approximately 660,999 sq ft.
The owners are expecting offers of above $800 million, which works out to a land rate of about $898 psf per plot ratio.
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The reserve price includes the differential premium of approximately $225.3 million for intensification of the site, as well as the lease top-up of about $220.6 million to a fresh 99 years. As such, each owner could receive between $1.6 million and $1.8 million.
Zoned residential with a gross plot ratio of 2.1 under the Master Plan 2014, the site could be redeveloped up to a maximum permissible gross floor area of 1,388,099 sq ft.
Ian Loh, Knight Frank’s executive director & head of investment and capital markets, noted that there has been a jump in the number of professionals in the area in the last five years. This, coupled with the lack of new high-rise residential projects launched within a 1.5km radius in the last 15 years, has led to low supply.
“The new high-rise development could potentially comprise more than 1,200 new residential units of 100 sq m (1,076 sq ft), and the new homeowners should be able to enjoy lush greenery views and unblocked views of the city and the sea.
“As such, we expect the property to attract strong interest in view of its exclusive location and positive attributes,” said Loh.
SS Chopra, chairman of the sale committee and a retired Navy colonel said: “It took a mere 11 days for us to reach the 80 percent consensus and a further two weeks to launch the tender today.”
“As compared to our en bloc attempt in 2015, the marketing agents this time around are far more bullish. Hence, naturally a combination of all the factors bode well for a successful en bloc sale,” he added.
Normanton Park is close to nature parks, business parks and science parks. There are also various educational institutions in the vicinity including Anglo-Chinese Junior College, the National University of Singapore and Singapore Polytechnic.
The tender exercise will close on 5 October 2017.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories, email firstname.lastname@example.org