View of the Spring Grove condo near Orchard Road. (Photo: Knight Frank)
After a failed attempt at an en bloc sale in 2014, the owners of Spring Grove condominium in Grange Road are once again looking for law firms and a marketing agent that could help them sell the 325-unit estate for at least $1 billion, reported the Straits Times.
Based on a maximum gross floor area of 553,377 sq ft, a $1 billion price tag works out to around $1,807 psf, up from the $1,285 psf to $1,438 psf price that units within the development fetched so far this year.
SEE ALSO: New development charges to affect en bloc deals
The owners attribute their bullish outlook to the estate’s prime location as well as the red-hot collective sale market.
Located near the residential areas of Bishopgate and Chatsworth Road, Spring Grove is also near the Central Business District and Orchard Road.
“We don’t have a price in mind, but it will be a project worth a billion dollars or more,” said Spring Grove sale committee chairman Adrian Loh.
However, the developer of the estate “will have to pay the owners of Spring Grove as well as the US government… to top up the lease”, said Loh.
This comes as the development is built on the site of the previous US diplomatic residence. As such, the land will revert to the US government following the end of the 99-year lease, which to date has 73 years left.
“There are quite a lot of sales en bloc going on now, but not that many are in the prime district, so that’s something going for this development,” said ZACD Group executive director Nicholas Mak.
“But properties where the asking price goes beyond $1 billion are challenging for developers… They do present some financial risk.”
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
