Ravi Chandran
Peak Court, a 35-year-old freehold residential development at Thompson Road, joins the thriving collective sales fray after it was sold en bloc to Rich Capital Holdings and Tuan Sing Holdings for a hefty $118.88 million, above its asking price of $106 million. The property, which sits on 57,378 sq ft of land, has a gross plot ratio of 1.4 and was sold for about S$1,558 per sq ft per plot ratio.
The residential site which presently houses a four storey block comprising of 20 maisonette units is set to be transformed into 106 units of one, two and three-bedroom apartments. These units will overlook a two-storey landed enclave.
The executive director of Rich Capital, the group that holds a 30 per cent stake in the project, revealed that this is their first acquisition of such kind in the thriving collective sales mrket. The officer, Kelvin Soong, said: “This acquisition marks our maiden foray into the Singapore residential property sector and our first en bloc purchase, as we seek to establish our new identity as a property developer.”
Soong, who spoke on behalf of his firm which was formerly known as Infinio Group, pointed out that the Thomson area and its amenities are highly sought after especially in the thriving collective sales environment: “The Thomson area is sought after for its proximity to highly popular schools, Orchard Road and the central business district and we believe that there is good upside for redeveloped properties in this vicinity.”
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Tuan Sing holds 70 per cent stake in the Peak Court development. Joint venture company TRSC Novena will conduct the acquisition while a combination of internal resources and bank borrowings will be tapped on to fund the project.
Chief mortgage officer of icompareloan.com, Paul Ho, said that it was no surprise that a property in Thomson clinched a purchase in a thriving collective sales market.
“Developers with considerations for margins may continue to bid for “expensive locations” such as Bukit Timah, Sixth Avenue, River Valley, Newton, Thomson, Tanglin Road, etc. The traditional District 9, 10, 11 and the District 15 and Care central regions, may also be on some developers’ radars,” Mr Ho said.
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Adding: “If a developer bids for $1500 to $1800 psf ppr in a prime district, the estimated break even would be around $2000 to $2300., but the developer is likely to call for $2500 to $2800 psf ppr selling price.”
When developers acquire “expensive locations”, they may also spend more on construction to throw in the “thrills and frills” – to make the project an iconic project to command the top end of the premium price. The margins will likely be better as well as these areas have the brand premium to command the price premium.
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