Business

Leonie Gardens up for collective sale at $800m again

Leonie Gardens joins a growing list of sellers trying their luck at a collective sale in the new year.

The prime District 9 condo on Leonie Hill, whose collective sales agreement expires in May, relaunched its tender for a second time at the same reserve price of $800 million last month. The tender closes on Jan 22 at 3 pm.

The 138-unit condo first launched for sale in May last year, and that tender had closed without a bid on June 21.

"We held off relaunching until December because of a lack of interest after the July 6 cooling measures. But since then, developers have had time to see how the new launches fared and how prices are holding up," Mr Vijay Chopra, chairman of the Leonie Gardens collective sale committee, said.

Asked why the 99-year leasehold condo was re-launched at the same price, Mr Vijay said: "The owners are willing to accept a lower price but we don't know what that price should be. We don't want to go through the process of lowering the reserve price without knowing first what the developers are willing to offer."

At the guide price of $800 million, each owner stands to get between $4.3 million and $10.2 million.

The reserve price translates to $2,104 per square foot based on existing gross floor area, or $2,021 per square foot per plot ratio if a 10 per cent balcony space is included, subject to approval.

Leonie Gardens has 70 plus years remaining on its lease, according to marketing agent Huttons Asia. The project sits on a total strata area of 324,972.90 sq ft and a gross floor area of 410,431.80 sq ft.

As the site is located within the Central Area, it is not subject to an average unit size of 85 sq m, which will allow the developer to build smaller units and keep the quantum palatable for potential buyers.

Huttons said it can be developed into 544 condominium units of about 70 sq m each, or 380 condominium units of about 100 sq m each. - THE STRAITS TIMES

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