Pearl Bank Apartments aims to sell for $728m
Four condos put up in separate tenders for collective sale
Iconic condominium Pearl Bank Apartments is among four residential developments put up in separate tenders for collective sale yesterday.
Its reserve price is $728 million.
The other three are Parkway Mansion in Katong, Derby Court near Novena and Riviera Point along River Valley Road.
Pearl Bank, a horseshoe-shaped development in Outram sited near the central business district, is 37 storeys high.
With its reserve price, the land cost amounts to about $1,505 per square foot (psf) per plot ratio (ppr), after factoring in about $195 million for the lease top-up.
The building, with a 99-year lease that began in June 1970, has 288 units, including eight commercial units.
Its gross plot ratio is 7.4479.
Meanwhile, Parkway Mansion, a 32-unit condominium, has an indicative price of $138 million. This excludes an estimated development charge of $21 million, which has to be paid to the Government for more intense use of the land.
The combined sum translates to a land rate of $1,454 psf ppr.
"This compares favourably against the land rate of $1,515 psf per plot ratio for Amber Park," said its marketing agent Colliers International, which is also doing the launch of Pearl Bank.
Pearl Bank is making a fourth attempt, after failing in 2007, 2008 and 2011.
Colliers said the site has the potential for a residential development with a total gross floor area of 56,998.8 sq m, comprising 730 new homes with an average size of 800 sq ft.
But this is subject to approval from the authorities.
Owners of apartments, with sizes ranging from 123 sq m to 371 sq m, could receive minimum gross prices of between $1.8 million and $4.9 million.
These prices are about 55 per cent above the last transacted price in September this year for an individual flat, Colliers said.
Owners of commercial units, with sizes ranging from 65 sq m to 523 sq m, could collect between $1.2 million and $6.9 million, it added.
Parkway Mansion, a 17-storey freehold building, is making a third bid at a collective sale.
If successful, each owner could receive between $4.2 million and $4.4 million in gross proceeds, depending on the size of their homes, Colliers said.
Collier's managing director Tang Wei Leng is optimistic about the collective sales.
He said: "Sentiment in the residential market has improved following a down cycle that spanned four years. This year, new home sales have been brisk and prices picked up in third quarter, possibly marking a positive turn in the market."
Derby Court, a 20-unit block near Novena, has a reserve price of $62 million while Riviera Point, with 33 homes, has set its reserve price at $75 million.
The tenders for all four developments will close this month.