Knight Frank is pleased to announce that Normanton Park, a 488-unit development located off Ayer Rajah Expressway, has been sold collectively to Kingsford Huray Development Pte Ltd for S$830.1 million – making it the highest land rate (psf ppr) for a 99-year leasehold collective sale site this year.
The sale price, with an additional lease top-up premium estimated at S$231.1 million payable to the state to top up the lease to a fresh 99 years, and differential premium of approximately S$283.4 million to redevelop the site to a gross plot ratio (GPR) of 2.1 based on the maximum permissible Gross Floor Area (GFA) of approximately 1,388,099 sq ft, translates to a land price of approximately S$969 per square foot per plot ratio (psf ppr). With the inclusion of a 10% bonus balcony and a proposed plot ratio of 2.31 (2.1 + 10% balcony), the land price works out to approximately S$923 psf ppr, subject to the authorities’ approval.
Over 80% of the owners consented to the en bloc sale within a short 11-days from the first signature. A public tender was then launched on 22 August 2017 and closed on 5 Oct 2017. Currently, 87.3% of the owners have consented to the sale.
Each owner will stand to receive a gross sale price of approximately S$1.68 million to S$1.86 million upon a successful sale, to several conditions being met, including an order of sale by the Strata Titles Board or High Court.
Normanton Park comprises 13 residential blocks of 488 apartment units with a site area of 61,408.9 sq m (approximately 660,999 sq ft).
The site is a private enclave located along Normanton Park, close to nature parks with unblocked views to the vast landscape of Singapore, as well as partial sea views. Normanton Park was originally built in the mid-1970s for the Singapore Armed Forces.
Mr. Sukhvinder S Chopra, Chairman of the Sale Committee and a retired Colonel from the Navy (SAF), comments, “The sale committee received several submissions and worked very closely with the marketing agent and lawyers. We deliberated all the submissions carefully and the decision to award to Kingsford was unanimous. The sale committee was formed on 29 July, and it took us a mere 10- weeks to conclude the sale. We could not have done it without the support of the majority of owners. The sale committee thanks them as well.”
Mr. Ian Loh, Executive Director and Head of Investment & Capital Markets at Knight Frank, said, “The gross development value for this project is estimated at S$2.23 billion. The new high-rise development could potentially house more than 1,200 new residential units of 100 sq m on the site, and new homeowners can potentially enjoy lush greenery views and unblocked views to the city.”
Earlier in May 2017, Knight Frank sold two collective sale sites: One Tree Hill Gardens, a rare landed residential redevelopment site located in the vicinity of Orchard Road, for $$65 million, as well as, Rio Casa, a privatised HUDC along Hougang Avenue 7, for S$575 million.