Tai Keng Court fetches more than asking price

Tai Keng Court fetches more than asking price

The owners of Tai Keng Court have defied the subdued collective sale market by selling their mixed-use estate for about 25 per cent more than they asked for.

They will get $161.1 million for the freehold plot at the junction of Jalan Lokam and Upper Paya Lebar Road, which works out to $1,109 per sq ft (psf) per plot ratio (ppr).

Flat owners can expect to receive gross proceeds of about $1.89 million - around 50 per cent more than if they had sold their units individually. Shop owners will reap between $2.19 million and $2.55 million.

The complex has 56 apartments and 24 shops in three blocks.

The $161.1 million bid is the highest unit price achieved in at least four collective sales struck this year and largest total quantum. The previous high for the year was the $96.2 million for Seletar Garden.

The Straits Times understands that about five bidders took part in the tender, with most offering more than the $130 million asking price.

A joint venture between Fragrance Group, with a 60 per cent share, and Aspial Corp topped the tender.

Experts said developers lost interest in collective sales on the back of a new rule that requires them to build and sell all units in a project within five years of acquiring the site or pay a 10 per cent additional stamp duty.

But the popularity of mixed-use projects such as Bedok Residences, Sengkang Grand Residences in Buangkok, Watertown in Punggol and The Hillier in Upper Bukit Timah that have hit the market recently meant Tai Keng Court stood a good chance of attracting buyer interest.

The estate also had a freehold tenure, unlike recent mixed-development launches, most of which had 99-year leases.

Developers are aware of the rarity of such sites. This is especially so as Tai Keng Court, built in the early 1970s, sits on a large freehold site with a commercial component, which has great convenience and frontage, and is long due for redevelopment.

The 103,798 sq ft site is zoned residential and commercial and has a gross plot ratio of up to 1.4. Up to 40 per cent of its potential gross floor area of 145,317 sq ft can be used for commercial space. It can be built up to five storeys.

Source: The Straits Times – 23 March 2012