Green Lodge sold for $191.888 million

Green Lodge sold for $191.888 million

In the largest freehold residential collective sale so far this year, Green Lodge at Toh Tuck Road has been sold for $191.888 million.

Some market watchers believe the buyer could comprise a consortium of investors while others suggest the buyer, or one of the buyers, could be a property player better known as a construction group and industrial property developer.

Green Lodge, located off Jalan Jurong Kechil in Upper Bukit Timah vicinity, has a land area of 151,075 sq ft. Under Master Plan 2008, the site can be developed into a five-storey condominium at 1.4 plot ratio (ratio of maximum gross floor area to land area).

The $191.888 million price for Green Lodge works out to $907 per square foot per plot ratio (psf ppr), based on the 1.4 plot ratio.

However, Green Lodge has an approved density of equivalent plot ratio 1.4896 (based on a slighter larger original land area) - translating to a lower unit land price of $833 psf ppr. This would allow about 8.9 per cent balcony space on which no development charge (DC) is payable to the state.

However, should the developer decide to tap the maximum 10 per cent balcony allowance, an estimated DC of $827,000 would be payable, resulting in an all-in unit land price at around $828 psf ppr.

Based on this, the breakeven cost for a new condo development would be around $1,100 psf.
Green Lodge has 80 residential units ranging from 1,679 sq ft to 2,056 sq ft. Their owners will receive sums ranging from $2.3 million to $2.6 million per unit - about 50 to 60 per cent higher than what they could have fetched if they had sold their units individually.

Green Lodge is on elevated grounds in a quiet neighbourhood within 1 km of the popular Pei Hwa Presbyterian Primary School. It is also about 800 metres from the future Beauty World MRT Station on the Downtown Line.

Green Lodge is being sold following the third tender closing for the site on Aug 8. The earlier two tenders closed in December last year and in May this year.

Source: Business Times – 18 September 2012