Source : The Business Times
June 18, 2007
SC Global clinches coveted site for $262m or $2,337 psf ppr
(SINGAPORE) A new record unit land price has been set for residential land in Singapore, toppling the benchmark established just last week. SC Global Developments has bought The Ardmore, with a 42,565-square-foot land area, for $262 million or $2,337 per sq foot (psf) of potential gross floor area including development charges.
This overtakes the $1,788 psf per plot ratio set for Char Yong Gardens in the Cairnhill location last week.
Both sites are freehold.
SC Global said yesterday that following the acquisition of The Ardmore, it will have a land bank of nearly one million sq ft of developable area on prime freehold land in the Orchard Road area. 'We have to date spent about $1 billion to acquire our prime land bank which carries an average land cost of just over $1,000 psf per plot ratio,' the group said yesterday.
Market watchers reckon that SC Global's breakeven cost for a new condo development on The Ardmore site could be around $3,000 psf. 'I guess they could be looking at selling the project at around $3,500 psf on an average basis, although with their brand name in the luxury sector, SC Global should be able to achieve even higher prices,' according to an analyst.
Simon Cheong, who is SC Global's chairman and CEO, said of The Ardmore: 'This freehold site is not only the last available site at Ardmore Park, it also has the distinctive characteristics we have been looking for to create our next premium signature development.'
Knight Frank, which brokered the sale of The Ardmore, said the tender for the collective sale drew six established property developers listed on the Singapore Exchange when it closed on June 12. 'The bids received were very close and were within a narrow price range,' it added.
The property is possibly the last plot with an Ardmore Park address available for redevelopment, it said. However, market watchers note that at least one major collective sale is brewing in the prestigious location - that of The Claymore.
The Ardmore's collective sale is subject to approval from the Strata Titles Board.
On average, owners of The Ardmore's existing 24 units will pocket nearly $11 million each, although BT understands the actual sum that owners will receive will vary widely, depending on the size of their units. There are three sizes of apartments in the development.
