Jones Lang LaSalle is understood to have brokered the sale following a tender exercise that closed in September.
The 39,972 sq ft site is zoned for residential use with a 2.8 plot ratio – the ratio of maximum potential gross floor area to land area – under Master Plan 2008. There is a 10-storey height limit. The plot can be developed into a new project with about 110 units of an average size of 1,000 sq ft.
Analysts estimate that based on the unit land price of almost $1,100 psf per plot ratio (psf ppr), Heeton’s breakeven cost for a new apartment development could be about $1,600 psf.
The Mitre Hotel, which opened in 1948, stopped letting rooms when it lost its licence in 2002, according to earlier media reports.
The property – which is owned mostly by members of the Chiam family – was ordered to be put up for sale last year by the Court of Appeal, ending a 12-year legal tussle over its sale.
Market watchers said the last time the property was in the market was in August 2007 when it had a price tag of about $200 million or close to $1,800 psf ppr including an estimated $700,000 DC at the time.
Analysts also observe that the latest price of almost $1,100 psf ppr achieved for the property is a slight improvement on the $1,022 psf ppr (including DC) that Hoi Hup paid for the Killiney Apartments plot nearby in April 2007. Hoi Hup is now redeveloping that site into the Residences @ Killiney.
Heeton yesterday reported a 143 per cent year- on-year jump in net earnings for the nine months ended Sept 30, 2009 to $10.5 million.
The company is seeking shareholders’ approval for the disposal of five wet-market properties in Singapore to supermarket chain Sheng Siong.
Source: Business Times, 12 Nov 2009
No comments:
Post a Comment