CapitaLand is considered as one of the Asia’s topnotch and largest real estate property companies along with its portfolio of $78 billion.
The famous CapitaLand was bought with a price of $728 million by Pearl Bank Apartments, ranking the fourth luckiest to own horseshoe-shaped condominium right at the Outram Park.
The 288 apartments owners whose areas are 1,323 sq ft to 3,993 sq ft have the privilege to be paid from $4.9 million to $1.8 million straight from the collective sale of the private treaty. Whereas, eight commercial properties having areas of 700 sq ft to 5,630 sq ft deserves a pay of $6.9 million down to $1.2 million, told by Marketing agent of Colliers International
The real estate industry claimed that CapitaLand’s sale broke the record of being the first ever residential property acquisition after its ownership of the areas for Government Land sales way back June 2013 of Bukit Timah, the place for the development of the booming Victoria Park Villas.
The Pearl bank transaction took place during wee hours of the previous day and considered not a single man effort, said Lim Ming Yan, the group chief executive and CapitaLand President.
It is one of the group aims to strengthen the decreasing local’s pipeline despite an upswing over local residential property market, he further added.
CapitaLand’s proposal for Pearl Bank Apartments went in sync with the price set by owners themselves. This covers a land price area of $1,515 per sq ft (psf ppr) or per plot ratio, following the factoring about $201.4 million over a freehold of 99 -year tenure.
The site can be converted into a condominium project of at least 800 units but still subject to approval. The land ownership is expected for its full completion between months of July to August, and the incoming project is ready for its launching by the first half of 2018.
” This is not the-top kind of price of the property and we are not paying for it,” Ronald Tay, CEO to the CapitaLand Singapore shared to the reporters during the group’s annual earnings meeting.”
“That is the reason why we did not join the original tender. During that time, the concept was that when somebody joins the bidding then it will result in $1,600 to $1,700 (psf ppr). The equation sounds no sense for us,’ he explained. ” Given we have this kind of market, the equal price we discussed, decent revenues or gains margin are to be set.”
The targeted area which is yet for pre-application feasibility analysis for traffic concerns has covered an area of 82,376 sq ft. Having the current plot ratio which is 7.45, there is a big tendency for a redevelopment of the area into residential development which will occupy more or less 82,376 sq ft of the total floor area.
It is just adjacent to Chinatown and steps away from MRT Station of Outram and the two main expressways.
The Outram region is also planned to be converted into a healthcare, research, and wellness centre under a redevelopment plan of 20 -years by SingHealth, a healthcare group.
A break-even amount of $2,000 to $2,250 psf, and the median market price more or less $2,400 to $2,600 psf were the expectations of the consultants.
” I believed such is a better investment and will catch many buyers if being launched,” told by Edmund Tie & Company, Head of Research, Mr lee Nai Jia. ” From mere assumptions, we discovered a number of buyers ages 30 and up buying homes in the major areas near to Central Business District and the said buyers have the passion for intense cultural identity.”
The project “One Pearl Bank” is expected for its completion by 2026, succeeding the initial public opening of Thomson-East Coast Line, which is known as the third MRT station around Outram area which permits an easy access to Orchard, Marina and Shenton Way.