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News Release

Singapore

Prime Freehold Katong Redevelopment Site Up For Sale




SINGAPORE, 4 September 2013 – Jones Lang LaSalle is inviting offers for a 22,800 sqft redevelopment site located in Katong, on behalf of a private owner. The freehold site, located at Nos. 12/A/B/C/D Amber Road, is zoned ‘Residential’ under the 2008 Master Plan, and has an allowable Gross Plot Ratio (GPR) of 2.8.

The subject site is located in prime District 15, which is popular amongst both local and foreign well-heeled families. “Steeped in its unique and rich cultural history that dates back to the late 19th century, the Katong area has always been favoured for the seafront lifestyle that it offers. Residents also enjoy easy access to amenities at Marine Parade and Parkway Parade, with Changi Airport and the Central Business District just a short drive away,” said Ms Yong Choon Fah, National Director of Investments at Jones Lang LaSalle.

There are currently several vacant old houses located on site. As this is not a collective sale, Strata Titles Board approval is not required for the purchase. Said Ms Yong: “The successful purchaser can hence take possession of the site upon legal completion, and plan towards marketing or building the project relatively quickly if needed.”

“A developer could look towards building a total gross floor area (GFA) of about 63,800 sqft on this site, and may be able to accommodate up to 80 high-rise apartments, depending on the design and sizes of the proposed residential units. Some of the units could also potentially enjoy partial sea-views.”

She added that with the implementation of the Additional Buyers Stamp Duty (ABSD) and curbs on the Total Debt Servicing Ratio (TDSR), coupled with Qualifying Certificate (QC) requirements imposed on foreign developers, bigger projects are often perceived to be riskier given the longer time needed to complete the designing, marketing and construction.

“Much of the land that was made available in the market largely comprised of Government Land Sale sites, which tend to be large-sized plots located in suburban areas. The sheer size of these plots meant they mainly catered to bigger developers,  thereby forcing smaller developers to either team up to acquire a site, or to sit by the sidelines until a more affordable opportunity arose,” said Ms Yong.

“A redevelopment project of this scale could appeal to smaller or mid-sized developers, given that the total land investment quantum, including development charges, is estimated to be in the region of $100 million or so. A Singaporean developer or purchaser could also choose to acquire this freehold site to add to their land-bank for future development if they have no immediate plans to build.”

Alternatively, the purchaser could also explore the option of developing a block of serviced apartments. “Increasingly, we’ve seen businesses and multi-national companies relocating their operations into areas outside of the Central Business District and into locations such as the Changi Business Park.  With this, a purchaser could capitalise on the strong growth in Singapore’s hospitality market and the lack of quality serviced accommodation in the Eastern part of Singapore that caters to this rising trend,” continued Ms Yong.

With the locations of the new MRT stations under the future Eastern Region Line expected to be announced soon, and the MRT line scheduled for completion in 2020, residents can expect the added convenience of travelling from the east coast to Marina Bay, thereby benefiting those who live and work in the area.

She added: “The owner is expecting offers in excess of $63 million for the property, which translates to a land rate in the region of $1,300 psf ppr. If the developer were to build an additional 10% GFA for balconies, private terraces and other private enclosed spaces, then the same price is expected to reflect an estimated land rate of $1,238 psf ppr.  For a redevelopment up to GPR 2.8, the development charges are estimated to be in the region of $20 million.”

There is a pair of semi-detached houses adjoining the subject site, with a total land area of about 5,617sqft. Thus, according to Ms Yong, there could be potential for the purchaser to explore an acquisition of the two houses as well, for amalgamation and redevelopment with the subject site.

Interested purchasers are invited to submit their offers by 2.30 pm on 2 October 2013.


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Notes to editors

1.    Please contact Vivian Lim at 6494 3824 or vivian.lim@ap.jll.com should you require the high resolution image of the site.


About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $46.3 billion of real estate assets under management.
Jones Lang LaSalle has over 50 years of experience in Asia Pacific, with over 26,100 employees operating in 79 offices in 14 countries across the region. The firm was named ‘Best Property Consultancy’ in nine Asia Pacific countries at the International Property Awards Asia Pacific 2012, in association with HSBC, and was named the number one real estate advisory firm in Asia Pacific in the Euromoney Real Estate Awards 2012. www.ap.joneslanglasalle.com 
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