Margate Point launched for sale in maiden collective sale attempt
SINGAPORE, 2 May 2018 – The majority owners at Margate Point, a 15-unit apartment development at Margate Road, have collectively put their property up for sale by tender in their maiden en bloc attempt. JLL has been appointed by the owners to market the property.
Located off Meyer Road and Mountbatten Road, Margate Point has a land area of about 12,800 sq ft and is zoned Residential with an allowable gross plot ratio (GPR) of 2.1 under the 2014 Master Plan. Subject to design and approval from the relevant authorities, the site may be redeveloped into a maximum of 35 apartments with an average size of 70 sqm per unit.
"Margate Road happens to be the dividing line that segregates the high-rise residential zone from the safeguarded 2-storey landed estate. When redeveloped, the new high-rise development at Margate Point's site would stand to enjoy excellent, unobstructed views across the vast Meyer Road and Goodman Road landed zones, until the low-rise residential areas in Joo Chiat. The stunning views, combined with its central Katong location and its close proximity to a future MRT station, would be sought-after selling points," says Mr Karamjit Singh, senior consultant at JLL.
This part of District 15 has been a traditional favourite amongst many well-heeled families and investors due to its proximity to the Central Business District, Changi Airport and the beach. With the new Thomson-East Coast Line underway, the plan to upgrade East Coast Park into a key leisure destination, and with the developments at Changi Airport's Terminal 5 taking shape, this whole location can expect new vibrancy and asset appreciation.
Mr Singh says, "This current collective sale cycle has performed quite differently from the previous cycle, where the average transacted value per site has increased. Many mega-sized projects have been launched and sold over the past year, with more of such mega-sites in the process of garnering their requisite consent levels."
Some 24 collective sale sites have been sold within the first four months of 2018 at an average deal size of approx. $338 million per transaction. Last year in 2017, 32 sites were sold at an average of $275 million per transaction. During the previous peak of the collective sale cycle in 2007, the average deal size was only about $131 million.
"Margate Point's minimum expected price of $38 million offers boutique developers and contractors an attractive and affordable redevelopment proposition, particularly if they have found themselves priced out of the market due to the high investment quantum needed for the larger private and government sites. Further, this property may also appeal to institutional investors or families looking to acquire a complete residential development to hold as a long-term investment to hedge against the rising property prices in this area. The existing typical apartment size of 1,280 sq ft makes it quite rentable."
"Subject to confirmation on the property's development baseline, Margate Point's reserve price translates to a land rate of approx. $1,417 per sq ft per plot ratio (psf ppr) for a redevelopment up to GPR 2.1, i.e. before any bonus gross floor area for balconies, which is reasonable in view of the transacted prices and asking prices of other land parcels in the vicinity."
"There is a high chance of getting 100% consent from the owners towards this collective sale. At the moment, owners representing 14 out of 15 of the apartments have already inked their consent to the collective sale. Should the last unit's consent be obtained, the owners can then bypass the Strata Titles Board application process and work towards legal completion taking place within three months of contract," says Mr Singh.
The tender for Margate Point closes on 6 June 2018 at 2.30pm.
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Note to editors:
- High-resolution photograph of Margate Point is available here.
JLL (NYSE: JLL) is a leading professional services firm that specialises in real estate and investment management. A Fortune 500 company, JLL helps real estate owners, occupiers and investors achieve their business ambitions. In 2017, JLL had revenue of $7.9 billion; managed 4.6 billion square feet, or 423 million square meters; and completed investment sales, acquisitions and finance transactions of approximately $170 billion. At the end of 2017, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of 82,000. As of December 31, 2017, LaSalle had $58.1 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.
JLL has over 50 years of experience in Asia Pacific, with over 37,000 employees operating in 96 offices in 16 countries across the region. The firm won 23 awards at the International Property Awards Asia Pacific in 2017 and was named number one real estate investment advisory firm in Asia Pacific for the seventh consecutive year by Real Capital Analytics. www.ap.jll.com.