Two deals with a combined value of $676.5 million were announced in May in yet another sign of the continued resurgence in the collective sale market. One involved the sale of Rio Casa, a privatised HUDC estate in Hougang, while mixed-use development Goh & Goh Building, near Beauty World MRT station, was also snapped up. These follow the sale of One Tree Hill Gardens for $65 million to Lum Chang Group this month. The number of deals has now matched the three done in all of last year: Shunfu Ville, Raintree Gardens and Harbour View Gardens.
Rio Casa in Hougang Avenue 7 was sold for $575 million to the joint venture firm Oxley-Lian Beng Venture comprising KSH Development, Oxley Holdings, Lian Beng Group and Apricot Capital. A further $208 million in estimated differential premiums is required for topping up the lease and to develop the site to a gross plot ratio of 2.8. The combined sale price and differential payment translates to a land price of about $706 per sq ft per plot ratio based on the maximum permissible gross floor area of about 1.1 million sq ft. Rio Casa comprises seven blocks of 286 apartment and maisonette units. Each owner stands to pocket about $2 million from the deal.
The gross development value for this project is estimated at $1.4 billion and can potentially be redeveloped to build about 1,400 residential units, assuming an average size of 70 sq m per unit.
B. Goh & Goh Building
Alika Properties of BBR Holdings bought the Goh & Goh Building for $101.5 million. Built in the late 1980s, the freehold property at 110 to 122 Upper Bukit Timah Road comprises seven apartments and seven shops. Each shop owner will reap about $9 million while apartment owners will get $5.4 million each. Subject to Alika’s payment of a development charge, the site can potentially yield about 100 residential units and a level of retail shops on the ground floor.