Allgreen is top bidder for Handy Rd site

Allgreen is top bidder for Handy Rd site

MAINBOARD-listed Allgreen Properties has emerged top bidder for a 99-year leasehold site in Handy Rd near The Cathay with an offer of $72.3 million or $669 per square foot per plot ratio.

The 38,600 sq ft site, near Dhoby Ghaut MRT Station, is designated for residential use or residential use with first-storey commercial space. It can be developed into a 10-storey project with maximum gross floor area of 108,080 sq ft.

The Urban Redevelopment Authority's tender exercise had attracted four bids when it closed yesterday.

Alliance Development - controlled by Sino Holdings, not linked to property magnate Ng Teng Fong's Far East Organization or Sino Land group - bid almost $70.4 million.

GuocoLand's Rivaldo Investments offered $68.65 million. And Peak Venture, controlled by banker Wee Cho Yaw, tendered $50.5 million.

CB Richard Ellis executive director Li Hiaw Ho estimates Allgreen's breakeven cost for a new project on the site could be around $1,000 psf.

'Going by current prices of units at 8 @ Mount Sophia at above $1,000 psf in the subsale market, and those at the freehold Nomu selling at $1,100-1,300 psf, it is likely that the new project on the Handy Rd site will be able to sell at an average price of around $1,300 psf,' he said.