The Riverwalk

A prime commercial site and two residential sites have been put up for sale, the property firms marketing the sites said yesterday.

The Riverwalk, a commercial site in the heart of the central business district (CBD), is up for collective sale by expressions of interest, and market watchers estimate that the property could fetch about $700 million.

The price works out to about $1,900 per square foot per plot ratio (psf ppr), inclusive of the cost of topping up the lease on the site from its present 72 years to 99 years (estimated at $69 million-$70 million) as well as a development charge (DC) of about $1.2 million.

The 82,300-sq-ft site has a maximum plot ratio of 4.9 - giving it a maximum gross floor area of about 403,400 sq ft.

Right now, The Riverwalk consists of 181 commercial units and 118 apartments. Jones Lang LaSalle (JLL), which is marketing the site, said owners with a total 60-70 per cent of share value have agreed to the collective sale.

Under the rules, the property cannot be sold unless at least 80 per cent of owners agree to collective sale.

‘Coupled with the soaring property market and shortage in office space, The Riverwalk is definitely a rare gem in the CBD,’ said Lui Seng Fatt, regional director at JLL.

The expression of interest exercise will close at 3pm on July 26.

The 74-unit Rivershire on Leonie Hill Road is also up for sale - for the second time. Property firm Knight Frank expects that the property will fetch about $348 million, or $2,200 psf ppr. There is no DC payable.

The 56,400-sq-ft site was previously put on the market through an expression of interest exercise in April, where it was expected to fetch about $237 million - a land value of $1,500 psf ppr. But the asking price was not met. In addition, Knight Frank did not have the required 80 per cent owner consent then, the firm said.

This time around, with the continued upturn in the property market and the 80 per cent-owner consent to the sale secured, Knight Frank is confident of getting the asking price.

Rivershire has a 2.8 plot ratio and a height control of 36 storeys. The successful developer would be able to build an estimated 88 units averaging 1,800 sq ft each.

‘The strong take-up rates for high-end condominiums in the vicinity such as The Trillium, Tribeca and St Thomas Suites should increase the site’s attractiveness to developers,’ said Knight Frank. The tender will close at 3pm on July 24.

And a bit further away from the centre of town, Rich East Garden, a 40-unit development at Upper East Coast Road, has also been released for sale by tender.

The indicative price for the site is $92 million-$95 million, which translates to a land rate of about $630-$650 psf ppr, including an estimated DC of $330,000.

The site has a land area of close to 105,000 sq ft and a 1.4 plot ratio, giving it a gross floor area of 147,000 sq ft. ‘The site may be configured into approximately 83 apartment units with an average size of 1,200 sq ft, depending on layout and configuration,’ said Karamjit Singh, managing director of Credo Real Estate, which is marketing the property. The tender closes at 2.30pm on July 31.

Source: The Business Times, 26 June 2007