PINETREE Condominium in Balmoral Park has been put up for sale by tender with an indicative price of $140 million to $150 million.

PINETREE Condominium in Balmoral Park has been put up for sale by tender with an indicative price of $140 million to $150 million.

The freehold residential redevelopment site in district 10, which is about 12 years old, was put up for sale through an expression-of-interest exercise in April last year.

The indicative price then was about $59 million. This represents an increase in price by about 11/2 times.

More than 80 per cent of the owners have now agreed to the collective sale.

The block is being marketed by Jones Lang LaSalle, whose regional director and head of investments Lui Seng Fatt said: ‘There have not been many collective sale sites in the exclusive Balmoral Park area and with the recent hike in development charge, Pinetree Condominium, which has no development charge, will be an attractive site for developers to consider.’

Mr Lui said there would be no development charge payable as the current gross floor area is maximised.

Based on a sale at $140 million, the 41,361-square-foot property, which can have an estimated gross floor area of up to 66,178 square feet, will cost about $2,100 per square foot per plot ratio (psf ppr).

Mr Lui added that the site can be combined with the adjoining landed properties to form a total potential land area of approximately 68,633 sq ft, which would yield a total combined gross floor area of 109,800 sq ft.

Based on this size, a developer could build a new development consisting of 70 to 80 luxury apartment units. Mr Lui estimates a break-even price of about $3,100 psf.

Some benchmark prices in the same area include those of The Solitaire, which has had a few transactions done above $2,200 psf, and Orange Grove Residences, which had transactions ranging from $2,100 to $2,350 psf.

Source : Business Times - 11 Sept 2007