Singapore's largest private residential site - Braddell View - will be launched for collective sale by public tender on March 27 at a reserve price of $2.08 billion, with residential owners standing to receive between $2 million and $4 million each, marketing agent Colliers International said on Tuesday (March 19).
This comes after 80% of the owners, by both share value and strata area, agreed to put the development on the market. The reserve price works out to a land rate of $1,199 per square foot per plot ratio, inclusive of the differential premium to intensify land use, and to top up the lease to a fresh 99 years which is estimated at $795.1 million. The tender will close at 3 pm on May 28.
Braddell View's land area is 1.14 million sqft, and the site has a 102-year leasehold tenure from Feb 1, 1978, which translates to a balance lease term of about 61 years. The redevelopment site comprises two separate land lots, one that is about 618,221 sqft and another that is about 524,055 sqft, Colliers said. The development in Braddell Hill is the largest of the 18 Housing and Urban Development Company (HUDC) estates in Singapore. It has 918 residential units and two commercial units. The residential units comprise 824 apartments, 78 maisonettes and 16 penthouses.
The sizes of the residential units at Braddell View range between 1,453 sqft and 3,369 sqft (about 135 sqm and 313 sqm). Depending on the size of their property, owners of the residential units stand to receive between $2.04 million and $4.03 million each upon successful sale of the development, Colliers said. Meanwhile, owners of the commercial shops, which span 194 sqft and 517 sqft (18 sqm and 48 sqm), could receive between $529,500 and $1.2 million respectively.
Tang Wei Leng, managing director at Colliers International, said: "Given that this is a sizeable development, it is likely to see interest coming from a consortium of developers. We expect interested parties to conduct extensive due diligence on the site and will do our best to gather as much information to help prospective tenderers assess the merits of the plot, as well as minimize potential risks and lower the level of uncertainty. In the coming weeks, we will be engaging the authorities to seek more clarity on traffic impact study, the feasibility of a phased redevelopment of the site, and even explore the possibility of selling the site as two separate plots."
Separately, Alex Teo, chairman of the Braddell View collective sale committee, said: "Having acquired the 80% consensus to take the collective sale process forward is a key milestone in our en bloc sale journey. We started the signing process a year ago, and we knew then that it would not be an easy task given the large number of owners in the estate. I am heartened that owners have been open-minded, engaged and committed throughout the entire signing process, cognisant of the fact that the estate is aging and in need of rejuvenation."
Under the Urban Redevelopment Authority's Master Plan 2014, the site is zoned for residential use. It has a gross plot ratio of 2.1 and will have a proposed total gross floor area of about 2.4 million sqft.
The development, which was completed around 1981, was the last HUDC estate to be privatised. Its privatisation in March 2017 marked the closure of the Government's privatisation programme for HUDC estates. Colliers estimates that up to 2,620 new residential units with an average size of about 915 sqft could be built on the site, subject to approval from the relevant authorities.
Adapted from The Straits Times, Mar 19, 2019.