Freehold mixed-use development Novena Ville has been sold to the Fragrance Group for $131.52 million in a collective sale on Thursday.
This works out to $1,839 per square foot per plot ratio (psf ppr). After including the additional 10 per cent allowance for the balcony space of the residential component, the price actually reflects a land rate of about $1,730 psf ppr, reported The Business Times (BT).
33 apartments and 10 shop units make up the 51,092 sq ft site, which is zoned "residential with commercial at first storey".
Apartment owners stand to receive about between $2.1 million and $2.7 million from the gross sales proceeds, while shop owners can expect between $4.8 million and $6.3 million, reported BT.
Some well-known restaurants are located there, including Wee Nam Kee Chicken Rice shop and The Vines Seafood and Steak Restaurant.
With the announcement of the sale, tenants are now mainly concerned about what the sale will mean for their shops.
The Straits Times (ST) reported that tenants such as Penang Road Cafe owner Mr Alan Lim, 53, and his wife, Madam Agatha Chan are resigned to the sale and the possibility that they may have to vacate the premises where they are operating their business.
Fragrance Group has not yet announced any plans for redevelopment. No development charge is payable fr the site's redevelopment.
ST reported that the collective sale generated about 30 to 40 per cent profit above current market prices for both shop and apartment owners, according to the chairman of the sale committee for Novena Ville Mr Kelvin Ho.
When the tender was launched in April 26 this year, the owners' asking price ranged from between $125 to $135 million. Four parties had submitted very competitive bids by the time the tender closed on May 24, according to Tan Hong Boon, deputy managing director at Credo Real Estate, the marketing agent who handled the sale.
More than 80 per cent of owners had signed the collective sale agreement to sell the property.