$332.7m top bid for Alexandra View site

PHOTO: $332.7m top bid for Alexandra View site

SINGAPORE - A choice residential site at popular Alexandra View has drawn a top bid of $332.7 million in a six-cornered contest.

The top bid from Singland Homes was at the high end of market expectations but the overall level of interest was not quite as strong as some had anticipated.

Singland Homes' bid works out to about $970 psf per plot ratio (ppr) for the 0.65 ha land parcel, which is 99-year leasehold.

The tender closed yesterday.

It was 10.9 per cent more than the second highest bid of nearly $300.1 million or about $875 psf ppr, which was a joint bid from Far East Orchard and Frasers Centrepoint's FCL Topaz.

Singland Homes' bid came in just above the upper end of the $820 to $960 psf ppr range predicted by most analysts when the site was triggered for release from the Government's reserve list in October.

It was only marginally higher than the top bid of $960 psf ppr in September for a site at Prince Charles Crescent near the Chatsworth Park good class bungalow area.

Still, Mr Lee Sze Teck, Dennis Wee Group's senior manager of training, research and consultancy, said yesterday that the top bid for the Alexandra View land plot "can be considered a good price".

He noted that it is closer to the Redhill MRT station than the Prince Charles site is.

The price did not reach the $1,000 psf level predicted by Mr Eugene Lim, ERA Realty Network's key executive officer, in October.

Mr Lim had pointed to the fact that the Alexandra View site was superior to the Prince Charles site as it was nearer the MRT.

He had also noted that the Alexandra site had a higher plot ratio than the Prince Charles site, which meant its developer could build a high-rise development with units enjoying unblocked views of its surroundings.

The number of bids for the site was also at the lower end of the scale.

Analysts had earlier expected six to 15 bids.

With a gross floor area of around 342,900 sq ft, the plot is expected to yield some 375 units.

Mr Lee said the break-even price could be between $1,400 and $1,450 psf and the selling price could range from $1,600 to $1,650 psf.

Units at the nearby Ascentia Sky, a 45-storey condominium, are selling at above $1,600 psf in the sub-sale market.

SLP International research head Nicholas Mak yesterday said a launch price above $1,550 psf would set a new record for this area.

The results of yesterday's tender could also lead to one to two more development sites in the Redhill area being offered in the upcoming Government Land Sales programme, Mr Mak said.

The other four bids for the site were more cautious, ranging from $282.2 million by Chip Eng Seng's CEL Property to $268 million by Mezzo Development.

Land parcels in the Alexandra area have been in demand recently.

Apart from the Prince Charles site, another at Alexandra Road was sold last December to a consortium made up of City Developments (CDL) unit Sunmaster Holdings, Hong Leong Group's Intrepid Investments and Hong Realty's Garden Estates.

The CDL consortium won the Alexandra Road site, next to Ascentia Sky, with a top bid of $754 psf ppr.

It is developing the Echelon, a 43-storey condo with 508 units, on this site.

It is expected to be launched later this year or early next year.

The consortium was among the six bidders for the Alexandra View land parcel yesterday, with an offer of $271 million or $790 psf ppr.