Residential buildings in Orchard sold for $190.5m

THREE prime residential buildings near Orchard Road have been sold to three developers for a combined price of $190.5 million.

The tenders for the freehold properties at 3 Cuscaden Walk, 120 Grange Road and 8 Hullet Road were launched simultaneously last month with a total guide price of $185 million.

Tenders closed on Nov 2.

The Cuscaden Walk property, sold for $103.8 million to SL Capital (2), a consortium led by Sustained Land, has a land area of 21,560 sq ft and is zoned "residential".

A subsidiary of Roxy-Pacific Holdings bought the Grange Road development for $48.5 million. It comprises an 11-storey block of 18 flats on a land area of 15,780 sq ft.

The Hullet Road property, with a land area of 10,733 sq ft, went to Hullet Development, a consortium led by Patrick Kho of Lian Huat Group, for $38.2 million.

Built in the early 2000s, it comprises a 10-storey block of 18 apartments.

Jeremy Lake, executive director of investment properties at CBRE Singapore, said Hullet Development intends to build a high-end project - given the location of the property, which is in the heart of Orchard Road.

"Sentiment towards the prime residential market has improved since the middle of the year and some developers have been asking if there are sites for sale.

"These three sites are very well located which, combined with their palatable deal sizes, resulted in a very competitive bidding process," he noted.

Karamjit Singh, international director and head of residential at JLL, said the properties attracted interest from a wide variety of parties including long-term investors and those looking to build serviced apartments.

The sales "reflect an underlying confidence in the stability of the high-end residential market which, prior to this year, saw a steady decline in values over the preceding four years".

This article was first published on Nov 25, 2016.
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