Katong Park Towers sold to Bukit Sembawang for $345 million
The sale price is about 20 percent above the reserve price of $288 million. (Photo: Cushman & Wakefield)
Katong Park Towers in District 15 has been sold to a subsidiary of Bukit Sembawang Estates for $345 million, about 20 percent above the reserve price of $288 million, said Cushman & Wakefield who brokered the deal.
Located at 114A Arthur Road, the site is close to East Coast Park and the future Katong Park MRT station on the Thomson-East Coast Line.
More: Katong Park Towers launched for collective sale
In a statement, Cushman & Wakefield said a total of 10 bids were submitted during the tender exercise, and all were above the reserve price.
However, the sale is still subject to approval from the Strata Titles Board.
Completed in 1988, the 99-year leasehold development comprises 111 apartments, five penthouses and two commercial units. It sits on a land area of 140,758 sq ft.
The sale price works out to a land rate of $1,280 psf per plot ratio up to the development baseline, taking into account an estimated $60 million for topping up the lease.
The owners will receive proceeds ranging from $2.25 million to $3.23 million for the typical units, while the penthouses could fetch between $4.95 million and $12.08 million.
“These premiums are fairly substantial compared to units which were sold individually in the open market,” said Christina Sim, director of capital markets at Cushman & Wakefield.
According to the 2014 Master Plan, the site is zoned for residential use with a plot ratio of 2.1 and a maximum building height of up to 24 storeys.
“We see good potential in this site because it is well-connected to the future Katong Park MRT station,” said Ng Chee Seng, CEO of Bukit Sembawang Estates.
“With Katong’s rich heritage and rejuvenation initiatives under the Kallang Masterplan, we are confident that this will be another quality development added to our portfolio.”
Bukit Sembawang recently launched Phase 1 of its Nim Collection landed development off Ang Mo Kio Avenue 5.
Of the 26 units released to buyers, three were sold at a median price of $1,661 psf, or a quantum of $2.8 million to $3 million, said Colliers International.
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Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
