Oxley buys Mayfair Gardens for $311 million

cecilia.chow@bizedge.com
Mayfair Gardens

Mayfair Gardens contains 124 units of walk-up apartments and sits on a 208,475 sq ft site with a 99-year lease from 1983 (Picture Credit: Knight Frank)

 

Oxley Holdings announced on Nov 17 that it has purchased Mayfair Gardens along Rifle Range Road, just off Dunearn Road, for $311 million. This represents a 17.4% premium over Mayfair Gardens’ reserve price of $265 million.

According to marketing agent Knight Frank, the sale price works out to $1,244 psf per plot ratio, after factoring in an estimated lease top-up premium of $52 million for a fresh 99-year lease. The existing site has a 99-year lease starting from 1983.

If the sale is successful, each owner is expected to walk away with $1.7 million to $2.89 million each, says Knight Frank. The existing Mayfair Gardens development consists of 124 apartments sized between 1,076 sq ft and 2,153 sq ft in six residential walk-up blocks.

Mayfair Gardens sits on a 208,475 sq ft site located within walking distance of King Albert Park MRT station. Under the 2014 Master Plan, the site is zoned ‘Residential’ with a gross plot ratio of 1.4. This works out to be a maximum permissible gross floor area of 291,865 sq ft.

“The new project could potentially house 387 residential units, assuming each unit measures 753 sq ft on average,” says Ian Loh, executive director and head of investment and capital markets at Knight Frank. Based on Oxley’s purchase price of $311 million, Loh estimates the breakeven price for the new development to be $1,780 psf.

According to Knight Frank, more than 80% of owners consented to the collective sale in less than a month. At the close of tender, owners of 105 out of 124 units, representing 84.33% of the total strata area and 84.58% of total share value at Mayfair Gardens, consented to the collective sale, the agent adds.

Mayfair Gardens is located within a 1km radius of Methodist Girls’ School and Pei Hwa Presbyterian Primary School. The public tender for Mayfair Gardens was launched on Oct 23 and closed on Nov 16.

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