News: Two projects seek to revive en bloc attempt at lower prices

Jan 30, 2019

Aerial view of the Gilstead Court residential development in District 11. (Photo: JLL)

Gilstead Court, a residential development at the Novena-Newton area in District 11, has been relaunched for collective sale via tender at a potentially lower reserve price, revealed marketing agent JLL on Tuesday (29 Jan).

The project’s Collective Sale Committee (CSC) has proposed slashing the reserve price to $153 million from $168 million previously, given the new property cooling measures.

More: Forget About Billion-Dollar En Bloc Sales, Say Experts

Although the Urban Redevelopment Authority’s higher average unit size for non-landed homes outside Singapore’s central region also impacts Gilstead Court, the Land Transport Authority (LTA) doesn’t require a Pre-Application Feasibility Study (PAFS) on traffic impact for the site’s redevelopment.

However, the lower reserve price requires the approval of at least 80 percent of the development’s owners in terms of overall share value and total floor area. JLL revealed that at press time, over 60 percent of the owners have signed the supplemental agreement to reduce the reserve price to $153 million.

Completed in 1978, Gilstead Court consists of 48 apartments spread across three four-storey apartment blocks. Half of the units measure 1388.54 sq ft (129 sq m), while the remaining 24 apartments have a larger built-up area of 1,463.89 sq ft (136 sq m).

If the lower price is approved, the revised land rate works out to around $1,448 psf per plot ratio (psf ppr), or $1,353 psf ppr inclusive of the 7.0 percent bonus balcony plot ratio. Subject to approval, the winning developer may potentially configure the allowable gross floor area to 113,067 sq ft and build 98 apartments with a minimum size of 100 sq m.

Aside from being near amenities like the world-class medical facility Health City Novena, the development is within 1km of St Joseph’s Primary Institution (Junior), Anglo-Chinese School (Junior), and Anglo-Chinese School (Baker).

Located just 250m from Novena MRT station, the development is just two stops from Orchard and three stops to the Botanic Gardens. By car, Marina Bay and Raffles Place are just a 15-minute drive.

“Gilstead Court, with its prestigious address, freehold tenure and proximity to three very popular primary schools, stands out amidst the many collective sale sites that are presently being marketed,” said JLL’s Executive Director Tan Hong Boon.

“We expect good interest for this site due to the reasonable pricing and the recent strong interest received for the nearby Kampong Java GLS site with seven bidders. With no development charge payable, it is insulated from the half-yearly development charge rate revisions by the Chief Valuer, with the next review expected on 1 March 2019,” added. Tan.

Meanwhile, marketing agent SLP International revealed that the 120-unit Lakeside Apartments in Yuan Ching Road in District 22 will be relaunched for collective sale on 30 January.

Its CSC has also proposed to cut the reserve price from $240 million to $205 million. At present, 70 percent of the owners have consented to reducing the price, shy of the 80 percent required.

Situated within the Jurong Lake District, the 99-year leasehold development with a land area of 12,465 sq m is close to Lakeside MRT station and offers panoramic views of Jurong Lake.

The tender exercises for Gilstead Court and Lakeside Apartments will both close on 27 February.

More: Understanding The En Bloc Process (August 2018)

 

Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

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Clement Chew
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PROPNEX REALTY PTE LTD
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