Published 10 March 2011
The Business Times
By Kalpana Rashiwala
GRAND Tower at Moulmein Rise near Novena MRT station has been put up for collective sale with an indicative guide price of $92 million or about $1,430 per square foot of potential gross floor area. No development charge is payable.
The 21,742 sq ft freehold site can potentially be redeveloped into a high-end boutique development with permissible gross floor area of about 64,310 sq ft, exceeding the 60,878 sq ft based on the 2.8 plot ratio for the site in 2008 Master Plan. No development charge is payable, according to Savills Singapore, which is marketing the collective sale of Grand Tower.
A new project on the site can accommodate about 70 apartments averaging 850 sq ft.
Currently Grand Tower, which is 33 years old, comprises a single tower with 28 apartments of about 1,873 sq ft each. Based on the $92 million guide price, each owner is expected to receive about $3.28 million.
Based on the $1,430 psf per plot ratio unit land price going by the $92 million guide price for the collective sale, the break even cost for a new project could be around $2,000 psf, say analysts.
Recent transactions at nearby L’VIV have been at between $2,043 psf and $2,133 psf, while at the 99-year leasehold Soleil@ Sinaran, deals have been at $1,634-1,743 psf, Savills said.
The tender for Grand Tower closes on April 6.
The Novena area has three malls – Velocity@ Novena Square, Square 2 and United Square – and is shaping up as a medical hub.