Residential

EL Development launches DBSS project Trivelis with high indicative pricing

888-unit Trivelis, developed under the Design, Build and Sell Scheme (DBSS) at Clementi Ave 4, consists of three 40-storey towers with three-room to five-room flats, with more than 50 % being four-room flats. Prices of three-room flats (646 sqft), four-room units (861 sqft to 883 sqft) and five-room flats (1,130 sqft) will range from $375,000 to $470,000, $530,000 to $650,000 and$658,000 to $770,000 respectively. This is higher than the price of resale flats, and rather close to executive condominium (EC) prices. This may be due to its location (proximity to MRT station and schools), its height, the lack of competitors in the area and the high demand in the HDB market.

99-year leasehold Yishun EC site draws $213.8m top bid.

MCC Land (Singapore) offered a top bid of $213.78 million or $292.57psfppr for the 292,277.6 sqft site with a 730,693.9 sqftgross floor area (GFA) and a 2.5maximum permissible gross plot ratio at Yishun Avenue 7/ Canberra Drive, beating out seven other bids. Just 4% above the $281 psfpprfor The Canopy EC site located at Yishun Avenue 11, the bid was reasonable and within market expectations. Breakeven cost is estimated to be around $600 psf, similar to the prices for The Canopy.

Commercial

JLL’s study: Property investors turn their attention to the industrial sector

Jones Lang LaSalle’s study of URA Realis caveats data shows that investors with an under-$1.5 million budget have turned their attention to industrial sector. The private residential sector’s share of caveats fellfrom 96.6% in Q2 2009 to 87.2% in Q3 2011 while the caveats of strata private industrial units, strata offices and strata retailincreased from 2.2% to 8.8%, 0.4% to 1.4% and 0.8%to 2.6% respectively. The increase may be even larger if the size of the units is included in the data. This increase is due to government measures to cool the housing market as well as the higher yields for industrial property. In particular, the investors are drawn to smaller units in industrial projects with affordable prices and promises of high yields.

Two 999-year leasehold adjacent buildings at Phillip Street sold to Royal Group.

Royal Grouphas bought two 999-year leaseholds adjacent office blocks at 1 and 3 Phillip Street for nearly $283 million with an average price about $2,350 psfbased on their total net lettable area of about 120,000 sq ft. 1 and 3 Phillip Street are a 16-storey building with 36,194 sqft net lettable area (NLA) and a19-storey office block with 82,160 sqft NLA respectively. The new corporate headquarters for Royal Group will move to the latter, moving out from the Royal Brothers Building, where Royal Group’s 50% share of the total net lettable area of around 59,000 sqft was sold at a price of $3,050 psf. The two adjacent blocks at Phillip Street are likely to be redevelopedinto a single project with a larger floor plate.

In the market: Freehold 21-storey Robinson Point

An expressions of interest (EOI) exercise is being conducted for the freehold 14-year old 21-storeyRobinson Point with a total net lettable area (NLA) of 133,214 sqft. Having been redeveloped to its maximum potential, it has a gross floor area of 169,250 sqft, a plot ratio of 11.2 on the 15,111 sqftland area. It is 95% occupied and has 57 car park lots on the third to fifth levels. The price is expected to range around of $306.4 million to $313.1 million. The asset could either remain in its present form or be strata-titled or converted to hotel use, subject to approvals from the authorities.The EOI will close on Nov 18.

Ex-Ogilvy Centre to becomeSofitel Singapore in early 2013

The first Sofitel hotel in Singapore is set to open in early 2013with 135 rooms and suites wherethe Ogilvy Centre used to be- a landmark conservation property opposite Lau Pa Sat. The existing four-storey conservation building will stay, with the rear part being redeveloped into a new five-storey extension. The room sizes will range from 258 to 1,507 sqft, with a 70:30 ratio of suites (including loft suites) to regular rooms with a blended average daily room rate of $300. Royal Group Holdings invested $130 million in the asset, including the $86 million it paid for the site and signed a 20-years management contract with Sofitel Luxury Hotels under the Accor Group.

50% of Robinson Land sold to an offshore fund

The partnership between Buxani Group and offshore investors advised by Capital Management Group sold a half-stake in Robinson Land Pte Ltd to an offshore fund controlled by a few high net worth individuals , retaining the other half. It has only one asset under its name – 12-storey freehold Finexis Buildingat 108 Robinson Road. The sale was based on the Finexis Building’s latest valuation of $110 million, about $2,043 per square foot on its total strata area of 53,830 sq ft.It is more than 82%occupied and does not have any immediate redevelopment potential, its gross floor area of 64,766 sqfthaving exceeded the 11.2 maximum plot ratio for the site. The net yield based on the $110 million valuation is around 2.9% if the building is fully occupied, given the average monthly passing rental of $5.60 psf.

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