Monday, October 24, 2011

Koh Brothers' $163m tops bids for Flora Drive site

KOH Brothers Group beat out seven other bidders with its top offer for a residential site at Flora Drive, in the Upper Changi area, at the close of the state tender yesterday.

The company offered $163 million or $361 per square foot per plot ratio (psf ppr) for the 99-year leasehold land parcel.

Koh Brothers managing director Francis Koh said that if his company is awarded the site, it will build a residential project with 'green' and 'sporty' elements and around 400-410
 apartments.

Koh Brothers' bid was 10 per cent above the second highest offer, which was from Hong Leong Group unit Tripartite Developers. Tripartite bid $147.6
 million or $327 psf ppr.

The location has a high expatriate tenant pool comprising Japanese and other nationalities working in Changi Business Park, Changi Industrial Park and Changi International Airport
The positive response to (yesterday's) tender follows the encouraging September sales data announced on Monday, which could have influenced tender participation as well a pricing for the site.

Some 1,631 private homes were sold by developers in September - a 21 per cent pick-up from August sales - suggesting firm underlying demand especially for mass market units. The bidders are obviously confident that demand can be sustained and would not be too dampened by the uncertain economic outlook.

Within the neighbourhood, units in freehold The Gale and Ferraria Park were sold at $900-1
,050 psf in August and September 2011. Units in the 99-year leasehold Hedges Park condominium have been marketed at $800-950 psf since April 2011; to date, about 65 per cent of the 501-unit project has been sold.

Source: Business Times – 21 October 2011

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