The group of UOL Group, United Industrial Corporation (UIC), and Kheng Leong Company (KLC) won the tender for residential site Silat Avenue, as a sole bidder, at a price of $1.035 billion or $1,138 psf per plot ratio (ppr) on 26th April 2018.
A joint venture company will be incorporated to undertake the proposed acquisition and development of the Site. UOL will take 50%, UIC will take 30%, whilst KLC will hold 20%.
The absence of other major developers in the Silat Avenue tender is also indicative that their attention had been diverted elsewhere, namely to the Holland Road GLS site, says Sim. At the close of the Holland Road GLS residential-and-commercial site a month ago, 15 bids were received, with many major developers submitting multiple bids.
The government land site at Silat Avenue, is located just off Kampong Bahru Road, and has the potential to yield an estimated 1,125 residential units. “Developers tend to be cautious when it comes to bidding for sites with more than 1,000 residential units,” notes some industry experts. According to the announcement, the 99-year leasehold site has a total site area of 245,972 sqft and a gross plot ratio of 3.7. It is currently used for residential and commercial purposes with conservation of five existing buildings.
As the industry experts noted, it’s not just the huge capital outlay for the Silat Avenue site, but the presence of five existing conserved buildings on the site that have to be retained and restored. This, in turn, could pose some constraints. The site can be used for residential and commercial purposes.
Based on this bid of $1,138 psf ppr, Market Analysts estimated a breakeven of $1,600 psf ppr, and selling price of the new project, Avenue South Residence, to be in the range of $1,800 to $1,900 psf.
Land bid Cost for Silat Avenue land parcel: $1,138 psf ppr
Estimated Breakeven for South Avenue Residences developments: $1,600 psf
Estimated Launch for South Avenue Residences psf: $1,800 to $1,900 psf
(All prices for Avenue South Residence displayed here are estimated and for reference purposes. Prices are subject to change from time to time without prior notice. This webpage cannot be held responsible for any inaccuracies, omissions and/or dispute.)
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