Sutton Place launches $285 mil freehold collective sale bid
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Sutton Place’s owners Sutton Place, an apartment development with 44 units located at 24and 26 and 28 Farrer Road, have launched an auction for the collective sale of the development’s freehold. The property is expected to fetch an estimate of $285 million. this sale is promoted by Colliers.
Set in the heart of District 10, Sutton Place is a residential development with five floors that comprises 44 units. Sutton Place is located over an elevated, 93,183 sq feet area. It is a site is zoned residential and has an allowed total plot area ratio of 1.6 according to the most recent Master Plan.
According to Colliers The site has a baseline for development of 130,201 square feet, roughly the 87% of the permitted GFA. (GFA) that will protect any increases in development cost rates for potential developers.
“Based on the estimated price of S$285 million, and an development fee of around $20,886,880, this could translate to an average land value of $2,052 per square foot for each plot ratio, also known as ppr.” states Tang Wei Leng, managing director and head of capital markets and investment services in Singapore for Colliers.
She says she believes that the prospective owner can develop the site into a residential 162-unit development with the minimum unit size being 915 square feet. Colliers has confirmed that an application feasibility study prior to the submission of a proposal does not have to be done by LTA in the event that the site is developed into a 162-unit project.
“In addition to seven% extra GFA as part of the Balcony Incentive Scheme for prospective developers can boost the GFA up to around 159,531 sq feet. After adding the development fee of $32.4 million, which will increase the overall GFA The land cost will further be reduced to $1,990 psf per acre,” says Tang.
Sutton Place is close to the renowned Holland Village neighbourhood and is also surrounded by other top residential developments within the Farrer Road region along with a variety of good Class Bungalow Zones.
Schools in the area are Nanyang Primary School, Raffles Girls’ Primary School, Hwa Chong Institution, and National Junior College. In addition, there are amenities in the vicinity of Holland Village and Dempsey Hill. Farrer Road MRT Station in the Circle Line and the Ayer-Rajah Expressway connects other areas of Singapore.
Sutton Place is close to many new projects within the region that are being developed as the result of a group sale. The road that runs across of Sutton Place is the former Tulip Garden, for which Colliers brokered the deal at $906.8 million in the year 2018. The garden is currently being transformed to become Leedon Green.
The close-by Hyll situated on Holland is an expansion of the earlier Hollandia and Estoril properties, which were bought for $183 million and $224 million in 2018 in addition to Sutton Place is the former The Wilshire which was sold for $98.8 million in 2018.
The tender for the collective sale of Sutton Place will close on September 15.