Tag Archives: Pearlbank

Pearlbank Apartments sold to CapitaLand for $728m

CapitaLand intends to redevelop the site into a high-rise residential development comprising around 800 units. (Photo: Colliers International)

Pearlbank Apartments, a 37-storey development in Outram, has been sold via private treaty to CapitaLand for $ 728 million, following the close of its collective sale tender on 19 December 2017, revealed marketing agent Colliers International.

The sale price works out to a land cost of around $ 1,515 psf per plot ratio (psf ppr), after taking into account an upgrading premium of around $ 201 million for the lease top-up. No development charge is payable for Pearlbank Apartments.

Featuring a total of 288 units (280 apartments and eight commercial units), the building has a leasehold tenure of 99 years with effect from June 1970.

Colliers revealed that apartment owners stand to gain between $ 1.8 million to $ 4.9 million from the successful sale of the development, while owners of commercial units could receive between $ 1.2 million to $ 6.9 million.

“While residents of Pearlbank Apartments had previously explored the idea to conserve Pearlbank Apartments due to its history and design, recent sentiment has strongly shifted to redevelopment,” said Alex Poh, chairman of Pearlbank Apartments collective sale committee.

“A deeper analysis of the building structure and the required enhancement work show that conservation would be a costly undertaking and a huge burden for the owners. It is not a viable nor favourable option for the residents,” he noted.

“In addition, the redevelopment of the ageing building will also be in line with the ongoing renewal of Outram. The future development will enhance the architectural transformation of the area and the owners strongly support the redevelopment of Pearlbank Apartments.”

CapitaLand intends to redevelop the site into a high-rise residential development comprising around 800 units, subject to certain conditions.

The property developer saw its total profit after tax and minority interest (PATMI) drop 37.8 percent year-on-year to $ 267.7 million in Q4 2017, while revenue fell 34.6 percent to $ 1.2 billion.

For the full-year 2017, total PATMI increased 30.3 percent to $ 1.55 billion from $ 1.2 billion in 2016, “due to higher portfolio and fair value gains from divestments of Innov Tower in China, One George Street and Wilkie Edge in Singapore, as well as serviced residence properties in Germany, China and Japan”, CapitaLand said in a statement.

 

Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

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Pearlbank Apartments tries to en bloc again at $728 million

The 37-storey horse-shoe shaped building comprises 280 apartments and eight commercial units. (Photo: Colliers International)

Pearlbank Apartments in Outram is making its fourth collective sale attempt at a reserve price of $ 728 million, after more than 80 percent of the owners consented to the sale, marketing agent Colliers International said on Monday (30 October).

The price translates to a land cost of about $ 1,505 psf per plot ratio, inclusive of an upgrading premium of $ 195 million for the lease top-up. There is no development charge payable.

Located on Pearl’s Hill next to Outram Park MRT interchange, the 37-storey horseshoe-shaped building comprises 280 apartments and eight commercial units. It sits on an 82,376 sq ft site and has a 99-year lease with effect from June 1970.

The apartment owners, whose unit sizes range from approximately 1,323 sq ft to 3,993 sq ft, stand to get between $ 1.8 million and $ 4.9 million, while the commercial owners could receive $ 1.2 million to $ 6.9 million for their units ranging from 700 sq ft to 5,630 sq ft.

 “We started the signing process on 8 July and have achieved the necessary signatures in under four months, which is significantly faster than our previous rounds,” said Alex Poh, chairman of the collective sale committee.

“The owners understand that it is time to sell given the age of the property and hence have shown great commitment to ensuring a smooth and quick process.”

According to Colliers, the development has a gross plot ratio of 7.2 under the 2014 Master Plan and could be redeveloped into a residential project comprising 730 units with an average size of 800 sq ft, subject to approval from the relevant authorities.

The tender for Pearlbank Apartments is expected to launch in two weeks’ time and will close before the end of the year.

 

Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

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