Thursday, September 16, 2010
Breaking: D'Leedon Condo at former Farrer Court launching soon
According to our sources, a new condo is about to be launched at the site of the mother-of-all-en-blocs Farrer Court. Finally! The site of Singapore's largest en bloc sale ever ($1.3 billion back in 2007) has been sitting quietly watching the mayhem and madness of 2008/09 go by. Will this massive condo beat everyone's expectations?
Given the recent cooling measures taken by the Govt recently, we wonder if this is the best time to launch. Perhaps developers and have been encouraged by the take up rate of Pasir Ris' NV Residences, or perhaps they simply could wait no longer.
Anyway, this condo is sitting right outside the soon to be completed Farrer Road Circle Line MRT. Historically, condos near MRTs have been best sellers - just ask developers of Optima and 8@Woodleigh.
The building in the artist's impressions above and below was designed by Zaha Hadid, one of the world's top architects, though it's only a proposal. I guess we'll find out soon enough what the developers have in mind.
History lesson: Farrer Court was sold for $1.3 billion back in 2007. It was a privatised HUDC (owned by STB) sitting on a gigantic 99-year leasehold site of 838,488 sqft, roughly the size of 10 soccer fields. The condo will be 36-storeys high and could yield 1,500 units.
The developers who won the bid came in as a consortium of partners. The consortium known as Morganite Pte Ltd consisted of Capitaland (35%), Ong Beng Seng's Hotel Properties (22.5%), Morgan Stanley's Real Estate Special Situations Fund III (22.5%) and Wachovia (20%). If the last two partners ring a bell, it's because they are the US financial firms that got into a bit of a sticky mess back in 2008. Remember the 'Global Financial Crisis' where you learned new words like 'bailout', 'credit crunch' and 'toxic assets' ?
Anyway, we guess all the partners are back in a stronger financial position since it will take about $3 billion (yes, $3 billion) to build the condo. Which, incidentally, makes it the largest value residential project in Singapore.
So that makes it about $1,350 to $1,450 psf to breakeven. Our pet octopus tells us the the potential selling price would be in the $2,000 psf region.
As posted in h88 by John