CapitaLand buys Pearlbank Apartments in Outram for $728m

It will be developed into a high rise residential complex comprising around 800 units.

CapitaLand acquired the Pearlbank Apartments in Outram for $728m, through a private treaty collective sale.

The 37-storey development is comprised of 288 units (280 apartments and eight commercial units). It has a land area of 7,653 square metre and 99-year leasehold tenure with effect from June 1970.

CapitaLand plans to redevelop the site into a high rise residential development comprising around 800 units.

Meanwhile, apartment owners whose unit sizes range from 123 square metre to 371 square metre will receive between $1.8m and $4.9 million, whilst owners of commercial units with sizes ranging from 65 square metre to 523 square metre will potentially receive between $1.2m and $6.9m.

“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. 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,” said Alex Poh, chairman of Pearlbank Apartments collective sale committee.

“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,” he added.

Meanwhile, future apartments in development could be sold at an average price of $2,600 per square foot or around $2.5m, said Tang Wei Leng, managing director at Colliers International.