Grand Tower sold for S$88.5 million

27MR Pte Ltd bought the development which comprises of 28 apartments with an area of about 1,873 sq ft each.

Savills Singapore is pleased to announce the sale of Grand Tower to 27MR Pte Ltd for S$88.5 million. The buyer is 27MR Pte Ltd, a wholly owned subsidiary of New Century Real Estate.

The District 11 freehold development has a site area of 21,742 sq ft. The site can potentially accommodate a new high rise residential development with a maximum permissible Gross Floor Area of approximately 64,310 sq ft, exceeding the permissible plot ratio of 2.8 under the 2008 Master Plan.

Based on the sale price of $88.5 million and at the equivalent plot ratio of 2.958, the sale reflects a land rate of $1,376 psf ppr. No development charge is payable. The existing development comprises 28 apartments with an area of about 1,873 sq ft each. Each owner can potentially receive approximately $3.16 million or $1,688 psf on strata area. This is higher than the $1,000 to $1,100 psf if the apartments were to be sold individually in the secondary market.

The site can potentially be redeveloped into a boutique residential development comprising more than 70 apartments averaging 800 sq ft each. The breakeven cost is estimated between $1,900 to $2,000 psf.

“Grand Tower which lies in the heart of Novena, is an undiscovered gem given its unobstructed views and close proximity to the MRT station as well as 3 popular malls,” said Suzie Mok, Senior Director of Investment Sales at Savills Singapore who is handling the sale.

She added, “Novena is rapidly transforming itself into a distinctive medical hub and popular high-end residential enclave. With the completion of the premier Parkway Novena Hospital next year, capital values in the locale are expected to receive a boost”.

The sale is subject to Strata Titles Board approval.

Grand Tower is Savills’ fourth collective sale for the year following Newton View at $147.6 million in March, Amber Towers at $161.6 million in April and Balmoral Condominium at $141 million in June.