Far East Consortium bags The Estoril for $223.9m

The Estoril, a freehold development in Holland Road, has been sold en bloc for $223.9 million to Hong Kong-listed Far East Consortium’s unit FEC Properties.

This works out to a land rate of $1,654 per square foot per plot ratio (psf ppr). Inclusive of the 10 per cent bonus balcony gross floor area (GFA), the land rate works out to a lower $1,504 psf ppr. No development charge is payable even after factoring this bonus area, due to the high baseline for the property.

The 84,600 sq ft site is zoned for residential use with a 1.6 plot ratio under the Urban Redevelopment Authority’s Master Plan 2014.

Owners controlling slightly more than 80 per cent of the development’s share value and strata area have consented to the collective sale. Unless unanimous approval is obtained, the transaction will be subject to approval by the Strata Titles Board and, if necessary, the courts.

The Estoril is a six-storey development with 44 units comprising 40 apartments and four penthouses.

Owners stand to receive a gross payout of about $4.6 million per apartment unit, and $9.85 million to $9.95 million per penthouse unit.

This is The Estoril’s fourth collective sale attempt. Separately, Perennial Real Estate Holdings said it has teamed up with Qingjian Group to jointly develop the Goodluck Garden freehold site that was sold en bloc to Qingjian for $610 million last month. This marks Perennial’s maiden foray into pure-play residential development, the mainboard-listed company said.

Perennial, through subsidiary PRE 9, entered into a 40-60 deal with China-based Qingjian Group of companies, comprising subsidiaries of Hong Kong-listed CNQC International Holdings and its minority partners.

The 210-unit development in Toh Tuck Road sits on a land area of about 360,130 sq ft.

Perennial said that based on the 2014 Master Plan, the site is zoned for residential use and has a gross plot ratio of 1.4, which translates to a maximum permissible GFA of about 554,605 sq ft, inclusive of a 10 per cent bonus balcony GFA.

This translates to a land price of about $1,210 psf ppr, said Perennial.

“Due to a high development baseline, no development charge is payable for the 10 per cent bonus balcony GFA, thus providing certainty to the land price, which works out to a lower $1,100 psf ppr.”