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.
Source: Property Guru