HPL's latest condo to top $2,000 psf price
CHRISTOPHER
Lim, group executive director of Hotel Properties Ltd (HPL), says a new
condo on the Beverly Mai site which the group bought last week is located
just as well if not even better than the Four Seasons Park condo the group
developed in the mid-1990s.
'The
project will be the most exclusive in Singapore,' Mr Lim said in an
interview with BT.
'The
pricing will definitely be above $2,000 psf on average. It's a question
of how much more than $2,000 psf.'
The
36-storey development is likely to be released for sale early next year.
The configuration of unit sizes has yet to be finalised, although market
watchers expect most of them to be large units of 2,000 sq ft or so,
given that these are in high demand by foreign buyers and well-heeled
Singaporean investors looking to buy apartments to lease out, particularly
to expatriate families.
Mr
Lim said the $1,600 psf breakeven cost for HPL's proposed new condo
on the Beverly Mai site reported in the media is 'in the lower range'.
HPL
bought Beverly Mai on Tomlinson Road through a $238 million collective
sale - $1,184 per sq ft of potential gross floor area inclusive of an
estimated development charge of $16.8 million.
The
site is zoned for residential use with a 2.8 plot ratio(ratio of potential
gross floor area to land area).
Mr
Lim said the Beverly Mai site is superior in terms of accessibility
and height control to the group's Four Seasons Park condo project which
set the benchmark for the high-end condo market in the 1990s.
The
new project at the Beverly Mai site will have 36 storeys. Four Seasons
Park has 27 storeys.
And
whereas the Four Seasons Park condo can be accessed only through Cuscaden
Walk, the Beverly Mai site can be accessed through Orchard Boulevard,
Grange Road (through One Tree Hill) and Paterson Road, Mr Lim said.
'The
new condo will boast unobstructed views as it will be surrounded by
landed properties and greenery, including the Good Class Bungalow areas
of Rochalie Drive, Chatsworth and Bishopsgate,' Mr Lim said.
'Beverly
Mai is in a quiet enclave surrounded by low-rise residential properties
and yet it's just a minute's walk from Four Seasons Hotel.'
HPL's
Beverly Mai deal - which is still subject to approval by the Strata
Titles Board since unanimous approval from owners has yet to be secured
- is the group's first major property acquisition in Singapore in about
nine years.
The
group is interested in more prime freehold residential sites here but
will stick to its current stronghold in the Cuscaden/Orchard belt.
On
the status of the group's long standing plans for a massive redevelopment
of the group's four properties in the Orchard/Cuscaden area - Four Seasons
and Hilton hotels, Forum and HPL House adding up to a land area of almost
220,000 sq ft, Mr Lim said: 'We're looking at this with great enthusiasm
but not ready to make any announcements.'
Expectations
that HPL would bring forward its plans have been running high since
March last year when the Urban Redevelopment Authority (URA) announced
a scheme to give incentives to redevelop properties along Orchard Road.
Under
this scheme, the URA may grant additional gross floor area (GFA) beyond
that allowed under the Master Plan - if redevelopments result in innovative
projects that generate tourism and other economic spinoffs.
Asked
if HPL will team up with Wheelock Properties (Singapore) - which recently
bought a 21 per cent stake in HPL - to undertake this massive redevelopment
of its four Cuscaden/Orchard properties or for the Beverly Mai project,
Mr Lim said there are no specific discussions for any joint venture
proposals.
'But
there is good chemistry between the two companies, and their assets
and ours are quite similar. That could lead to cooperation in future.
'We
are very friendly with Wheelock. We have high regard for their management
- Peter Woo and David Lawrence - and (HPL managing director) Mr Ong
Beng Seng knows them personally. We like what they have done and likewise,
they like what we have done.
'So
sure, in future, anything can happen.'
Even
without joint ventures, though, HPL can undertake the redevelopment
of the four Orchard/Cuscaden Road buildings through internal resources
and bank borrowings.
'Our
gearing is relatively low, about 40-plus per cent. And we're not a property
developer which is totally dependent on development profits. We have
quality investment income from hotel operations,' Mr Lim points out.
