SC Global to pay $266m for Paterson Tower
20 March 2006
SC Global Developments will pay $266 million
or $1,064 per sq ft per plot ratio (psf ppr) for 8 Paterson Hill,
Paterson Tower.
In a press release yesterday, SC Global said
that its offer, made by wholly owned subsidiary Grandon Pte Ltd,
for the en-bloc purchase of all 72 units at Paterson Tower, had
been accepted by a majority of unit owners.
Paterson Tower was put on the market in February
and its marketing consultant United Premas had indicated an asking
price of $280 million. The failure to achieve this price suggests
that prices for such prime redevelopment sites may have plateaued.
Prices for prime redevelopment sites had
been rising steadily this year. In February, Far East Organization
paid $120 million or $1,058 psf ppr for Angullia Mansion, the highest
price achieved since 1997. Then, earlier this month, Hasetrale Holdings
paid $138 million or $1,218 psf ppr for Eng Lok Mansions, an all-time
high for a collective sale site. Both properties are within a stone's
throw of Paterson Tower.
The price for Paterson Tower may not have
broken any records but owners will still walk away with about double
the market price for their homes. The current market price is about
$1.85-1.9 million per unit.
The $266 million price tag includes the price
for a 6,459 sq ft adjoining plot of state land. The combined land
area is 121,006 sq ft and the plot ratio is 2.1. This will give
the new development on the site a potential gross floor area of
254,112 sq ft and a building height of 24 storeys.
In line with SC Global's niche development
strategy, a high-end luxury residential development will be built.
The Boulevard
Residences around the corner, which was also developed by SC
Global, made the headlines last year when a three-bedroom unit sold
for $2,200 psf in October, a record high.
