Maison Royale put up for collective sale

August 7, 2008
Maison Royale put up for collective sale
By UMA SHANKARI

MAISON Royale, a freehold residential site in Newton, has been put up
for collective sale.

Owners of the 20-unit project are asking at least $50 million.
Including an estimated $300,000 development charge (DC) and taking
into account a plot ratio of 2.8, the price works out to $1,273 per
square foot per plot ratio (psf ppr).

In contrast, nearby Lincoln Lodge was sold for $243 million, or $1449
psf ppr including an estimated DC of $413,000 in June last year at
the height of the en bloc frenzy.

The project was bought by a consortium comprising Koh Brothers,
Heeton Holdings, KSH Holdings and Lian Beng Group. Their offer was
the highest of several bids then. The developers have yet to tear
down Lincoln Lodge to put up a new development, and have instead
allowed occupants to keep renting for at least six months from the
sale completion date in July this year.

The comparatively lower price for Maison Royale is in line with
current weaker market sentiment, said Charles Chua, head of
investment sales at PropNex Realty, which marketing the project.

'Maison Royale is priced at a level where developers can feel that it
is still worthwhile for them to go in,' he said.

Maison Royale is on 14,107 sq ft of land. It is located at the
junction of Newton and Surrey roads, a three-minute walk from Novena
MRT station. Some 40 units of about 1,000 sq ft each can be built on
the site, PropNex said.

If the site is sold for $1,265 psf ppr, the breakeven cost will be
around $1,665 psf, it said. The successful developer could launch the
apartments in the new development at around $1,915 psf, the firm
added.

The tender for Maison Royale closes on Sept 9.