Knight Frank Singapore, the exclusive marketing agent representing the interests of the owners of Normanton Park via their collective sale committee, is pleased to announce the launch of Normanton Park, a unique residential redevelopment site, for sale by tender.
A privatised housing estate originally built in 1977 for military personnel and their families, Normanton Park comprises of 13 residential blocks of 488 apartment units ranging from 118 sq m to 144 sq m and has a site area of 61,408.9 sqm (approx. 660,999 sq ft). Under the Master Plan 2014, the site is zoned for “Residential” use with a Gross Plot Ratio (GPR) of 2.1, which allows redevelopment potential to reach up to a maximum permissible Gross Floor Area (GFA) of approximately 1,388,099 sq ft.
Situated with the immediate vicinity are vast nature parks, business parks and science parks, with a confluence of professionals working around the area. The surrounding locality is also filled with reputable institutions of education, across a wide spectrum of academic stages. Established schools such as Anglo Chinese School (Independent), Anglo-Chinese Junior College, Fairfield Methodist Primary and Secondary Schools, Tanglin Trust School and the United World College of South East Asia, are located in the vicinity. In addition, the area is home to tertiary institutions such as the National University of Singapore, INSEAD and Singapore Polytechnic. The site is largely bounded by Kent Ridge Park, providing lush green views and is an excellent activity hub for nature lovers.
Major arterial roads and expressways such as the Ayer-Rajah Expressway (AYE) and Queensway provide seamless connectivity to other parts of Singapore, including a dedicated exit to the development along the AYE for easy accessibility. The site is a few minutes’ drive to the CBD, with a wide range of amenities along North Buona Vista Road, Holland Road and Alexandra Road, as well as just 25 minutes’ drive to the Changi International Airport. Kent Ridge MRT station, conveniently located a few bus stops away, is reachable by a direct feeder bus that goes to Buona Vista MRT station as well.
The owners are expecting offers of above S$800 million for their private enclave. This translates to a land rate of approximately S$898 psf ppr, which is inclusive of a differential premium of approximately S$225.3 million for intensification of the site based on the maximum permissible GFA of approximately 1,388,099 sq ft, as well as a lease top-up premium of approximately S$220.6 million for a fresh 99-year lease, based on current development charge rates. With the inclusion of a 10% bonus balcony and a proposed plot ratio of 2.31 (2.1 + 10% balcony), the land rate works out to approximately $850 psf ppr, subject to the authorities’ approval.
Based on the reserve price, each owner could potentially receive between approximately S$1.6 million to S$1.8 million.
“There has been a huge surge of professionals in the area with the pronounced change in infrastructure in the last five years. There also hasn’t been any new high-rise residential development launched within a 1.5 km radius in the last 15 years, leading to low supply in its locality. The new high-rise development could potentially build more than 1,200 new residential units of 100 sq m on the site, and new homeowners should be able to enjoy lush greenery views and unblocked views to the city and the sea. As such, we expect the property to attract strong interest in view of its exclusive location and positive site attributes,” says Mr Ian Loh, Executive Director & Head of Investment and Capital Markets.
Mr SS Chopra, Chairman of the Sale Committee and a retired Colonel from the Navy (SAF), comments, “It took a mere 11 days for us to reach the 80% consensus and a further two weeks to launch the tender today. This very quick and short duration, possibly breaking some record in Singapore, was achieved through the enthusiasm of the owners and the great collaboration between the marketing agent, lawyers, and the Sale Committee”. Mr Chopra further added that “as compared to our en bloc attempt in 2015, the Marketing Agents this time around are far more bullish. Hence, naturally, a combination of all the factors bodes well for a successful en bloc sale. However, we have not taken this for granted, as developers have their unique considerations and challenges. As such, the owners of Normanton Park are well informed and cognizant of them”.
The tender for Normanton Park will close on 5 October 2017, Tuesday at 3pm.