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Tan Tong Meng Tower hits en bloc trail

17 July 07 | The Business Times
by Uma Shankari

TAN Tong Meng Tower, a freehold residential site along Thomson Road, is seeking expressions of interest for a collective sale.

CB Richard Ellis (CBRE), which is marketing the project, expects the site to fetch around $205 million - or $1,449 per square foot per plot ratio (psf ppr), including an estimated development charge of about $240,000.

The site has a land area of about 50,600 sq ft and a 2.8 plot ratio - giving it a maximum gross floor area of about 141,600 sq ft.

About 118 apartments averaging 1,200 sq ft each can be built on the site, said Charles Hoon, CBRE's director for investment properties.

'The collective sale market for prime sites located on the fringe of Orchard Road is very much in demand,' said Mr Hoon. 'The most recent successful collective sale nearby is Lincoln Lodge at Khiang Guan Road, which sold for $1,449 psf ppr in June.

'Tan Tong Meng Tower is expected to achieve a similar land price, which works out to $205 million.'

CBRE also expects the nearby sold-out project Sky @ Eleven to give a fillip to the sale of the site.

At present, the site houses 35 apartment units of the same size. If it fetches $205 million, each owner will walk away with $5.9 million.

So far, more than 70 per cent of owners have agreed to a collective sale. For the sale to go through, some 80 per cent have to agree.

The expression of interest exercise will close on Aug 10 at 3 pm.