Singaporean property developer CapitaLand has completed its acquisition of Pearl Bank Apartments in the city-state’s Chinatown area through a private treaty collective sale for S$728 million ($550 million).
In a press statement, CapitaLand said the sale price translates to a land cost of approximately S$1,515 per square foot per gross floor area, after factoring in an upgrading premium of approximately S$201.4 million for the lease top-up.
Pearl Bank Apartments, a 37-storey development, comprises a total of 288 units – 280 apartments and 8 commercial units – and has a 99-year leasehold tenure with effect from June 1970.
The prime site atop Pearl’s Hill in Outram Park has a land area of 82,376 square feet.
“Subject to conditions precedent, CapitaLand plans to redevelop the site into a high rise residential development comprising around 800 units with a host of social, shared facilities which will foster community spirit and celebrate the area’s unique heritage,” CapitaLand said in a statement.
In a separate statement, Colliers International said Pearl Bank Apartments owners, whose unit sizes range from 123 sqm to 371 sqm, stand to receive between S$1.8 million and S$4.9 million from the successful sale of the property.
Meanwhile, owners of commercial units with sizes ranging from 65 sqm to 523 sqm, will potentially receive between S$1.2 million and S$6.9 million.
The site is well-served by the Outram Park MRT station, which is linked to the East-West Line and North-East Line. It will also be connected to the upcoming Thomson-East Coast Line (TEL) which will open in phases starting from 2019.
The TEL will connect Outram Park to numerous lifestyle and recreational attractions, such as Orchard Road, Marina Bay and Gardens by the Bay.
CapitaLand Limited President & Group CEO Lim Ming Yan highlighted the property’s prime location at the confluence of Singapore’s business and cultural districts as well as its excellent transport connectivity.
“The acquisition is in line with CapitaLand’s disciplined investment strategy to build our quality residential pipeline on a sustainable basis. Having built a portfolio of world-class architectural masterpieces which are well connected to transport hubs, CapitaLand is in an unparalleled position to develop this plum site into a gleaming icon for Singapore,” Lim said.
He added that CapitaLand will “reinvigorate the area with a unique design, one which will blend modern aesthetics and heritage elements to reflect the rich, multifaceted culture of Chinatown”.
Targeted for completion by early 2023, the upcoming residential development offers young urbanites to own a home in a mature estate with local culture and heritage, said CapitaLand Singapore CEO Ronald Tay.