Heeton seeking single buyer for its iLiv@Grange

[SINGAPORE] Heeton Holdings is said to be looking for a buyer to pick up all 30 units in its iLiv@Grange project, which is expected to receive Temporary Occupation Permit (TOP) in October.

Talk in the market is that it is seeking $2,200-$2,300 psf for an en bloc sale of the 16-storey tower, which would work out to $129 million to $135 million based on the freehold District 10 development's total saleable area of about 58,500 sq ft.

However, if Heeton does not secure attractive price offers for an en bloc sale, it plans to sell the units individually. Heeton has two years after TOP to finish selling the whole project, under Qualifying Certificate conditions.

Analysts believe Heeton's breakeven cost for the project could be around $2,000-2,200 psf. Heeton bought the 20,325 sq ft site, which formerly housed Grange Court, for $72.8 million or $1,700-plus per square foot per plot ratio in 2007.

iLiv@Grange comprises mostly two and three-bedroom apartments. Many of the two-bedders have substantial void areas, which accounts for the development's total saleable or strata area being about 30-odd per cent more than the maximum gross floor area under the Master Plan.

Some market watchers say it may be tough looking for an en bloc buyer given current regulations. Assuming the purchaser is a corporate entity, it would have to pay 15 per cent additional buyer's stamp duty in addition to being limited to a loan quantum of only 20 per cent of the property's value. "More likely, a high net worth individual type looking for a place to park wealth may be drawn to such an investment," a property agent suggested.

"To sweeten the deal, some form of financial engineering may have to be introduced - perhaps in the form of a rental guarantee for the buyer, or requiring the buyer to share some of the future capital appreciation with the seller," suggested a market watcher.

Selling the units individually may also be challenging as the unit sizes are relatively big, translating to lumpy absolute prices. Taking a 1,755 sq ft two-bedder loft unit and assuming it is priced at $2,300 psf, the total price would amount to $4 million. The same psf rate applied to a three-bedroom (with utility room) of 2,885 sq ft would amount to $6.6 million. "Transactions for big-ticket apartments are pretty thin," as a seasoned agent put it.

The development's two penthouses are 3,294 sq ft and 3,477 sq ft, each with a roof terrace and private pool.

The architect of the project, which features a curvaceous facade, is Mercurio Design Lab of Italy. The interior and landscape have been designed by yoo inspired by Starck

Source: 30th August 2013 StProperty

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Heeton seeking single buyer for its iLiv@Grange

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