Nanak Mansions in Meyer Road on the market with S$200m tag

14 September 2017

The fourth freehold residential site in the Meyer-Amber roads vicinity has come on the market this year.

Unlike the earlier three offerings, this one has been quietly released for sale by its owners, who are seeking around S$200 million. The 109,629 square foot plot on Meyer Road was once part of a small golf course.

Currently on the site is Nanak Mansions, a low-rise development completed in the 1980s comprising 36 maisonettes, each with either four or five bedrooms. Their strata areas range from 2,551 sq ft to 3,584 sq ft.

The units belong to members and companies of a low-profile Singaporean Indian family, all of whom have consented to sell their units. The family developed Nanak Mansions but none of the family members live in the units. All 36 units have been rented out.

Assuming the site fetches S$200 million, this works out to about S$1,420 per square foot per plot ratio (psf ppr), inclusive of an estimated development charge of S$18 million for intensification of the site.

A seasoned mid-sized developer estimates the break even cost at about S$1,950 psf and a likely average selling price of around S$2,200-2,300 psf, depending on the profit margin sought by the successful bidder. “Not outrageous – but a reflection of future pricing as with most residential bids these days.”

The Nanak Mansions site may be redeveloped into a five-storey project with a maximum gross floor area (GFA) of 153,482 sq ft – which can accommodate up to 203 units based on an average unit size of 70 sq metres (around 753 sq ft) GFA.

Under the Urban Redevelopment Authority’s Master Plan 2014, the site is zoned for residential use with 1.4 plot ratio (ratio of maximum gross floor area to land area).

The S$1,420 psf ppr price for the Nanak Mansions site is close to the S$1,409 psf ppr achieved in July for another freehold Meyer Road property – The Albracca collective sale. This is a smaller site of 23,400 sq ft but it can be redeveloped into a taller condo project of about 20 storeys; The Albracca is also closer to the Tanjong Rhu area and is near Katong Park MRT Station; it has a 2.1 plot ratio.

The Nanak Mansions site is next to a large, popular green lung and playground of about 70,000 sq ft – almost the size of a football field.

While residents in the new low-rise project that will come up on the Nanak Mansions site will not be able to count on sea views as the project will be blocked by the taller condos on the other side of Meyer Road, the subject site is nestled amid two-storey bungalows.

The new development on the Nanak Mansions site could potentially enjoy lovely views across the large Mountbatten/Goodman Road landed estate.

The site is also 400 metres from the upcoming Tanjong Katong MRT Station on the Thomson-East Coast Line.

As Nanak Mansions is not a collective sale, it will not be subject to approval by the Strata Titles Board or High Court. Hence the developer has the certainty of completion of the site purchase within three months. Julian Davison, a Singapore-based architectural historian and author, confirmed that the site was part of a golf course between World Wars I and II; the golf course stretched from Crescent Road to Broadrick Road. The earliest mention of the golf course in the newspapers was in 1921 – the club was already up and running at that time. It survived the war, but only just: the last mention was in 1946.

The Nanak Mansions site is believed to have been part of the properties owned by the family of Manasseh Meyer, a well-known Jewish British philanthropist after whom Meyer Road is named.

Market watchers note that there will be three tender closings for freehold residential sites along Meyer and the nearby Amber Road in the next few weeks. The other two are for the 213,670 sq ft Amber Park collective sale site, which has a reserve price of S$768 million or S$1,284 psf ppr; and 12 Amber Road, an estate sale of a 22,800 sq ft plot with an asking price of S$56.6 million to S$61 million (S$1,199-1,268 psf ppr). Both sites have 2.8 plot ratios.

A collective sale is also in the works at another Meyer Road condo, Hawaii Tower, which has a freehold land area of about 192,000 sq ft.

Adapted from: The Business Times, 14 September 2017

Image by: The Business Times