BT reported today that EL Development has inked a deal to buy the freehold Diamond Tower at Jalan Rajah in the Balestier area for $49.6 million through a collective sale.
The price works out to a unit land price of about $652 per square foot of potential gross floor area inclusive of an estimated $300,000 development charge payable to the state.
Diamond Tower has a land area of about 27,323sqft and is zoned for residential use with a 2.8 plot ratio. The plot ratio is the ratio of maximum potential gross floor area to land area.
EL Development intends to build an 18 – 20 storey apartment block with about 100 units of mostly one and two bedrooms and some three-bedders. The breakeven cost for a new apartment based on today’s construction costs works out to about $1,200psf.
EL Development may enter into a partnership with another party, said to be construction group Teambuild, for the site’s acquisition.
Diamond Tower’s collective sale was marketed by Urban Front Real Estate. It was offered through a tender exercise which closed last month without a deal being sealed. EL Development has submitted their offer after that and are buying under a private treaty deal.
The proposed collective sale of Diamond Tower will be subjected to approval from Strata Titles Board as its owners have not unanimously consented to the sale.
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