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South Beach homes could fetch S$4,000 psf

South Beach homes could fetch S$4,000 psf

5c193427870500_1_V235Romesh Navaratnarajah
Monday, Oct 29, 2012

The developers behind the much anticipated South Beach mixed-use project (pictured) are preparing to market its residential units, offices and shop spaces, reported AsiaOne.

The consortium comprising City Developments Limited (CDL) and IOI Corporation has yet to finalise pricing and the launch date, but they are now “preparing to market and pre-lease” the property, said a CDL spokesperson.

Located adjacent to Esplanade MRT station, the development will offer 49,000 sq m of office space, 7,900 sq m of retail space, 651 hotel rooms and 190 homes, while a 2,700 sq m area will be set aside for a private club.

Several property agents said home prices could average S$4,000 psf, but regulatory approvals are still required before units can be sold.

The prime site was purchased from the Urban Redevelopment Authority (URA) for nearly S$1.69 billion in 2007, which translates to S$1,069 psf based on the potential gross floor area (GFA).

However, the project has been plagued with problems from the start. Originally, US-based Elad Group, Dubai World subsidiary Istithmar and CDL each held a one-third stake in South Beach. Based on initial plans, the project would have been completed this year at a total cost of around S$2.5 billion.

However, CDL was forced to put it on hold during the 2008 global financial crisis and Elad and Istithmar sold their stake in 2011, leading to the entry of Malaysian heavyweight IOI Corp that same year.

Now scheduled for completion in 2015, South Beach will likely be marketed by DTZ.