Fragrance

Fragrance: The tender for a private housing site at Tanah Merah Kechil Road closed yday amid a strong response from developers, with the highest bid of $285.2m submitted jointly by Fragrance and World Class Land topping 12 other bids. The 99-year leasehold site launched in June under the Confirmed List of the Govt Land Sales (GLS) programme sits on 150.7k sf and has a max gfa of 421.9k sf. It can be developed into about 420 homes. The highest bid translates to almost $676 psf ppr and is 1.8% higher than the next best bid. On a unit basis, it is sharply higher than the previous GLS site at Bedok South Avenue 3, which was sold in Feb for $539 psfppr. DWG research estimates breakeven price between $1,050 - 1,100 psf, and the est selling price between $1,300 - 1,350 psf, benchmarking above Optima@Tanah Merah's subsale prices, which are between $1,250-1,300 psf. Fragrance trades at 2x P/B. It will report 2Q12 results on 2 Aug after market.