Chip Eng Seng

[revelationofpyramids]

CES will launch its Grandeur Park Residences at Tanah Merah after CNY. The floor plans have been released and units are quite bite size. Total gross saleable space works out to be about 544,000 sf. Assuming total cost psf of this space to be $1,120psf ($770 land cost derived at by dividing total price by GSA + $350 construction and other costs) and ASP (Assumed selling price) of $1,360 psf, gross profit psf is $240psf.

Multiply $240 by 544,000 gives a total gross profit of about $130 million.

Note that there is GFA set aside for a child care centre (5,380sf). I am not sure how CES will handle this space. If it's given to residents as space which can generate rental income, it will be a nice marketing angle to potential buyers. The MC will get a monthly income which can be used to offset expenses, leading to lower MC bills for owners.The child care centre is located near to the main entrance, which probably means the lessee of the space can take in children from outside the condo. The convenience of having a child care centre right in your condo will attract buyers planning to have kids soon.

The condo is also connected to the Tanah Merah MRT via a covered walkway, which is a big plus. It also overlooks lots of landed properties, giving it unblocked faraway views.

With CES' past marketing acumen, I am expecting this project to have good and quick sales on its launch.

Meanwhile, CES share price seems to be artificially depressed for a long while, with the bear or bears adamant on closing the stock at a low price everyday. This kind of price pattern is usually bullish over the longer term, when the bear(s) exhaust itself and surrenders to the bulls.