Tag Archives: collective sale

Recent Collective Sales in Feb 2018

1. City Towers (SGD $401.9M). District 10

The freehold condominium development in District 10 was sold for $401.9M in early Feb 2018. Each unit’s owner was to receive between $2.78M – 11.5M. The project consists of 77 units and sold 13% above reserve price. The rate was $1,847 psf ppr (including a $3.5M development charge). The site has a land area of about 104,531 sq ft (with a plot ratio of 2.1), and can be redeveloped to 24 storeys of 190 new units (average size of 1098 sqft). JAPURA Development, linked to Hong Kong tycoon Li Ka-shing’s Cheung Kong empire, is the party that clinched City Towers.

2. Pearl Bank (SGD $728M), Outram Park Vicinity

The iconic Pearl Bank Apartments was recently sold to Capitaland at $728M in mid Feb 2018. The price matches the reserve price of the owners, which translates to $1psf. ,515 psf ppr after factoring a $201.4M premium for a lease top-up to a fresh 99-year lease. The site has a land size of 82,376 sqft of existing plot ratio of 7.45. There are plans to redevelop the site into a 800-unit condo project of total GFA of 613,530 sqft. Break even prices are expected to be $2,000-2,250 psf. The project is located near to the Outram Park MRT interchange and Chinatown, and future units are likely priced to be between $2,400 – $2,600 psf.

3. Brookvale Park (SGD $530M), Sunset Way

Brookvale Park, a 160-unit development in Sunset Way, has been sold to Hoi Hup Sunway, a joint venture between Hoi Hup Realty and Sunway Developments, for $530 million. The sprawling 999-year leasehold land is in a central yet lush setting. The sale price reflects a land rate of about $932 per sq ft per plot ratio, after factoring in an estimated development charge of about $26 million. Each owner would expect to receive gross sales proceeds of between $2.5 million and $4.4 million per unit. The site is a short drive away from Holland Village and Bukit Timah Nature Reserve, and near reputable tertiary and international education institutions such as Ngee Ann Polytechnic, Singapore Polytechnic, National University of Singapore, Singapore University of Social Sciences and Canadian International School.

4. Riviera Point (SGD $72M), River Valley area

Riviera Point in Kim Yam Road was sold to Macly Group, a Singapore property developer in Mid Feb for $72M. Riviera Point’s site area stands at 14,579 sq ft. The use of the land has been zoned as “residential” with a plot ratio of 2.8 and a height control of 36 storeys. The verified existing gross floor area is about 49,265 sq ft, which translates to a plot ratio of 3.379.

5. Cairnhill Mansion (SGD $362M), Cairnhill Road at District 9

The development in Cairnhill Road was sold to Singapore-listed property developer Low Keng Huat for SGD $362M. Cairnhill Mansions, an 18-storey block comprising 61 apartments, sits on a land area of about 43,103 sq ft. The price tag works out to $2,311 per square foot per plot ratio (psf ppr).

 

 

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En Bloc fever catches on (updated: Normanton Park sold at $830.1M on 5 Nov)

The collective sale fever in Singapore is gathering steam as the news of record enbloc deals and potential sites looms. Among the latest that are joining the fever are:

1. Pine Grove ($1.65B)
Owners of the 660-unit former HUDC estate are aiming to achieve the largest collective sale deal in Singapore. The price tag of $1.65B is much higher than the last record of $1.34B deal made in Farrer Court in 2007.

An extraordinary general meeting will be held on Oct 29 to get at least 80 per cent of owners to back the en-bloc sale. Based on the minimum reserve price, each owner is looking at receiving $2.08 million to $2.64 million per unit.

It will be the estate’s 3rd attempt for a collective sale after a no-bid attempt in 2011 following the owners raising the reserve price from $1.33 billion to $1.7 billion. Its first try was in 2008. The 99-year leasehold project has 66 years left on its tenure

2. Braddell View ($2B)
Braddell View, the largest of Singapore’s 18 HUDC estates and the last to be privatised in March this year, is planning to jump on the en bloc bandwagon.

The 918-unit estate is holding an extraordinary general meeting on Oct 10 to form a collective sales committee to kick-start the process.

The reserve price for the 1.124 million sq ft development is S$2 billion. If successful, this would easily eclipse Pine Grove’s S$1.65 billion en bloc attempt. The 99-year lease Braddell View development has 63years left on its lease.

3. Spring Grove ($1B)
Owners in the 325-unit estate are targeting at least $1 billion sales price. They had asked for $1.39 billion in 2014. A $1 billion price works out to about $1,807 per sq ft (psf), based on a maximum gross floor area of 553,377 sq ft. This is above the $1,285 psf to $1,438 psf that units in the estate have fetched so far this year.

There are quite a lot of sales en bloc going on now, but not that many are in the prime district, so that’s something going for this development.

4. Normanton Park ($0.8B) — updated: sold at $830.1M
It will be second-time lucky in its collective-sale bid at an $800 million reserve price for the hopeful owners at Normanton Park.

The Normanton Park owners are among those capitalising on the collective-sale fever. It failed in its previous bid in 2015. The tender will close today on Oct 5 at 3pm.

Based on the reserve price, each Normanton Park unit owner could get between $1.6 million and $1.8 million. This translates to a land rate of about $898 per sq ft per plot ratio (psf ppr), which includes a differential premium for intensification of the site of about $225.3 million, and a top-up premium of $220.6 million for a fresh 99-year lease.

Update: Normanton Park has been sold to Kingsford Huray Development for S$830.1 million — translating to a land price of approximately S$969 per square foot per plot ratio (psf ppr), is the highest land rate for a 99-year leasehold collective sale site this year.

Each home owner will stand to receive about S$1.68 million to S$1.86 million. Kingsford will have to fork out a premium of about S$231.1 million top up the lease to another 99 years, and top up about S$283.4 million to redevelop the site to a gross plot ratio of 2.1.

5. ICB Shopping Centre ($65m)
This is the first en bloc attempt by ICB Shopping Centre, a mixed-use development in Yio Chu Kang Roadwhich is more than 30 years old. It comprises six apartment units (of between 1,324 sq ft and 1,550 sq ft) and 13 retail units. The site about 1 km from Nex shopping mall and Serangoon MRT station, and is also near eateries and other small retail shopping areas.

The development’s residential and commercial owners are looking for a price of S$65 million to S$70 million. Based on its maximum potential gross floor area (GFA), the asking price range translates to a unit price of about S$1,390 per sq ft (psf) to S$1,500 psf.

The development sits on a freehold plot with a land area of 15,548 sq ft. It has a current GFA of 25,123 sq ft, but with a plot ratio of 3.0, it can be built to a maximum permissible GFA of 46,643 sq ft.
Concerns about current enbloc fever
Though the enbloc fever looks to getting even hotter, the concerns among the industry players are about the sustainability of the momentum over the long run. The market can only absorb one or two big sites. Some of the record-aiming enbloc sites have such huge sizes that the interested developers will need to factor in expected costs if they cannot finish selling the completed units.

Selling all the units within five years of buying the land to avoid additional buyer’s stamp duty (ABSD) will pose a challenge. This could affect the price developers are prepared to pay for the site.

Projects such as The Interlace and d’Leedon, which were built on large sites sold during the 2007 en-bloc boom, are still left with unsold units, together with the existing launches which have unsold inventory. New launches will face some fierce competition among the existing unsold units as well as among themselves.

To top it off, the property rental market has yet shown signs of shaking off its lull as well amidst the economic/employment uncertainty. Unless the authorities loose up the policy of workforce, and new jobs emerge from the current lacklustre market, it remains to be seen if new launches can provide good returns to prospective buyers.

Property news spotlight

In today’s papers, some of the articles caught my eye. One is that of property stocks which were considered undervalued. The stocked mentioned includes Reits and real estate developers. These stocks in fact take up 2/3 of the undervalued stocks in Singapore. Some investment experts recommended to be selective in the current uncertain market moods, to choose selected offshore focused S-Reits (eg FCT, Keppel DC Reit and A-Reit) and developers (eg WingTai and UOL).  Other under valued property stocks (above $1B capitalisation) mentioned include OUE, Yanlord, Perennial, Ho Bee Land, Hongkong Land, Wheelock, United Engineers, Guocoland and others. It could be a opportunity to buy these stocks at a low but do note the risks involved.  It could also be a good chance to note the properties under these companies as one may be able to get a better bargain than usual.

On the real property aspect, Shunfu Ville at Bishan is going for another shot at the lull collective market, after failing to find a buyer at last year’s tender. The minimum price according to JLL is $688 m or $750psf ppr. Each owner could potentially bag $1.92m if the deal goes through. The intention to put back into the market may be boosted by the recent sale at Siglap GLS site which was sold at $624.18m.

Normanton Parka also did not attract any buyers despite some interest from 2 developers.  The reserve price is $840m or $605 psf ppr for the leasehold property site at Kent Ridge Park.

At Vivocity near Sentosa/Keppel area, MCT is embarking an asset enhancement initiative to strengthen its F&B offerings in a bid to further boost the mall’s appeal. MCT’s other assets includes Harbourfront, PSA building and Mapletree Anson. The occupancy rate for its overall portfolio is 98.4%.

Dunearn Road Property put up for enbloc sale

KHEAM Hock Gardens, a private residential site located off Dunearn Road, has been launched for sale by tender with a reserve price of S$59 million.

This translates to S$1,430 per sq ft for the site, which has an area of around 41,245 sq ft.

Located at 38 Kheam Hock Road, the existing freehold development comprises 19 apartments.

More than the required 80 per cent of owners have consented to the collective sale.

BT: Spring Grove up for en-bloc

Spring Grove House 160714

SPRING Grove, a residential redevelopment site along Grange Road, has been put up for tender by Knight Frank Singapore.

SPRING Grove, a residential redevelopment site along Grange Road, has been put up for tender by Knight Frank Singapore.

The site has an extensive land area of 24,481.2 sq m.

It currently comprises 3 blocks of 20-storey apartments with 325 residential units and the conserved Spring Grove House.

Under the Master Plan 2014, the site is designated as “Residential” with a Gross Plot Ratio (GPR) of 2.1.

http://www.businesstimes.com.sg/breaking-news/singapore/spring-grove-along-grange-rd-put-enbloc-sale-20140716