Tag Archives: enbloc

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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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%.

Citimac on sale for $1350 psf-psr


The owners of Citimac Industrial Complex have hit the en bloc trail, with a minimum price of S$550 million, which works out to S$1,350 per square foot of potential gross floor area for the freehold site.

The unit land price figure is inclusive of an estimated development charge (DC) of S$109 million payable to the state.

Located a stone’s throw from Tai Seng MRT Station, the 139,789 sq ft site can be redeveloped into a new project with 489,261 sq ft maximum gross floor area (GFA). The site is zoned for Business 1-White use, with a 3.5 maximum gross plot ratio. Of this, at least 2.5 plot ratio (translating to 349,473 sq ft GFA) shall be for Business 1 (or B1) use and the remaining GFA of up to 139,789 sq ft will be for white uses. Most developers would likely utilise the white component for retail use, given the site’s prime Macpherson Road frontage.

The Citimac site is the largest freehold Business 1-White redevelopment site in Singapore to be put up for sale, according to Cushman & Wakefield, which is handling the collective sale through a tender that will close on Oct 30.

The property consulting group said it is expecting “very good reception” for Citimac especially from local and overseas mid-sized and large developers, given its prized location and the white component in its zoning. The potential future growth of the Paya Lebar commercial hub will drive strong investor interest, it added.

Christina Sim, director of capital markets at the property consulting group, said: “Given current market conditions and a dearth of freehold Business 1-White sites in prime locations, this site offers a unique opportunity to develop top-end Business 1 space for data centres, research and development, information technology, as well as a sales and distribution centre for the medical and aviation industries.” Business 1 typically includes non-pollutive light industrial and warehouse use.

Market watchers acknowledged the site’s prime location but said the pricing expectation is ambitious. A seasoned observer said assuming average selling prices of about S$4,500 psf for the retail space and S$1,200 psf for the B1 space, the land price could be around S$1,000 psf per plot ratio (psf ppr) at most, including DC. “This would be how established local developers would bid for the site, assuming 15 per cent profit margin,” he said. That said, it may be conceivable for say a China player keen on investing in Singapore, to bid more aggressively.

In October last year, Guang Ming Industrial Building, also near Tai Seng Station albeit on a longish, somewhat irregular-shaped strip of nearly 20,000 sq ft land, fetched S$45.8 million or S$837 psf ppr.

In May this year, Irving Industrial Building, a 65,309 sq ft site with a more regular shape albeit tucked from the main road, was launched for collective sale. The reserve price was said to be S$200 million (or S$1,079 psf ppr) but there were no takers.

The latest talk in the market is that a potential buyer, believed to be China’s Nanshan Group, has been secured and that efforts are underway to get the requisite consent level from Irving Industrial Building’s owners at a lower price that would reflect around S$930 psf ppr.

Citimac Industrial Complex in comparison is a rectangular-shaped plot boasting prime road frontage. “It is likely that the developer will break even on B1 use, with profit likely to come from the retail space for the white component,” said Ms Sim.

Cushman & Wakefield brokered the sale of Guang Ming Industrial Building and is also marketing Irving Industrial Building. Both are also freehold and have the same zoning as Citimac Industrial Complex.

JLL regional director (investments) Tan Hong Boon noted that freehold industrial sites are not easy to come by. “Sources are typically from single-owner sales and collective sales of generally small to medium sized, old projects,” he added.