Mandarin Gardens eyeing $2.5 billion collective sale

The owners of Mandarin Gardens would stand to earn $1.58 million to $5.07 million based on the reserve price.

Mandarin Gardens condominium is now poised to raise the bar for collective sales attempts in Singapore as owners of the 99-year leasehold development have set a $2.48 billion price tag in a new en bloc attempt, reported Channel NewsAsia.

“This would represent probably the highest land price ever in Singapore in terms of absolute quantum,” said International Property Advisor chief executive Ku Swee Yong.

More: Mega developments take collective sale fever to new level

“$2.5 billion sounds large, but that’s partly also because this piece of land is one million square feet. Multiplied by the plot ratio, you could in fact build about three million square feet of residences.”

With C and H Realty as the appointed marketing agent, the collective sale agreement states that owners of the East Coast development stand to earn $1.58 million to $5.07 million based on the reserve price.

Located at Siglap Road, the 1,006-unit condominium enjoys a sea-facing view of East Coast Park and is near various schools such as Tao Nan School and Victoria Junior College.

Analysts believe the owners could face an uphill task as the $2.5 billion reserve price sits in uncharted territory.

This comes as developers must still consider the Additional Buyers’ Stamp Duty, development charge and upgrading premium as factors that could pile on the costs, which could balloon to a whopping $3 billion or $4 billion.

Currently, the former Farrer Court, which has been redeveloped into d’Leedon, holds the record for the largest collective sale by dollar value, fetching around $1.3 billion in 2007.

Source: Property Guru

Author: Romesh Navaratnarajah

Date: 15 March 2018

The freehold site off Upper Bukit Timah is close to Beauty World MRT station. (Photo: Knight Frank)

UPDATED: Goodluck Garden, a 210-unit freehold condominium along Toh Tuck Road, has been sold through a collective sale to Chinese developer Qingjian Group for $610 million, which is about 10 percent above the $550 million reserve price.

The tender for the approximately 360,130 sq ft site was launched at the end of January and closed on 7 March. Based on the 2014 Master Plan, the site is zoned for residential use with a gross plot ratio of 1.4.

In a statement, Qingjian said the successful bid adds over 600 units to the group’s land bank and is a significant addition to its earlier collective purchase of Shunfu Ville.

Goodluck Garden comprises eight blocks of 208 apartments and two commercial shops. Apartment sizes range from 1,023 sq ft to 1,959 sq ft, and the shops measure 323 sq ft and 980 sq ft respectively.

The sale price translates to a land rate of approximately $1,210 psf per plot ratio (psf ppr) based on a potential gross floor area of 504,182 sq ft. Since there is no development charge payable for the 10 percent bonus balcony space, the land price works out to a lower $1,100 psf ppr.

Each owner could receive between $924,000 and $3.51 million if the sale goes through, subject to several conditions.

Completed in 1984, the development off Upper Bukit Timah is close to Beauty World MRT station and various schools.

“With the site not subjected to the rising development charge rates, the site attracted strong competitive bids,” said Ian Loh, executive director and head of investment and capital markets at Knight Frank which brokered the deal.

Lim Hun Joo, chairman of the collective sale committee, said: “We have been fortunate to be able to catch the collective sale wave and launched the project for sale at the right time.”

Knight Frank also recently launched Windy Heights in Kembangan for en bloc sale at a reserve price of $806.2 million.

Source: Property Guru

Author: Romesh Navaratnarajah

Date: 9 March 2018