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More developments encouraged to go en-bloc

More developments encouraged to go en-bloc

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SINGAPORE — In what could be the biggest collective sale of a former Housing and Urban Development Company (HUDC) estate since 2007, a bid for Tampines Court came in for S$970 million yesterday — above the asking price of S$960 million.

Located at Tampines Street 11, the plot of land, at 702,164 square feet, is able to yield 2,500 units with each unit an average 900 sqf, according to real estate company Huttons Asia, the appointed marketing consultant for the collective sale. Upcoming executive condo launches include Anchorvale Lane EC, Rivercove Residences  while existing ones include Parc Life , Signature at Yishun, Brownstone EC, Visionaire EC, Inz Residence EC, The Criterion EC and Northwave EC, The Terrace EC,  The Vales EC, Hundred Palms Residences EC, Sol Acres EC and The Bellewoods EC. Rivercove EC floor plans and Rivercove Residences EC details will be available shortly.
 
If successful, each owner of the 560-unit Tampines Court would get between S$1.7 million and S$1.75 million, Huttons said.
It acquired the approval of 83 per cent of the residents to put the property up for a collective sale, in what was the third attempt.

It would be the biggest en-bloc sale since Farrer Court went for $1.34 billion in 2007.

Huttons, however, declined to reveal the identity of the developer, citing ongoing discussions involving sale conditions.

It hopes to conclude the deal in the next few days.

“The tender concluded with a satisfactory result above the reserve price, considering the sprawling land size Tampines Court sits on,” said Mr Terence Lian, head of Investment Sales at Huttons Asia.

With the bid price at S$970 million, and additional estimated fees of S$318 million to top up the lease to 99 years and to enhance the intensity for the site’s use, the buyer would be looking at a price of S$655 per square feet, said Mr Lian.

Built in 1985, the 101-year leasehold property has 69 years left. The development is comprised of 14 blocks with units ranging from 154 sqm to 161 sqm.

In 2008, its first attempt at an en-bloc sale — at an asking price of S$405 million — was dismissed by the Strata Titles Board due to a failure to meet the deadline. A second attempt in 2011 failed to draw the required approval from residents.

Analysts said yesterday that this pending sale showed the optimism in the property market and expected more en-bloc sales.

Mr Eugene Lim, key executive officer of ERA Realty Network, said: “This shows the confidence of the developer to take on a project of such scale … and the risks associated with it. More importantly, their optimism that the market recovery is well on track.”

Mr Desmond Sim, head of CBRE Research (Singapore and South-east Asia), said that the strong demand for land parcels might mean more developments may be encouraged to go en-bloc in the coming years.

“There are more developers than there are land parcels. In the last land sales, there were more than 10 bidders. A lot of developers are hungry for land.”
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