http://www.straitstimes.com/archive/...e-bid-20131210

Eunosville revives collective sale bid

1st attempt hit by tighter loan rules; River Valley site also put up for sale

Published on Dec 10, 2013

By Cheryl Ong


TWO properties were put up for collective sale yesterday - one a $688 million estate that has already tried once before, and the other a new candidate.

The industry will be keenly watching the second en-bloc attempt by former HUDC estate Eunosville, which could become the largest collective sale in six years.

The 99-year leasehold property in Sims Avenue failed in its first attempt after falling victim to new rules governing home loans that were imposed in June.

Mr Karamjit Singh, head of investments and residential at property agency Jones Lang LaSalle, said "three large developers" had expressed interest in the site when the tender closed in August.

But the new rules - called the Total Debt Servicing Ratio (TDSR) - capped a borrower's total monthly debt repayment at no more than 60 per cent of gross monthly income.

"As this was shortly after the introduction of TDSR, (the developers) asked for more time to assess the market, given that it entails commitment to a large-scale project," said Mr Singh.

The asking price for Eunosville remains unchanged from the first sale attempt, at $688 million or $799 per sq ft (psf) per plot ratio (ppr). This is after $163 million is paid to the Government to top up its existing lease of 74.5 years to 99 years and to intensify the site's use, said Jones Lang LaSalle.

It could be the largest collective sale since the 618-unit Farrer Court went for $1.34 billion in 2007.

HUDC estates that have been sold en bloc in the past six years include Gillman Heights at $548 million, Minton Rise at $342 million and Amberville, which went for $183 million.

The Eunos site has a land area of 376,712 sq ft, with a gross plot ratio of 2.8, so about 1,000 units averaging 1,100 sq ft can be built.

A freehold residential development off River Valley Road was also put up for sale by tender yesterday.

Jervois Gardens in Jervois Road comprises two four-storey walk-up blocks, with 14 maisonettes and three apartments, on a 34,038 sq ft site.

It has a price tag of about $72 million, or around $1,510 psf ppr.

Developers have the option to build an additional 10 per cent of gross floor area for balcony space, pricing the land at $1,374 psf ppr.

Units at nearby condos like RV Residences, RV Edge and The Montana cost between $1,900 and $2,250 psf, noted Ms Tang Wei Leng, Colliers International executive director of investment services.

She added that units at new launches in the vicinity, such as Mon Jervois and Echelon, sell for up to $2,474 psf.

The site has a plot ratio of 1.4, which means a five-storey development with about 65 units of 800 sq ft each can be built.

The tender for Eunosville closes at 2.30pm on Jan 14, while the one for Jervois Gardens closes at 3pm on Jan 22.

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