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Thread: Shunfu Ville sold for S$638m to Qingjian

  1. #1

    Default Shunfu Ville sold for S$638m to Qingjian

    http://www.straitstimes.com/singapor...ive-sale-again

    Shunfu Ville tries for collective sale again

    Jan 28, 2016

    Wong Siew Ying


    Owners at the Shunfu Ville residential development near Bishan are having another go at a collective sale after failing to find a buyer in the first tender last year.

    The 358-unit development in Shunfu Road was relaunched for tender yesterday with the same minimum asking price of $688 million.

    Shunfu Ville went up for collective sale in September but the tender exercise closed with no formal bids lodged although two developers made expressions of interest.

    Ms Yong Choon Fah, the national director of capital markets at JLL, the estate's sole marketing agent, told The Straits Times yesterday that the deal was relaunched as the price indicated by the two developers did not meet owners' expectation.

    The minimum asking price of $688 million works out to $791 psf per plot ratio. JLL said each owner could pocket about $1.92 million if the deal goes through - about 50 per cent more than what they could get on the open market.

    In a statement yesterday, Ms Yong said JLL believes "it would be better received this time round than the first tender", as the 408,927 sq ft site would attract developers keen to replenish their land banks.

    "With the supply of sites via the government's confirmed list slowing down, we do not expect condominium land prices, especially those with unique attributes, to drop very much," noted Ms Yong.

    She added that a recent government tender for a large site at Siglap, which attracted a top offer of $624.18 million, reflected a "strong underlying medium term confidence of market recovery".

    In addition, there have not been any government sites in the Bishan/Thomson area up for sale since October 2014, JLL noted.

    Shunfu Ville, which comprises three 16-storey towers and three low-rise blocks, is near Marymount MRT station and the Upper Thomson station on the Thomson-East Coast Line, due to be completed in 2020.

    JLL said the site could yield about 1,100 units, with an average size of 1,000 sq ft.

    The estimated break-even cost would be around $1,250 psf, with the new units expected to fetch between $1,400 and $1,450 psf.

    The tender exercise closes at 2.30pm on March 10.

  2. #2

    Default Shunfu Ville up for en bloc sale again with same reserve price

    http://www.businesstimes.com.sg/real...-reserve-price

    Shunfu Ville up for en bloc sale again with same reserve price

    JLL relaunches the estate's sale after an unsuccessful attempt to sell it last year; price remains at S$688m

    By Kalpana Rashiwala

    [email protected]

    @KalpanaBT

    Jan 28, 2016


    JLL has relaunched the en bloc sale of Shunfu Ville near Marymount MRT Station after an attempt last year did not result in a sale.

    However, there is no change in the reserve price by the owners at S$688 million, which works out to S$791 per square foot of potential gross floor area, inclusive of two payments to be made to the state - a differential premium for building a bigger project on the site and a lease-upgrading premium to top up the site's lease to 99 years. Still, JLL is hopeful of a positive outcome this time around.

    It pointed to a few "positive signs" starting to emerge for the residential property market. Housing has become more affordable since 2008, when suburban private home prices were equivalent to nine to 10 years' income. Now the figure is about 5.6 years.

    Moreover, developers remain hungry for land, as seen in the recent state land tender for a prime seaview site along Siglap Road. The 99-year-leasehold site received eight bids, with the highest at S$624.18 million or S$858 per square foot per plot ratio (psf ppr). This was the largest private condo site in the suburbs or Outside Central Region to be sold at a state tender in four years.

    Yong Choon Fah, national director of capital markets at JLL, said this bodes well for Shunfu Ville, which has a central location amid an affluent population catchment, good MRT connectivity, nice views of MacRitchie Reservoir and golf courses, and good schools and malls nearby.

    "Priced at a minimum of S$688 million, which reflects about S$791 psf per plot ratio, we believe it would be better received this time round than the first tender, when two letters of interest were received," she added.

    Moreover, there has not been any Government Land Sales site within the Bishan/Thomson area for sale since the award of the Lorong Puntong site (now being developed into Thomson Impressions) in October 2014.

    The first tender for Shunfu Ville closed on Oct 27 last year and the owners have up to July 10 this year to secure a buyer and submit an application to the Strata Titles Board (STB) for the approval of the collective sale. The court's approval will be required assuming unanimous consent of owners has not been secured by then.

    Right now, owners controlling slightly over 81 per of share value and strata area in the development have given the nod for the collective sale. Located about 200 metres from the existing Marymount MRT Station on the Circle Line and about 600m from the future Upper Thomson MRT Station on the Thomson East-Coast Line, the 408,927-sq-ft Shunfu Ville site has a balance lease term of about 70 years.

    The estate was built in the late 1980s by the former Housing & Urban Development Company (HUDC) and privatised in 2013. Under the Urban Redevelopment Authority's Master Plan 2014, the Shunfu Ville site is zoned for residential use with a 2.8 plot ratio (ratio of maximum gross floor area to land area).

    Based on the reserve price, the estimated breakeven cost for the successful buyer should be around S$1,250 psf, with the new units expected to fetch an average price of S$1,400-S$1,450 psf, Ms Yong said.

    Shunfu Ville is just one stop away from Bishan MRT Station and the conveniences of the Junction 8 mall. It is also within a 1km radius of Catholic High Primary. The latest tender for Shunfu Ville will close on March 10.

  3. #3
    Join Date
    May 2012
    Posts
    3,951

    Default

    I had thought Normanton would be the first... But turns out OCR again the first to jump the gun.


    Shunfu Ville set to heat up collective sale market
    May 19, 2016

    The collective sale committee earlier this month unanimously voted to accept a letter of intent from the interested purchaser, which is understood to be Qingjian Realty.

    The 358-unit project was first put on sale in September with an asking price of at least $688 million or $791 per sq ft (psf) per plot ratio. The tender closed last October with no formal bids but two letters of interest. It was relaunched for tender at the same price in late January.

    The last collective sales of this scale were of the former Farrer Court for about $1.34 billion and former Leedon Heights for $835 million, both in 2007.

    Shunfu Ville, built in the late 1980s by the former Housing and Urban Development Company (HUDC) and privatised in 2013, sits on a 408,927 sq ft site with about 70 years left on its lease and a plot ratio of 2.8.

    The site can yield about 1,100 units with an average size of 1,000 sq ft, while break-even cost could be about $1,250 psf, with new units fetching $1,400 to $1,500 psf, marketing agency JLL said.

    Qingjian's bid is a sign of returning interest in en bloc opportunities owing to limited land banks on offer here, especially as the Government has cut back on its land sales programme, said Ms Alice Tan, Knight Frank's research head.

    "Property cooling measures and the Additional Buyer's Stamp Duty on developers if they cannot complete and sell all units in five years have meant that the collective sales market has been very quiet. Developers are not willing to take up more risks especially for larger investment deals of above $500 million."

    Yet, despite the prevailing slow market, some developers seem to be more bullish and confident of Singapore's property market in the longer term, she added.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

  4. #4
    Join Date
    May 2012
    Posts
    3,951

    Default

    My bad - it's RCR.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

  5. #5

    Default Shunfu Ville set to heat up collective sale market

    http://www.straitstimes.com/business...ve-sale-market

    Shunfu Ville set to heat up collective sale market

    19 May 2016

    Rennie Whang


    The moribund collective sale market here could soon get a boost if the planned sale of Shunfu Ville goes through - potentially the largest such deal since 2007.

    About 83 per cent of the Upper Thomson project's owners by share value and total area - above the 80 per cent threshold - have signed a collective sale agreement based on a $688 million reserve price.

    The collective sale committee earlier this month unanimously voted to accept a letter of intent from the interested purchaser, which is understood to be Qingjian Realty.

    The parties are expected to make an announcement today, after a five-day cooling-off period for owners after signing a sale deal.

    The 358-unit project was first put on sale in September with an asking price of at least $688 million or $791 per sq ft (psf) per plot ratio. The tender closed last October with no formal bids but two letters of interest. It was relaunched for tender at the same price in late January.

    The last collective sales of this scale were of the former Farrer Court for about $1.34 billion and former Leedon Heights for $835 million, both in 2007.

    Shunfu Ville, built in the late 1980s by the former Housing and Urban Development Company (HUDC) and privatised in 2013, sits on a 408,927 sq ft site with about 70 years left on its lease and a plot ratio of 2.8.

    The site can yield about 1,100 units with an average size of 1,000 sq ft, while break-even cost could be about $1,250 psf, with new units fetching $1,400 to $1,500 psf, marketing agency JLL said.

    Qingjian's bid is a sign of returning interest in en bloc opportunities owing to limited land banks on offer here, especially as the Government has cut back on its land sales programme, said Ms Alice Tan, Knight Frank's research head.

    "Property cooling measures and the Additional Buyer's Stamp Duty on developers if they cannot complete and sell all units in five years have meant that the collective sales market has been very quiet. Developers are not willing to take up more risks especially for larger investment deals of above $500 million."

    Yet, despite the prevailing slow market, some developers seem to be more bullish and confident of Singapore's property market in the longer term, she added.

    When contacted on Tuesday, Mr Woo Hon Wai, chairman of the collective sale committee, would say only that "we are coming to the end of our collective sale attempt".

    Owners have up to July 10 this year to secure a buyer and submit an application to the Strata Titles Board for its approval. "We will need to wrap it up quickly," he said.

  6. #6

    Default Shunfu Ville sold for S$638m to Qingjian

    http://www.businesstimes.com.sg/real...8m-to-qingjian

    Shunfu Ville sold for S$638m to Qingjian

    This is lower than the reserve price of at least S$688m during a relaunch in January after a failed attempt in Sept

    By Lynette Khoo

    [email protected]

    @LynetteKhooBT

    May 20, 2016


    SHUNFU Ville was sold to developer Qingjian Realty for S$638 million on Thursday, marking the largest collective sale since 2007.

    This translates to a total land cost of S$747 per square foot per plot ratio on potential gross floor area, after factoring in differential premium payable to the state to top up the lease to a fresh 99-year lease and for intensification of the site, according to JLL, the sole marketing agent for the collective sale.

    Owners holding 80 per cent of the development's share value and strata area had signed the collective sale agreement. The sale price is lower than the reserve price of at least S$688 million during a relaunch in January after a failed attempt last September.

    The 358-unit Shunfu Ville, built in the late 1980s by the former Housing and Urban Development Company (HUDC) and privatised in 2013, sits on a 408,927 square foot site with about 70 years left on its lease and a plot ratio of 2.8.

    Qingjian Realty general manager Li Jun told BT: "We are also very pleased to have this opportunity to return to Bishan-Thomson. In early 2008, Qingjian Realty acquired its first land for development, a DBSS project just across the street from Shunfu Ville - Natura Loft. Now, eight years later, we have come full circle, after developments in Punggol, Sengkang and Sembawang, back to the Bishan-Thomson area."

    The site could potentially yield over 1,000 units with an average size of 1,000 sq ft.

    There has not been any government sites in the Bishan-Thomson area up for sale since October 2014.

    Karamjit Singh, international director and head of residential at JLL, noted that this is the second largest former HUDC estate sold collectively in absolute price terms as well as the largest enbloc deal in nine years. The deal offers the developer, in one stroke, a development pipeline similar to that of acquiring two or three sites from the government.

    "While this deal would likely rekindle interest among other enbloc sellers, we would expect only those with strong physical attributes like Shunfu Ville, pegged at realistic prices, to find takers among developers," he said.

    Other market watchers were more circumspect about whether this marks a revival of the enbloc market, given the punitive measures on unsold units for developers. Some condominiums such as Normanton Park, Amber Park, Spring Grove, Riviera Point and Derby Court have all tried their luck to no avail.

    A large site raises the risk of a developer having to pay the additional buyer's stamp duty (ABSD) for unsold inventory, some industry players say. Developers are required to finish building and selling a project on a residential site within five years or pay ABSD on land cost with interest.

    For collective sales, the five-year deadline kicks off from the date of the collective sale order granted under the Land Titles (Strata) Act.

    But Qingjian's Mr Li is unfazed. He believes the impact of the ABSD has caused developers to have a clearer view on demand, be it from occupiers or from investors. "At the same time, the location of Shunfu Ville in the Bishan-Thomson area has always been popular. With a clearer view of real demand, and with the long-term warm reception to the area, we believe that the size of the project will not be an issue," he said.

    SLP International executive director Nicholas Mak noted that it is "quite unlikely" to see a revival in collective sales because of the mismatch in asking prices and what developers are prepared to pay.

    With the scaling back of government land sales, Mr Mak said he expects two to three enbloc deals each year but of a smaller scale as long as the ABSD remains in place.

  7. #7

    Default Shunfu Ville estate sold for $638m

    http://www.straitstimes.com/business...-sold-for-638m

    Shunfu Ville estate sold for $638m

    May 21, 2016

    Rennie Whang


    The Shunfu Ville estate in Bishan has been sold for $638 million, with many of its owners reaping a tidy profit.

    The price works out to an average price of $1.782 million for owners of the 358-unit privatised Housing and Urban Development Company (HUDC) estate.

    That is almost 50 per cent above the typical value of a unit on its own, said Ms Yong Choon Fah, national director of capital markets at JLL, which brokered the sale.

    It is the third largest en bloc sale and the first in nearly a year since Thong Sia Building off Orchard Road. It is buyer Qingjian Realty (South Pacific) Group's first en bloc purchase in Singapore since it began developing projects here eight years ago. The deal was struck by private treaty on Thursday, after about 81 per cent of owners agreed to lower the reserve price from $688 million to $638 million.

    "We are very happy. I feel it's the right thing for Shunfu Ville - we are an ageing estate of about 30 years now, in a very good location and underutilising our plot ratio," collective sale committee chairman Woo Hon Wai told The Straits Times.

    The last collective sale of this scale was in 2007, when the former Farrer Court, another privatised HUDC estate, sold for about $1.34 billion.

    Ms Yong of JLL noted that the size of the Shunfu Ville plot offers the developer a development pipeline similar to it landing two or three sites from the Government.

    Qingjian expects to build over 1,000 condo units and even some terraced units on the 408,927 sq ft site. The land has about 70 years left on its lease and a plot ratio of 2.8.

    Qingjian expects to pay about $123 million in differential premium for intensifying land use and another $94 million to top up the lease in addition to the $638 million sale price. Overall, it is paying about $747 psf per plot ratio (psf pr) for the site, lower than the $791 psf pr the original reserve price would have entailed.

    This is comparable to prices at recent Government Land Sales (GLS) sites, noted Mr Desmond Sim, CBRE research head for Singapore and South-east Asia. The Toa Payoh site of the future Gem Residences went for $755 psf pr last year, for example.

    But whether another en bloc could come soon depends on pricing and site attributes. For developers, en bloc sales also tend to be a more tedious way of getting development sites, in comparison with GLS sites - the sale process is lengthier while developers must factor in demolition cost as well.

    Yet, given the current soft market, a longer sale process could suit a developer too, Mr Sim said.

    Shunfu Ville was first put on sale last September with a minimum price of $688 million or $791 psf pr.

    The tender closed last October with no formal bids but two letters of interest, including one by Qingjian. It was relaunched for tender at the same price in late January, again receiving interest from two developers.

    Qingjian noted yesterday that its first development project in Singapore, Natura Loft, is just across the street from Shunfu Ville. "Our prior experience in Bishan-Thomson gives us confidence in this development," said Mr Li Jun, general manager of Qingjian. The market is also now much healthier than about five years ago and the result of cooling measures is that developers now have a clearer view of buyer demand, Mr Li added. Given this and the long-term warm reception to the area, "we believe the size of the project will not be an issue", he said.

    Owner Teo Chong, 77, said he enjoyed the convenience of the project but noted that repair costs had been more onerous since the estate was privatised in 2013. Owner James Law, 74, who bought his unit for less than $230,000 back when Shunfu Ville was first launched, said he would miss the place. "We're a close-knit community and that is difficult to replicate."

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