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Thread: UOL associate to buy Nanak Mansions for S$201m

  1. #1
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    Default UOL associate to buy Nanak Mansions for S$201m

    Nanak Mansions in Meyer Road on the market with S$200m tag

    September 14, 2017

    Kalpana Rashiwala


    THE fourth freehold residential site in the Meyer-Amber roads vicinity has come on the market this year.

    Unlike the earlier three offerings, this one has been quietly released for sale by its owners, who are seeking around S$200 million. The 109,629 square foot plot on Meyer Road was once part of a small golf course.

    Currently on the site is Nanak Mansions, a low-rise development completed in the 1980s comprising 36 maisonettes, each with either four or five bedrooms. Their strata areas range from 2,551 sq ft to 3,584 sq ft.

    The units belong to members and companies of a low-profile Singaporean Indian family, all of whom have consented to sell their units. The family developed Nanak Mansions but none of the family members live in the units. All 36 units have been rented out.

    Assuming the site fetches S$200 million, this works out to about S$1,420 per square foot per plot ratio (psf ppr), inclusive of an estimated development charge of S$18 million for intensification of the site.

    A seasoned mid-sized developer estimates the break even cost at about S$1,950 psf and a likely average selling price of around S$2,200-2,300 psf, depending on the profit margin sought by the successful bidder. "Not outrageous - but a reflection of future pricing as with most residential bids these days."

    The Nanak Mansions site may be redeveloped into a five-storey project with a maximum gross floor area (GFA) of 153,482 sq ft - which can accommodate up to 203 units based on an average unit size of 70 sq metres (around 753 sq ft) GFA.

    Under the Urban Redevelopment Authority's Master Plan 2014, the site is zoned for residential use with 1.4 plot ratio (ratio of maximum gross floor area to land area).

    Property consulting group JLL is marketing Nanak Mansions through a tender that will close on Sept 26.

    The S$1,420 psf ppr price for the Nanak Mansions site is close to the the S$1,409 psf ppr achieved in July for another freehold Meyer Road property - The Albracca collective sale. This is a smaller site of 23,400 sq ft but it can be redeveloped into a taller condo project of about 20 storeys; The Albracca is also closer to the Tanjong Rhu area and is near Katong Park MRT Station; it has a 2.1 plot ratio.

    Commenting on the Nanak Mansions site, JLL senior consultant Karamjit Singh said that it is next to a large, popular green lung and playground of about 70,000 sq ft - almost the size of a football field.

    While residents in the new low-rise project that will come up on the Nanak Mansions site will not be able to count on sea views as the project will be blocked by the taller condos on the other side of Meyer Road, the subject site is nestled amid two-storey bungalows.

    "The new development on the Nanak Mansions site could potentially enjoy "lovely views across the large Mountbatten/Goodman Road landed estate", said Mr Singh.

    "The developer would do well to design large apartments here catering to the affluent catchment of landed property and condo owners who might prefer an upmarket, quiet and low-rise condominium away from the ECP noise."

    The site is also 400 metres from the upcoming Tanjong Katong MRT Station on the Thomson-East Coast Line.

    As Nanak Mansions is not a collective sale, it will not be subject to approval by the Strata Titles Board or High Court. "Hence the developer has the certainty of completion of the site purchase within three months," said Mr Singh." Julian Davison, a Singapore-based architectural historian and author, confirmed that the site was part of a golf course between World Wars I and II; the golf course stretched from Crescent Road to Broadrick Road. "The earliest mention of the golf course in the newspapers was in 1921 - the club was already up and running at that time. It survived the war, but only just: the last mention was in 1946."

    Said Mr Singh: "The Nanak Mansions site is believed to have been part of the properties owned by the family of Manasseh Meyer, a well-known Jewish British philanthropist after whom Meyer Road is named."

    Market watchers note that there will be three tender closings for freehold residential sites along Meyer and the nearby Amber Road in the next few weeks. The other two are for the 213,670 sq ft Amber Park collective sale site, which has a reserve price of S$768 million or S$1,284 psf ppr; and 12 Amber Road, an estate sale of a 22,800 sq ft plot with an asking price of S$56.6 million to S$61 million (S$1,199-1,268 psf ppr). Both sites have 2.8 plot ratios.

    A collective sale is also in the works at another Meyer Road condo, Hawaii Tower, which has a freehold land area of about 192,000 sq ft.

  2. #2
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    One more potentially going. Not a bad timing as the MRT works might turn off some tenants in this development. Used to pick up tennis balls along the road from this development when I was a kid.

    Nothing compared to Hawaii Tower which will shape the landscape of Meyer Road with its massive plot of land. 1 and 9 zeros behind onwards pricing. All the best!

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    Goodbye Nanak mansion. UOL will no doubt do a good job!

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    Default UOL associate to buy Nanak Mansions for S$201m

    UOL associate to buy Nanak Mansions for S$201m

    Winning bid is from Secure Venture Development; price works out to S$1,429 psf ppr inclusive of DC, says JLL

    Sep 29, 2017

    Tan Hwee Hwee



    AN associated company of UOL Group is set to purchase en bloc the freehold property of Nanak Mansions at S$201.08 million after putting in a winning bid in a tender.

    JLL's senior consultant Karamjit Singh said that the tender for Nanak Mansions attracted six bids. "The developers found the site very attractive, with its prime Meyer Road address, a large park next door, and an MRT station close by."

    He added that the price of S$201 million works out to S$1,429 per square foot per plot ratio (psf ppr) inclusive of development charge. "This is slightly above the last benchmark set for Albracca for S$1,409 psf ppr achieved in July this year." JLL brokered both the deals for Albracca and Nanak Mansions.

    Nanak Mansions at 92-128 Meyer Road Singapore occupies about 18,185 square metres. The low-rise development completed in the 1980s is the fourth freehold residential site in the Meyer-Amber roads vicinity to have come on the market this year. It comprises 36 maisonettes, each with either four or five bedrooms with strata areas ranging from 2,551 sq ft to 3,584 sq ft.

    The freehold site with a gross plot ratio of 1.4 based on 2014 Master Plan is earmarked for residential development.

    The bid from Secure Venture Development (No 1) has been accepted on Sept 28, 2017 by all the subsidiary proprietors of the units within the freehold development.

    Secure Venture Development (No 1) Pte Ltd, will pay up 10 per cent of the consideration, including the S$1 million tender fee paid on bid submission, within seven business days from the acceptance of the offer.

    The other 90 per cent of the purchase completion will be paid up on legal completion of the deal.

    UOL said that the deal is expected to be completed no later than three months from the date of the acceptance of the offer.

    Secure Venture Development is a 50:50 joint venture company between UOL Venture Investments Pte Ltd and Kheng Leong Co (Pte) Ltd.

    The joint venture company will re-develop the freehold site acquired and also acquire a private road of about 910 square metres at Jalan Nuri next to the property, if the subsidiary proprietors of Nanak Mansions and their associates exercise a put option.

    UOL's shares closed at S$8.12, down five cents.

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    Nanak Mansions in Meyer Road sold en bloc for $201.1m

    Sep 29, 2017

    Jacqueline Woo


    The freehold Nanak Mansions development in upmarket Meyer Road has been bought by an associate of UOL Group in a $201.1 million en bloc deal.

    It was the fourth freehold residential site in the Meyer-Amber Roads vicinity to have come on the market this year.

    UOL told the Singapore Exchange in a filing yesterday that its 50 per cent-owned associate, Secure Venture Development (No. 1), will redevelop the 10,185 sq m site, which has a gross plot ratio of 1.4.

    "Meyer Road is a highly coveted address. Given its rare location right next to a park, we see the opportunity to develop this site into a luxury and spacious project which can be dubbed as our 'Nassim Residences of the East'," said UOL deputy group chief executive Liam Wee Sin.

    The sale will be funded mainly by bank borrowings and internal resources.

    There is also a private road next to the property of about 910 sq m in Jalan Nuri. This is owned by some subsidiary proprietors of the development and their associates.

    These owners have been given a put option, which could result in Secure Venture having to acquire the road land at a yet-to-be-determined price if certain conditions are met, said UOL.

    Nanak Mansions, a low-rise development completed in the 1980s, comprises 36 maisonettes, each with either four or five bedrooms. It is 400m from the upcoming Tanjong Katong MRT station on the Thomson-East Coast Line. The units belong to members and companies of a low-profile Singaporean Indian family, all of whom have consented to sell their units, according to a Business Times report earlier this month. The family developed Nanak Mansions but no family members live there. All 36 units have been rented out.

    Mr Karamjit Singh, senior consultant at property consulting group JLL, noted that the site may be redeveloped into a five-storey project with a maximum gross floor area of 153,482 sq ft. This means it can accommodate a maximum of 203 units with an average size of around 700 sq ft in terms of gross floor area.

    He said the $201.1 million price tag works out to $1,429 per sq ft per plot ratio (psf ppr), after factoring in development charges payable upon redevelopment. This is not far from the $1,409 psf ppr obtained in July for another property in Meyer Road, The Albracca, a 23,400 sq ft site sold for $69.1 million.

    "Meyer Road is easily regarded as the best part of Singapore's East Coast," Mr Singh told The Straits Times, adding that this spells good potential especially for an upmarket development. The Nanak Mansions sale was marketed by JLL.

    UOL said the acquisition will not have any material effect on the net tangible assets per share or earnings per share of the firm for the financial year ending Dec 31.

    Shares of the group closed 0.6 per cent or five cents lower at $8.12, before the announcement was made.

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