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Thread: En-Bloc Achieved (as reported in the media)

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    Exclamation En-Bloc Achieved (as reported in the media)

    Published January 26, 2006

    Hoi Hup bags Kim Yam Mansion in $63m collective sale

    By KALPANA RASHIWALA


    PROPERTY developer Hoi Hup, part of Straits Construction Group, is understood to have bagged the 877-year leasehold Kim Yam Mansion, off River Valley Road, for about $63 million through a collective sale.

    Windfall: Owners of Kim Yam Mansion's 40 apartments will receive more than $1.5 million each
    The price works out to about $460 per square foot of potential floor area inclusive of a development charge of about $300,000.

    Owners of Kim Yam Mansion's 40 apartments will receive more than $1.5 million each, or up to three times the $500,000-$600,000 the units would have fetched if they were sold individually.

    This premium is one of the highest since en bloc sales began in Singapore in 1994. Sellers in most deals these days see collective premiums of about 30-50 per cent.

    Jones Lang LaSalle brokered Kim Yam Mansion's sale.

    The four-storey development is about 40 years old.

    It has a land area of 49,080 square feet and the site is zoned for residential use with a 2.8 plot ratio (ratio of potential gross floor area to land area).

    Based on its purchase price, Hoi Hup's breakeven cost for a new condo on the site will be about $670-$700 psf, say analysts.

    Kim Yam Mansion is the first collective sale to benefit from a new law that took effect last month, facilitating en bloc sales of estates where the original landowner/developer retains the freehold title despite giving flat owners leases ranging from 850 to just under 999 years.

    In such estates, strata titles were not issued under an old law, so the developer issued long leases instead. In the past, some of these landowners demanded hefty payments - amounting to millions of dollars - before they would consent to an en bloc sale.

    This ate into proceeds for the flat owners, sometimes effectively blocking an en bloc deal.

    Jones Lang LaSalle, Kim Yam's marketing agent, worked with real estate lawyer S K Phang to highlight the anomaly in the law to the authorities.

    This was fixed through an amendment to the Land Titles (Strata) Act that took effect on Dec 1, under which such landowners lose all rights to the land upon an en bloc sale.

    The Singapore Land Authority has said that in all, 24 sites will be affected by the rule change - but did not identify them to protect the privacy of the present unit owners.

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    Default SC Global to pay $266m for Paterson Tower

    SC Global to pay $266m for Paterson Tower

    20 Mar 06

    SC Global Developments will pay $266 million or $1,064 per sq ft per plot ratio (psf ppr) for 8 Paterson Hill, Paterson Tower.

    In a press release yesterday, SC Global said that its offer, made by wholly owned subsidiary Grandon Pte Ltd, for the en-bloc purchase of all 72 units at Paterson Tower, had been accepted by a majority of unit owners.

    Paterson Tower was put on the market in February and its marketing consultant United Premas had indicated an asking price of $280 million. The failure to achieve this price suggests that prices for such prime redevelopment sites may have plateaued.

    Prices for prime redevelopment sites had been rising steadily this year. In February, Far East Organization paid $120 million or $1,058 psf ppr for Angullia Mansion, the highest price achieved since 1997. Then, earlier this month, Hasetrale Holdings paid $138 million or $1,218 psf ppr for Eng Lok Mansions, an all-time high for a collective sale site. Both properties are within a stone's throw of Paterson Tower.

    The price for Paterson Tower may not have broken any records but owners will still walk away with about double the market price for their homes. The current market price is about $1.85-1.9 million per unit.

    The $266 million price tag includes the price for a 6,459 sq ft adjoining plot of state land. The combined land area is 121,006 sq ft and the plot ratio is 2.1. This will give the new development on the site a potential gross floor area of 254,112 sq ft and a building height of 24 storeys.

    In line with SC Global's niche development strategy, a high-end luxury residential development will be built.

    The Boulevard Residences around the corner, which was also developed by SC Global, made the headlines last year when a three-bedroom unit sold for $2,200 psf in October, a record high.

    By ARTHUR SIM

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    Property
    Published March 23, 2006


    Paterson Lodge's answer to en bloc blues
    Instead of cash for their homes, owners get a unit in new project


    By KALPANA RASHIWALA


    A COMMON bugbear for property owners selling en bloc is the difficulty they have finding a replacement property of the same size in the same location with their proceeds.



    Of one mind: (From left) Dr Phang, Mr Cunningham, Mr Quah, Mr Lim (executive director of Ace Dynamics) and Larry Koh (senior sales manager at KF Property Network)


    But the 20 owners of the freehold Paterson Lodge unanimously agreed on an answer. In a unique deal with a subsidiary of listed holding company Ace Dynamics, they will not be paid in cash for their units. Instead, they will get a new unit in the project that will go up on their land.

    What's more, it will be slightly bigger than their old unit, on the same floor and facing the same view.

    What makes the deal different from a handful of similar cases in the 1990s - like Eng Kong Green and Char Yong Gardens - is that the land on which Paterson Lodge stands will not be transferred to the developer until the new project is completed and the existing owners have received titles to their new apartments.

    This is to protect the owners in case the developer goes bust.

    In the meantime, the owners have given the developer power of attorney so it can proceed with the 35-unit project.

    Apart from the 20 exchange units that Ace Dynamics must give the owners, it can sell the remaining 15 units.

    It took the existing owners of Paterson Lodge almost two years to iron out the deal, working with Ace Dynamics, property agent Knight Frank and real estate lawyer SK Phang of Phang & Co.

    'An exchange like this requires the unanimous consent of owners,' said Knight Frank executive director Foo Suan Peng.

    'This means it is easier to replicate this collective exchange in estates with a smaller number of units, and very importantly, where owners are very comfortable with one another and cooperative. This isn't a mere financial deal where owners walk away and need not see their neighbours again.'

    Ace Dynamics executive director Lim How Boon said: 'Not a single cent changed hands. And the owners get back the chance to stay in their units.'

    Paterson Lodge sales committee chairman Quah Soo Gee said that the collective sale exchange allows all the owners to keep their prestigious address, besides significantly improving the value of their units.

    Although three-quarters of the owners do not live in the development, they liked the deal as the rental value of the new apartments will be higher than that of the old ones they're giving up, said Mr Quah, an architect by training.

    Agreeing with this, fellow sales committee member John Cunningham, who has owned his unit for about five years, described the collective exchange as an 'entrepreneurial solution' for owners who like living in the same area after they've done an en bloc sale.

    'It is a nice exchange. We're getting back much nicer apartments than the units we exchanged in a nicer environment and with facilities,' said Mr Cunningham, creative director of ACTs of Life, which conducts speech, dance and arts classes and workshops.

    'If I don't do an exchange, it (my apartment) is going to be sold out from under me and I won't be able to live in this area - even if I screamed all the way to the STB (Strata Titles Board). This is the better of two evils.'

    This is how the deal was structured. The existing 20 units in six-storey Paterson Lodge comprise 10 apartments of 743 sq ft and 10 others of 926 sq ft. The new Paterson Lodge that Ace Dynamics will build will be a 10-storey development with 35 units ranging in size from 861 sq ft to 1,033 sq ft.

    Ace Dynamics will have to pay a development charge of about $4 million for the right to enhance the use of the site by building a new project with a gross floor area (GFA) of 32,472 sq ft - about 57 per cent more than the existing GFA.

    On the top floor will be three penthouses. The project will also have a swimming pool, jacuzzi, gym and BBQ pits - none of which are present at today's Paterson Lodge.

    The current values of the existing apartments range from $630,000 to $800,000. The new units, assuming a price of $1,200 psf on average currently, will be worth about $1 million to $1.24 million.

    Assuming prime district residential property prices escalate to $1,700 psf in two to three years, when units in the redeveloped project are handed over to the owners, the replacement units could be worth $1.5 million to $1.8 million, says Knight Frank.

    'This works out to a collective exchange premium of at least 100 per cent for the owners,' said Mr Foo.

    The advantage to the developer is that it does not have to fork out a large amount of money to buy the land upfront, thus saving on finance costs and cash flow.

    It basically only pays for the construction cost and fees.

    Lawyer SK Phang said the Paterson Lodge deal is the first collective exchange since en bloc rules were amended in late 1999 to allow collective sales without unanimous approval. 'However, for a deal like this to go through, you have to get unanimous approval, otherwise it gets messy.'

    Current en bloc sale legislation provides that minority owners who object to a collective sale must be given a cash payment option. To determine the cash price, the most transparent method is to hold a tender and use the highest bid as the basis. However, the top bidder may not want to do an exchange, and may be unhappy if his bid is used only to serve as a pricing peg for another developer to do an exchange, Dr Phang explained.

    Hence, collective exchanges are best in developments with a relatively small number of like-minded owners.

    Ace Dynamics' Mr Lim said his company is looking at other such deals in prime areas.

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    Default Thomson en bloc sale fetches $156.3m

    Published April 1, 2006


    Thomson en bloc sale fetches $156.3m

    By ALEXANDRA HO


    THE collective sale fever continues, this time outside the downtown prime areas.


    Owners of three properties in the Thomson area - Lock Cho Apartment, Comfort Mansion and a 4-storey walk-up apartment - fetched $156.3 million after they joined forces to collectively sell their properties by tender.

    At that price tag, the freehold land works out to be about $344 per square foot per plot ratio (psf ppr), after factoring in the purchase price of a plot of state land next to it for about $14.8 million and half a million dollars in development charge.

    The price fetched is a tad lower than the $160 million, or around $350 psf ppr, that the owners had hoped for.

    Property heavyweight City Developments (CityDev) beat two other developers to win the site in a tender, said Credo Real Estate, which handled the deal.

    The three developments, at Jalan Datoh and Jalan Raja Udang, currently have a total of 165 units.


    They have a combined land area of about 137,479 sq ft and 40,526 sq ft of state land. With a plot ratio of 2.8, it could yield about half a million sq ft of gross floor area (GFA), with a height control of up to 36 storeys - making it one of the largest collective sale projects launched this year in terms of GFA.

    Credo reckons that CityDev could break even at around $600 psf and expects around 400 condominium units, each about 1,200 sq ft.

    'These three adjoining sites were extremely attractive because collectively, it will provide us with the opportunity to amalgamate the sites to create a sizable land area for redevelopment.

    'Such collective en bloc opportunities are rare,' said CityDev's group general manager Chia Ngiang Hong in a statement.

    Each seller stands to get between $840,000 and $1.3 million, Credo said, which is a 60 to 90 per cent premium over their current market values.

    Credo's executive director Tan Hong Boon said that including this sale, the total collective sale tally for the first quarter of this year is $1.2 billion, with 17 projects sold. Mr Tan said that figure is already more than half of 2005's total of $2.26 billion.

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    Evan Lim & Co beats three other bidders for prime site in en bloc sale


    By ALEXANDRA HO


    ANOTHER prime property has gone for collective sale - for $32 million - showing that momentum is continuing to pick up in real-estate en-bloc deals.



    This time, it is The Esquire, an 11-storey, 30-unit apartment block on Mount Elizabeth, near the famed hospital and behind The Paragon Shopping Centre. Its owners - both investors and owner-occupiers - had failed in earlier attempts to sell the entire block.

    Evan Lim & Co, a general building contractor and property developer, beat three other bidders with its $32 million offer.

    The price buys a building on a land area of about 16,067 sq ft and a gross plot ratio of 2.8.

    The present structure can be replaced by a building of up to a maximum of 36 storeys.

    In addition to the $32 million, a $3.59 million development charge is payable. Taking that into account, Evan Lim's purchase price is about $791 per square foot per plot ratio (psf ppr).

    'This is the highest residential land rate achieved in the Mount Elizabeth/Emerald/Cairnhill location in recent years, and is the third highest in the vicinity of Orchard Road, just after the recent sales of the larger Angullia Mansion and Habitat II,' said Tan Hong Boon, executive director of Credo Real Estate, which brokered the deal.


    Angullia Mansion went to Far East Organization for a land cost of $1,058 psf ppr inclusive of development charges earlier this month, while Habitat II was sold to Wheelock Properties last year for $876 psf ppr.

    Mr Tan said Evan Lim could build 20 luxury apartment units with an average 2,000 sq ft size, or 60 boutique units of 700 sq ft each.

    He added that each of the 30 apartment owners will get about $1.07 million from the sale, representing a 65 per cent premium over what the apartments would have fetched individually.

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    Published February 9, 2006

    MCL Land buys Waterfall Gardens
    Price works out to $550 psf ppr, inclusive of charges, premium

    By KALPANA RASHIWALA

    MCL Land has bought the freehold Waterfall Gardens in Farrer Road and two smaller adjoining sites for $131.75 million. The price works out to $550 per square foot of potential gross floor area inclusive of development charges and a development premium payable to the state to maximise the site's redevelopment potential.

    New 12-storey condo coming up: MCL Land could build about 200 units averaging 1,800 sq ft each and is expected to get the project launch-ready by the fourth quarter of this year
    MCL Land's breakeven cost for a new 12-storey condo could be about $800 to $850 psf. The total land area is 160,932 sq ft.

    The group is buying the property through an en bloc deal from its owner Farfor Investments, controlled by members of a family with Indonesian and Hongkong connections, although some family members are now Singapore citizens.

    The family members go by two surnames - Tan and Lim.

    This is the same family that developed the Shearesville project in Holt Road and bought one block of Cuscaden Residences for $1,028 psf in early 1999 from Hotel Properties - and later sold it to the Hong Leong Group and Japan's Mitsui group for $1,380 psf in August 2000.

    Waterfall Gardens was sold through a private tender handled by DTZ Debenham Tie Leung. It closed late last month and attracted a handful of bids. Farfor's offer was the highest.

    Farfor originally bought Waterfall Gardens, with a site area of 138,016 sq ft, in 1999 for $102 million. It later bought a remnant strip of private land next door for a couple of million dollars, sources say. And it recently purchased an adjoining state site of 20,602 sq ft for about $7 million.

    These three parcels, involved in the latest sale to MCL Land, add up to 160,932 sq ft. The site is zoned residential with a 1.6 plot ratio - ratio of potential gross floor area to land area - and has a 12-storey height restriction.

    MCL Land could build about 200 units averaging 1,800 sq ft each and is expected to get the project launch-ready by the fourth quarter of this year.

    This weekend MCL is officially launching its Esta freehold condo in Katong. It has sold about 250 units in the 21-storey development since last month and is expected to raise the average price from $700 psf to $710 psf. Another MCL project that is expected to hit the market later this year is an exclusive low-rise condo comprising fewer than 50 units in Fernhill Road.

    For Waterfall marketing agent DTZ, this is the second major investment sale deal it has announced in as many days. It also handled the $120 million collective sale of Angullia Mansion to Far East Organization.

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    Published December 28, 2005

    PROPERTY REVIVAL
    Bt Sembawang bags Holland site for $49m
    Including estimated $6.1m development charge, price works out to $541 psf per plot ratio

    By KALPANA RASHIWALA

    IN yet more evidence of the pick-up in the property market, Bukit Sembawang has just bought its third residential development site this year - Carlton Terrace along Holland Road, near the Botanic Gardens.

    Carlton Terrace along Holland Road: Purchase of this development site is Bukit Sembawang's third this year
    The listed property group, linked to the Lee family of OCBC, yesterday announced it clinched the freehold property through a $49 million collective sale.

    Including an estimated development charge (DC) of about $6.1 million, Bukit Sembawang's purchase price for Carlton Terrace works out to a land cost of $541 psf of potential gross floor area. A new condo on the 72,718 sq ft site may breakeven at around $800 psf, say market watchers.

    The Carlton Terrace site is zoned for five-storey residential use with a 1.4 plot ratio (ratio of potential gross floor area to land area). Knight Frank brokered the sale. Bukit Sembawang is planning to redevelop the property into a new condo with about 85 units averaging 1,200 sq ft on the site.

    Bukit Sembawang's two earlier land purchases this year were the Woodleigh Grove plot in the Upper Serangoon area and a site at Lengkok Angsa just off Paterson Road. Like the latest Carlton Terrace purchase, the two earlier acquisitions involved collective sales.

    The collective sale market has been hotting up this year, reflecting developers' appetite for prime freehold sites.

    The group's July purchase of Woodleigh Grove for $29.8 million was its first property acquisition since 1998. The price for the 41,694 sq ft freehold site worked out to $280 psf per plot ratio (psf ppr) inclusive of a nearly $3 million DC. That site has a 2.8 plot ratio, and Bukit Sembawang is expected to build on it a 17-storey condominium with about 100 units.

    The Lengkok Angsa site - comprising 32 landed houses - which Bukit Sembawang clinched for $117.2 million translates to a land price of about $650 psf ppr including DC, a substation on the site and an adjoining road strip. The site has a 2.1 plot ratio, and Bukit Sembawang is planning to build on it a 24-storey luxury condo with about 100 mostly large units - three and four bedders with an average size of 1,500 sq ft or even bigger.

    Bukit Sembawang is expected to launch the condos on the Lengkok Angsa and Woodleigh sites next year.

    The group is dubbed the 'King of Seletar Hills', after its massive landbank in the location. After developing numerous projects in the area over the years, it still has about four million sq ft of freehold land - all designated for landed housing - in the Sembawang Hills area.

    The collective sale market has been hotting up this year, reflecting developers' appetite for prime freehold sites following strong end-user demand from home buyers in the luxury residential segment.

    More than 30 collective sales have been transacted so far this year, totalling over $1.9 billion, more than double the $722 million for 17 deals last year.

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    Published December 29, 2005

    Auric Pacific acquires Bukit Timah Mansions

    AURIC Pacific, part of the Lippo Group, said yesterday it has bought Bukit Timah Mansions through a $15.4 million en bloc sale. Auric did not give the site area but sources say it is about 20,000 sq ft.

    Factoring in an estimated development charge of about $6 million, the acquisition price works out to a land cost of about $510 per square foot of potential gross floor area. The site is zoned for residential use with a 2.1 plot ratio (ratio of potential gross floor area to land area).

    It can be developed into a smallish apartment project with about 35 units averaging 1,200 sq ft.

    Bukit Timah Mansions, at 327 Bukit Timah Road, is between Balmoral Road and Keng Chin Road. The existing property is a seven-storey block with 10 apartments. There are also car parking lots and a swimming pool.

    Auric is expected to redevelop the site as soon as it receives the necessary approvals. The company said the acquisition is in line with its diversification plans.

    The group's existing core business is in food manufacturing, wholesale distribution of food and allied fast-moving consumer goods and investment holding.

    Auric has identified property investment, development, management and services and related activities in Singapore and abroad as an additional core business to boost profitability.

    In May, Auric - which is perhaps best known for its Sunshine brand of bakery products - said it planned to buy Newton Heights, a freehold property.

    Auric said then it would acquire a related company, HKCL Investments, which had signed an agreement in February to buy Newton Heights in a collective sale for $43.6 million.

    The parent of HKCL is an associate of the Lippo Group, which in turn controls Auric.

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    Published January 6, 2006

    PROPERTY MARKET REVIVAL
    Emerald Lodge sold to HK firm for $45.2m
    The Esquire at Mt Elizabeth is on the market again for almost $32m

    By KALPANA RASHIWALA

    EN BLOC activity continues to heat up in prime District 9, with the $45.2 million sale of Emerald Lodge in Emerald Hill Road and The Esquire at Mt Elizabeth again on the market, for almost $32 million.

    Nod for sale: Emerald Lodge's sale is subject to approval by the Strata Titles Board
    The buyer of freehold Emerald Lodge is understood to be a private investment company controlled by a low-profile Hong Kong family, reflecting renewed interest by Hong Kongers in Singapore property.

    The sale is subject to approval by the Strata Titles Board as unanimous approval from Emerald Lodge's owners has yet to be secured, as well as to the purchase of an adjoining 3,339-sq-ft plot of state land. Knight Frank brokered the deal.

    The $45.2 million purchase price works out to $803 psf per plot ratio (psf ppr) inclusive of development charge (DC). With the purchase of the state site, Emerald Lodge's buyer can potentially reduce its land price to $750 psf ppr.

    A new apartment project on the site could break even at about $1,120 psf.

    Emerald Lodge has a site area of 26,900 sq ft. The combined site - including the state land - of 30,239 sq ft can be redeveloped into a new project with about 50 units averaging 1,200 sq ft.

    Under Master Plan 2003, the site is zoned for residential use with a 2.1 plot ratio - the ratio of potential gross floor area to land are. At $45.2 million, the owners of the 31 existing apartments stand to pocket in excess of 50 per cent more than the individual value of their units.

    Over in the Mt Elizabeth area, the $32 million price indicated for The Esquire apartment block is identical to what the owners sought in May last year when they last offered their homes for collective sale.

    'We received an offer that was close to what the owners were seeking, but sensing that the market was going to improve, the owners decided to wait for a while,' says Credo Real Estate executive director Tan Hong Boon, whose firm is handling the collective sale.

    The $32 million price tag works out to $791 psf ppr including a $3.59 million DC. The break-even cost for a new project on the site could be about $1,150-$1,200 psf. The property has a 16,067-sq-ft freehold site area and is zoned for residential use with a 2.8 plot ratio under Master Plan 2003, with a maximum height of 36 storeys.

    The site should appeal to boutique developers. It can be redeveloped into a new project of some 36 units averaging 1,200 sq ft.

    Credo suggests an alternative use for the property - redeveloping it into serviced apartments for long-stay guests or short-stay visitors who come to Singapore for treatment at Mt Elizabeth Hospital and Medical Centre. However, such a use would be subject to official approval.

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    Published January 27, 2006

    SC Global buys site at Martin Rd for $17.8m

    DEVELOPER SC Global, better known for its high-end residential projects, is paying $17.8 million for a Martin Road freehold property that can be redeveloped on a residential-cum-commercial basis.


    Through its wholly owned subsidiary Kimmingston Pte Ltd, SC Global struck the deal with Hock Giap Company Pte Ltd for the 17,664 sq ft property at 38 Martin Road.

    With an estimated development charge of $9.1 million and a gross plot ratio of 2.8, the cost works out to about $544 per sq ft per plot ratio.

    An eight-storey warehouse building now sits on the site, with tenants. It has a zoning of residential, with commercial enterprises on the first floor.

    SC Global owns a vacant freehold site next to it measuring 26,813 sq ft with a plot ratio of 2.8. It could combine that site with its newest acquisition, giving a land area of 44,477 sq ft.

    That could be developed into a 15-storey residential and commercial development with a potential gross floor area of 124,536 sq ft.

    Other residential developments near the site include CapitaLand's 43-storey Rivergate and City Development's The Pier at Robertson.

    Kimmingston has put down 10 per cent of the purchase price for 38 Martin Road and is expected to pay the balance in 12 weeks. The acquisition is expected to be completed in April. Meanwhile, SC Global has called an EGM on Feb 15 for shareholders to vote on whether to allot and issue 5,754,000 placement shares to Mass Noble Ltd at an issue price of $1.35.

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