View Full Version : City Plaza En Bloc
PropVestor
27-07-17, 10:25
This is not entirely unexpected and a welcome catalyst to further boost Paya Lebar Central area. PPR residents and Phase II folks better watch out for this development. This is FH.
I can imagine Landlease calling ADIA for a bid as well? Build one more bridge or underground to PLQ. Make it a super mega development.
http://www.straitstimes.com/business/city-plaza-unit-owners-looking-to-sell-en-bloc
anythingwhatever
27-07-17, 13:22
This is not entirely unexpected and a welcome catalyst to further boost Paya Lebar Central area. PPR residents and Phase II folks better watch out for this development. This is FH.
I can imagine Landlease calling ADIA for a bid as well? Build one more bridge or underground to PLQ. Make it a super mega development.
http://www.straitstimes.com/business/city-plaza-unit-owners-looking-to-sell-en-bloc
Power. And there's already a bridge between City Plaza and One KM also.
Sounds like a JEM Giant is coming... The 4th would be Tg Katong Complex. :)
They will meet on Saturday to discuss possible collective sale, with asking price of up to $1 billion
Collective sales fever is spilling into the commercial sector as many City Plaza unit owners prepare for their first annual general meeting in years on Saturday, to discuss a sale with a possible price tag of as high as $1 billion.
The 18-storey freehold building near Paya Lebar MRT station was completed in 1972 and is known for its wholesale shops, which mainly sell apparel.
The building has 531 units, including 66 residential units, according to Mr Derrick Chan, a City Plaza unit owner who called for the meeting.
Mr Chan told The Straits Times yesterday that he did so as "it is the right time now".
He said: "There is en bloc fever now and Paya Lebar is developing into a business centre. The building is over 40 years old. If we do not go en bloc now, the cost of maintenance will be extremely high."
Mr Chan, a businessman who owns six units at City Plaza totalling 5,400 sq ft, said most of his units were tenanted, but he did not think that the "trend of wholesale clothing is in our favour".
"Retail sales are suffering, and wholesale retail is being taken over by (Chinese online site) Taobao. It is not economical to have a shop space and rental is very low."
Mr Chan added that unit owners are eyeing a sale price of between $800 million and $1 billion. More than 100 people are expected at the meeting. He hopes a collective sales committee can then be formed.
More than half of the unit owners he has spoken to have expressed interest in a collective sale, he said.
One of them, Mr James Tan, said rentals have been falling. He bought his 20 sq m unit in the early 1990s and collected a monthly rental of about $1,200. At the peak, he was getting $1,800 but lately, tenants have been seeking rentals of $1,000 to $1,200.
"Rental rates today are going back to those of the 1990s," he said, adding that even if he were to sell the unit, he did not know if the buyer could get a rental rate that would cover the instalment.
Dr Lee Nai Jia, head of research at Edmund Tie and Company, said that interest in collective sales of residential properties has spilt into the commercial sector, citing the successful collective sale of Citimac. The freehold industrial complex near Tai Seng MRT station is reportedly being sold for $430.1 million.
Dr Lee noted that Katong Shopping Centre also launched a collective sales bid earlier this year, but did not manage to meet its reserve price of $630 million.
"The Paya Lebar area is likely to become a new growth cluster, with Paya Lebar Quarter catalysing the development of the area. Hence, there will be keen interest for City Plaza," he said.
However, he noted that the asking price range of $800 million to $1 billion is "on the high side", as developers have other viable options.
Any idea how big is their site area? Am wondering how they derived the price and how much it works out to per sq ft per plot ratio. The last FH site sold that's comparable would be Lion City I guess.
the most difficult issue is the apportionment method to be used between residential and commercial properties
That might be a bone of contention and a stumbling block. It would be interesting to see how they work it out. Have there been any other mixed developments of this size that have successfully gone enbloc?
PropVestor
01-08-17, 12:01
The owners' shares based on size of the unit(s) will take care of that. If the sellers are savvy, they will base in on psf of Katong Regency and PLQ as a benchmark estimate. An estate/en bloc broker will make those calculations for them.
My estimate for this FH mixed development land can be sold for easily above $800 million.
I understand they are seeking 800 million to 1 billion. But since residential units have smaller share value usually, I wonder if the price will work out to be good enough for the residential owners as they will likely want a replacement unit in same vicinity. Possibly FH of same or nearly same size. This is a goldmine . FH in this area is extremely hard to come by except by enbloc. As Paya Lebar develops further I think the land price will only increase. I heard from a friend who owns a unit that there are a few owners who own multiple units including Second Chance properties. They need to support for it to succeed.
Btw I heard that it's not zoned as Mixed development but rather Commercial. The developer can skip Residential altogether and just build office with retail. Would that get them a better price ?
PropVestor
02-08-17, 18:50
Btw I heard that it's not zoned as Mixed development but rather Commercial. The developer can skip Residential altogether and just build office with retail. Would that get them a better price ?
A blue commmercial site can have residential, hotel or serviced apartments as a mix. For retail or office use only, I think developers are really missing out. Why? A mixed development provides a risk spread as opposed to 100% commercial. You can read more about this in the PLQ/PPR thread. It's about building an ecosystem within a development that supports each other.
Some recent blue sites which contained or may contain residence are Beach Road site under tender and also PLQ itself.
I really hope this en bloc goes through as City Plaza is a real juxtaposition against the upcoming landscape around PLQ. Tanjong Katong complex will hopefully be a hotel connected to the future PLQ office building.
2 cents,
PropVestor
propertychap
02-08-17, 19:04
Will all these developments have spill over effects to bring about price increase in eunos and kembangan areas.?
PropVestor
02-08-17, 19:35
Will all these developments have spill over effects to bring about price increase in eunos and kembangan areas.?
If you are one mrt stop away from PLQ, I'm sure there will be some effect on prices. Key question is how much and when which I cannot answer. It all depends on the tenants of PLQ and the success of the overall PLC proposition.
RCR is different from OCR but microlocation counts more each increasing day.
2 cents,
PropVestor
The transformation of PL includes the Geylang Serai area so it's likely it will spillover. When the Eunosville site is redeveloped we should see this translate into higher prices for the area. As for CP , developers should find the site attractive as it being a Commercial site they have options. I get what you mean. The Lion City site was also zoned commercial( blue site) and UOL decided to do a mixed development.AXA Tower is up for sale. Of course it's Shenton Way location is superior to CP's but it's LH with 31 years gone. They are asking for above valuation. It would be interesting to see how that goes.
http://www.businesstimes.com.sg/companies-markets/perennial-led-consortium-to-put-axa-tower-up-for-sale-at-no-less-than-s165b
propertychap
03-08-17, 08:31
I quite like the kembangan area near the mrt which is not so dense and quiet. The price of the condo there has not moved much. Any one has views on whether it is good to pick up a unit in the older development like kembangan plaza..?
Amber Woods
03-08-17, 08:56
I quite like the kembangan area near the mrt which is not so dense and quiet. The price of the condo there has not moved much. Any one has views on whether it is good to pick up a unit in the older development like kembangan plaza..?
Kembangan area is like a little Malay village with many middle class living there and with plenty of Muslim food stalls. If you like to embrace the Malay's culture, this is a good place to stay.
I quite like the kembangan area near the mrt which is not so dense and quiet. The price of the condo there has not moved much. Any one has views on whether it is good to pick up a unit in the older development like kembangan plaza..?
Avoid Kembangan Plaza, the noise from the road and MRT can kill
tonymontana
03-08-17, 10:16
Avoid Kembangan Plaza, the noise from the road and MRT can kill
agree, unless proximity to MRT is a primary overriding concern, i'd skip that area and go a bit further cos teluk kurau is a lot more pleasant and quiet.
PropVestor
03-08-17, 10:35
I quite like the kembangan area near the mrt which is not so dense and quiet. The price of the condo there has not moved much. Any one has views on whether it is good to pick up a unit in the older development like kembangan plaza..?
My 2 cents advice is to stick with proxy D15 circa the Haig Road area which is still quite close to all the action around PL. I think the prices there have not really moved much and will enjoy the same 'spill over' effect described by you. Having peace and quiet in a built up area near to an MRT Exchange (2 or more lines) is a fallacy.
D15 still reigns as the highest number of transactions in Singapore and according to Property Guru poll, it is still number one in terms of desirability for the PG poll.
Why not wait till PPR phase II launch? God knows when they will finally open their showflat again but likely to be till 2018 when the offices and retail mall structures facade are up. PPR will have underground substation access in future which is written by Landlease S&P agreement, not sure that will tickle you?
PropVestor
City Plaza unit owners looking to sell en bloc
JUL 27, 2017
They will meet on Saturday to discuss possible collective sale, with asking price of up to $1 billion
Lee Xin En
Collective sales fever is spilling into the commercial sector as many City Plaza unit owners prepare for their first annual general meeting in years on Saturday, to discuss a sale with a possible price tag of as high as $1 billion.
The 18-storey freehold building near Paya Lebar MRT station was completed in 1972 and is known for its wholesale shops, which mainly sell apparel.
The building has 531 units, including 66 residential units, according to Mr Derrick Chan, a City Plaza unit owner who called for the meeting.
Mr Chan told The Straits Times yesterday that he did so as "it is the right time now".
He said: "There is en bloc fever now and Paya Lebar is developing into a business centre. The building is over 40 years old. If we do not go en bloc now, the cost of maintenance will be extremely high."
Mr Chan, a businessman who owns six units at City Plaza totalling 5,400 sq ft, said most of his units were tenanted, but he did not think that the "trend of wholesale clothing is in our favour".
"Retail sales are suffering, and wholesale retail is being taken over by (Chinese online site) Taobao. It is not economical to have a shop space and rental is very low."
Mr Chan added that unit owners are eyeing a sale price of between $800 million and $1 billion. More than 100 people are expected at the meeting. He hopes a collective sales committee can then be formed.
More than half of the unit owners he has spoken to have expressed interest in a collective sale, he said.
One of them, Mr James Tan, said rentals have been falling. He bought his 20 sq m unit in the early 1990s and collected a monthly rental of about $1,200. At the peak, he was getting $1,800 but lately, tenants have been seeking rentals of $1,000 to $1,200.
"Rental rates today are going back to those of the 1990s," he said, adding that even if he were to sell the unit, he did not know if the buyer could get a rental rate that would cover the instalment.
Dr Lee Nai Jia, head of research at Edmund Tie and Company, said that interest in collective sales of residential properties has spilt into the commercial sector, citing the successful collective sale of Citimac. The freehold industrial complex near Tai Seng MRT station is reportedly being sold for $430.1 million.
Dr Lee noted that Katong Shopping Centre also launched a collective sales bid earlier this year, but did not manage to meet its reserve price of $630 million.
"The Paya Lebar area is likely to become a new growth cluster, with Paya Lebar Quarter catalysing the development of the area. Hence, there will be keen interest for City Plaza," he said.
However, he noted that the asking price range of $800 million to $1 billion is "on the high side", as developers have other viable options.
PropVestor
05-08-17, 15:06
http://www.straitstimes.com/business/companies-markets/funan-it-mall-redevelopment-to-cost-560m
Hallmarks of turning a blue commercial site to something more exciting. We got to move with the times.
anythingwhatever
06-08-17, 23:21
City Plaza unit owners looking to sell en bloc
JUL 27, 2017
They will meet on Saturday to discuss possible collective sale, with asking price of up to $1 billion
Lee Xin En
Collective sales fever is spilling into the commercial sector as many City Plaza unit owners prepare for their first annual general meeting in years on Saturday, to discuss a sale with a possible price tag of as high as $1 billion.
The 18-storey freehold building near Paya Lebar MRT station was completed in 1972 and is known for its wholesale shops, which mainly sell apparel.
The building has 531 units, including 66 residential units, according to Mr Derrick Chan, a City Plaza unit owner who called for the meeting.
Mr Chan told The Straits Times yesterday that he did so as "it is the right time now".
He said: "There is en bloc fever now and Paya Lebar is developing into a business centre. The building is over 40 years old. If we do not go en bloc now, the cost of maintenance will be extremely high."
Mr Chan, a businessman who owns six units at City Plaza totalling 5,400 sq ft, said most of his units were tenanted, but he did not think that the "trend of wholesale clothing is in our favour".
"Retail sales are suffering, and wholesale retail is being taken over by (Chinese online site) Taobao. It is not economical to have a shop space and rental is very low."
Mr Chan added that unit owners are eyeing a sale price of between $800 million and $1 billion. More than 100 people are expected at the meeting. He hopes a collective sales committee can then be formed.
More than half of the unit owners he has spoken to have expressed interest in a collective sale, he said.
One of them, Mr James Tan, said rentals have been falling. He bought his 20 sq m unit in the early 1990s and collected a monthly rental of about $1,200. At the peak, he was getting $1,800 but lately, tenants have been seeking rentals of $1,000 to $1,200.
"Rental rates today are going back to those of the 1990s," he said, adding that even if he were to sell the unit, he did not know if the buyer could get a rental rate that would cover the instalment.
Dr Lee Nai Jia, head of research at Edmund Tie and Company, said that interest in collective sales of residential properties has spilt into the commercial sector, citing the successful collective sale of Citimac. The freehold industrial complex near Tai Seng MRT station is reportedly being sold for $430.1 million.
Dr Lee noted that Katong Shopping Centre also launched a collective sales bid earlier this year, but did not manage to meet its reserve price of $630 million.
"The Paya Lebar area is likely to become a new growth cluster, with Paya Lebar Quarter catalysing the development of the area. Hence, there will be keen interest for City Plaza," he said.
However, he noted that the asking price range of $800 million to $1 billion is "on the high side", as developers have other viable options.
Any updates from the meeting? :)
I hear they are calling an EGM in 3 weeks or so to elect the Sales Committee. Apparently this AGM saw a record turnout and many of those who came are keen or at least interested to find out more, including those who own bigger share values. My friend who attended did say that there are some who want to wait for PL to be more developed before cashing out. I do wonder though if they can agree on the price and apportionment of the proceeds. The commercial units hold higher share values so likely they will get the lion's share. The residential units will want to be able to get comparable replacement units so the price has to commensurate.
Even for commercial units are of different market value as well. Those ground floor, definitely want a higher premium.
https://www.theedgesingapore.com/why-second-chances-ceo-buying-stock . This is interesting.
PropVestor
11-09-17, 14:29
Anyone has any updates on this? The DC revision really pulled a brake on this?
Anyone has any updates on this? The DC revision really pulled a brake on this?
There is some delay calling for the EOGM but I hear they are working on it and expect it to happen in next 2 months. It has nothing to do with DC but rather trying to organise a Collective Sales Committee. Meanwhile , I don't know if this is true but I hear Grandlink Square owners might also be looking into en bloc. Has anyone heard anything ?
PropVestor
14-09-17, 16:04
There is some delay calling for the EOGM but I hear they are working on it and expect it to happen in next 2 months. It has nothing to do with DC but rather trying to organise a Collective Sales Committee. Meanwhile , I don't know if this is true but I hear Grandlink Square owners might also be looking into en bloc. Has anyone heard anything ?
Thanks for the update. For $1 billion, it is worth the wait.
PropVestor
Thanks for the update. For $1 billion, it is worth the wait.
PropVestor
You are very welcome.
bestguitarist
22-09-17, 23:34
I would like to see how they tackle the apportionment methods:
1) On the residential side, sizes are 85sqm and 150sqm units (big units are almost twice as big) and if I guess correctly, the share values should be 3 and 4. Striking a balance among the residential owners are already quite difficult.
2) On the commercial side, I believe valuation methods need to be used. Find a few valuers and take the average?
3) Then the biggest challenge would be to apportion between the residential and commercial owners.
I really would love to see a successful en bloc for City Plaza. I have been through one en bloc as a SC, and it really brings the worst out of some people and makes things really hard. "It" means GREED.
Thanks Tulip09 for updating and please continue to do so if it is convenient. I heard that CDL still owns quite a few shops (could be the best main road facing ones?). Any idea if that is true? Cheers!
I would like to see how they tackle the apportionment methods:
1) On the residential side, sizes are 85sqm and 150sqm units (big units are almost twice as big) and if I guess correctly, the share values should be 3 and 4. Striking a balance among the residential owners are already quite difficult.
2) On the commercial side, I believe valuation methods need to be used. Find a few valuers and take the average?
3) Then the biggest challenge would be to apportion between the residential and commercial owners
Thanks Tulip09 for updating and please continue to do so if it is convenient. I heard that CDL still owns quite a few shops (could be the best main road facing ones?). Any idea if that is true? Cheers!
Yes you are right. There are 3 big stakeholders in CP of which CDL is one ( Guan Realty). Second Chance is the second one and the third is an individual whose name I will not mention. But even together the 3 do not have enough share value to get the deal done. The overwhelming majority would be the individual unit owners. But they would need at least 2 if not 3 of the big guns to support the enbloc.
I understand the commercial units have much higher share value than the residential both in terms of total percentage as well as individual units. So I wonder too how it will play out. The big stakeholders own commercial units. It is true that Guan Realty & second Chance are holding prime units. Good frontage on ground floor and near escalator on second floor. So for them I think price has to make sense. These prime units are doing quite well in terms of rental.
I hear the EOGM has been set for Nov 1st. Any guesses how CP will fare versus Sim Lim Sq.?
City Plaza had their EOGM today and have voted in a Collective Sales Committee.
PropVestor
02-11-17, 13:50
City Plaza had their EOGM today and have voted in a Collective Sales Committee.
Timing is crucial. I do hope their CSC will appoint a good intermediary agent. Too bad Mr Karamjit Singh is no longer with JLL. He is one potent ingredient in successful en-bloc sales.
2 cents,
PropVestor
Timing is crucial. I do hope their CSC will appoint a good intermediary agent. Too bad Mr Karamjit Singh is no longer with JLL. He is one potent ingredient in successful en-bloc sales.
2 cents,
PropVestor
Agreed. Mr Karamjit Singh was Mr En bloc in the last round with Credo achieving success after success. I understand CP has a CSC of 14 members and they will be looking into appointing a Marketing agent and Legal team. It seems like they have good support with almost 70% of those present voting in favour of forming the CSC. Turnout was good with Quorum met at the start of meeting with a high percentage.
PropVestor
02-11-17, 16:36
Agreed. Mr Karamjit Singh was Mr En bloc in the last round with Credo achieving success after success. I understand CP has a CSC of 14 members and they will be looking into appointing a Marketing agent and Legal team. It seems like they have good support with almost 70% of those present voting in favour of forming the CSC. Turnout was good with Quorum met at the start of meeting with a high percentage.
Again, all the best. Am vested in PLC and its growth. I see great potential in drawing a good bid for this as timing is right. 2021 might see an influx of units due to the current en-bloc and also record bided land prices. Am betting on PPR completion in 2020 with high hopes. For better or worst, fingers crossed for you and me!
PropVestor
bestguitarist
03-11-17, 10:59
Agreed. Mr Karamjit Singh was Mr En bloc in the last round with Credo achieving success after success. I understand CP has a CSC of 14 members and they will be looking into appointing a Marketing agent and Legal team. It seems like they have good support with almost 70% of those present voting in favour of forming the CSC. Turnout was good with Quorum met at the start of meeting with a high percentage.
Best of luck! 14 CSC members! I believe the stakeholders must have been discussing the whole time and have agreed on some salient terms. Hope it will be a success.
https://sg.finance.yahoo.com/news/city-plaza-owners-collective-sale-143924680.html
Hopefully we should hear news soon . Since there is only one purely Commercial site released under the latest GLS this site should do well if launched in next 6 months.
I would like to see how they tackle the apportionment methods:
1) On the residential side, sizes are 85sqm and 150sqm units (big units are almost twice as big) and if I guess correctly, the share values should be 3 and 4. Striking a balance among the residential owners are already quite difficult.
2) On the commercial side, I believe valuation methods need to be used. Find a few valuers and take the average?
3) Then the biggest challenge would be to apportion between the residential and commercial owners.
I really would love to see a successful en bloc for City Plaza. I have been through one en bloc as a SC, and it really brings the worst out of some people and makes things really hard. "It" means GREED.
Thanks Tulip09 for updating and please continue to do so if it is convenient. I heard that CDL still owns quite a few shops (could be the best main road facing ones?). Any idea if that is true? Cheers!
bestguitarist
22-12-17, 11:00
https://sg.finance.yahoo.com/news/city-plaza-owners-collective-sale-143924680.html
Hopefully we should hear news soon . Since there is only one purely Commercial site released under the latest GLS this site should do well if launched in next 6 months.
I think the plot of land is in pretty good demand. I heard that at least one major marketing agencies agree to set the reserved price in the north of $1b, and the CSC is still listening to other proposals. Again the difficult part shall be the apportionment methods.
The neighbouring Park Place Residence (Residential component of Paya Lebar Quarter) Phase I was doing very well. Let's see how they do in Phase II.
http://www.parkplaceresidencesg.com/?gclid=EAIaIQobChMIqsq5rtyc2AIVmzUrCh3WHQWpEAAYBCAAEgIKQ_D_BwE
I understand they will appoint a Marketing Agent soon, likely after Christmas or early in January. It will be interesting to see the proposed apportionment. Coming up with one that is agreeable will be quite challenging given the different interest groups. These days however it seems owners tend to sign faster. The process of getting 80% seems to not take that long.
bestguitarist
22-12-17, 22:03
I understand they will appoint a Marketing Agent soon, likely after Christmas or early in January. It will be interesting to see the proposed apportionment. Coming up with one that is agreeable will be quite challenging given the different interest groups. These days however it seems owners tend to sign faster. The process of getting 80% seems to not take that long.
From my previous en bloc experience, I believe they CSC and the marketing agents would already have a method of apportionment in mind, meaning a method that the CSC believes it will secure 80% support both in strata area and share value. If I am to make a guess, I think the apportionment method will likely be valuation based. It shall be relatively easy for the residential side because there are only two sizes and shapes, but it will mean they need to do a market valuation for every single shops for the commercial side. It will cost quite a bit, but I think it is reasonable for it to be borne by the agent - they may make a cool $10m if the sale is successful, depending on the commission rate. Once they have the apportionment method ready, the CSA shall be drafted pretty quickly and ready to be signed. I also think that the first 60-70% of signing will happen within a week or two, but it may take some time to hit the 80% required.
A bit of hearsay.. I was told that one of the proposal was around $1.1b. I can't verify that.
I doubt the owners would agree to a price below 1 Billion so it’s likely Consultants will be working around that figure too but Valuation will be a better guide. I agree they will likely need to have a Valuation component as the Commercial units are quite varied in terms of value and yield. In terms of share value the Commercial units have a big majority so unless they get the support of enough of these owners it won’t go through. The most recent transaction was abv 4.7K psf for 3rd floor non prime units I believe so they may use that as a benchmark . Of course owners would want a premium.
prashantnative
26-12-17, 18:49
plot of land are in very good demand. They will need to assign marketting agent soon in this month.
Huttons has been appointed as Marketing Agent for City Plaza. I believe they are working on a two month time frame to call the next EOGM.
PropVestor
31-01-18, 14:02
There are so many en-bloc sites these days that I am getting a little confused. Developers calling the shots now.
Casa Meyfort has zero bidders based on their reserved price. $2,600psf at Meyer Road is a tough sell when completed. Looks like they have to go back to drawing board. Thats district 15. Another joins the fray but only LH. http://sbr.com.sg/residential-property/news/en-bloc-sale-katong-park-towers-launched
District 14 do not have as many so slightly better chance? Speed is now as important as price for large sites like City Plaza. Again, all the best!
People hanging out in this area not exactly rich.
Look at One KM mall, many shops cannot survive liao.
How will the developer resell the units at a high price just to break even?
PropVestor
31-01-18, 16:00
People hanging out in this area not exactly rich.
Look at One KM mall, many shops cannot survive liao.
How will the developer resell the units at a high price just to break even?
Where exactly are these people? The problem is density which PLQ will change all that. Its a growth area. You are seeing the early days of a decentralised site mentioned in URA concept plan. 55K people in that area.
https://www.ura.gov.sg/Corporate/Planning/Growth-areas/Paya-Lebar-Central/A-vibrant-commercial-hub
As investors, we need to see where the ball is going and not where it is now.
I am vested in D14 so I am bias. Bought PPR in March 2017. Lets see....
There are so many en-bloc sites these days that I am getting a little confused. Developers calling the shots now.
Casa Meyfort has zero bidders based on their reserved price. $2,600psf at Meyer Road is a tough sell when completed. Looks like they have to go back to drawing board. Thats district 15. Another joins the fray but only LH. http://sbr.com.sg/residential-property/news/en-bloc-sale-katong-park-towers-launched
District 14 do not have as many so slightly better chance? Speed is now as important as price for large sites like City Plaza. Again, all the best!
Apart from the district,what is more crucial is the difference in zoning. City Plaza is a full commercial site and so it’s not like the residential. We haven’t had a big commercial site launched recently so we will have to see how the market responds. My guess is that this will attract the big players , more likely foreign Developers as locals don’t have deep pockets. Possibly foreign Developers will team up with local counterparts to jointly bid.
People hanging out in this area not exactly rich.
Look at One KM mall, many shops cannot survive liao.
How will the developer resell the units at a high price just to break even?
I doubt the buyer will re - sell the units. Just like One KM. Commercial units are only being leased. Holding a FH commercial building in this area will provide the developer yield for years to come. The idea of applying for approval for Medical suites has also been brought up so alternatively that may be a possibility.
People hanging out in this area not exactly rich.
Look at One KM mall, many shops cannot survive liao.
How will the developer resell the units at a high price just to break even?
There are people from dist 15 who do go to One KM and I agree that this is a growth area so with PLQ completed they will have more reason to hang out in this shopping belt. Currently retail isn’t doing well anywhere but developers think Long term so they may think differently. Anyway we will have to see how this goes.
bestguitarist
14-02-18, 09:17
Huttons has been appointed as Marketing Agent for City Plaza. I believe they are working on a two month time frame to call the next EOGM.
Thanks for sharing Tulip09
Thanks for sharing Tulip09
Anytime. Fortis Law has been appointed as legal consultant. I gather they are doing the ground work now .
bestguitarist
27-03-18, 10:29
Anytime. Fortis Law has been appointed as legal consultant. I gather they are doing the ground work now .
Hi Tulip09, any updates on the progress of City Plaza? I believe they should be in the process of finalizing the collective sales agreement and have it approved in an upcoming EOGM. Recently some more commercial projects trying their lucks in the en bloc market but none is sold so far this year. It is especially hard for strata shop owners to agree on an apportionment methods (the commonly used valuation method is quite subjective unfortunately). Hope City Plaza en bloc can go well.
Hi Tulip09, any updates on the progress of City Plaza? I believe they should be in the process of finalizing the collective sales agreement and have it approved in an upcoming EOGM. Recently some more commercial projects trying their lucks in the en bloc market but none is sold so far this year. It is especially hard for strata shop owners to agree on an apportionment methods (the commonly used valuation method is quite subjective unfortunately). Hope City Plaza en bloc can go well.
Hello, so far no confirmation of the EOGM date. They are working on the valuation of every unit , apportionment , Collective Sale Agreement etc. More and more commercial sites are being launched so I think we will have some idea how this will go once we see how some comparable ones do. But whether CS can get 80% will depend on whether owners are happy with the Apportionment. I gather some feel it’s better to wait for the 2020s as the height restriction may be lifted once Paya Lebar airport moves in 2030.Meanwhil I wonder why there is no news of Grandlink Sq as I be
I heard in January that they had completed all the ground work including Apportionment. Are they still at the signing stage ?
prashantnative
28-03-18, 17:00
I think there should be some update.
City Plaza EOGM has been set for 1 Sept. The Valuation report was prepared by Wilson Lim Yen Kia of Asian Assets Allianz Pte Ltd. Was wondering if anyone is familiar with this Appraiser and has he worked on other collective sales? Proposed RP is 950M which in my opinion is a bit Low but let’s see if they accept it.
City Plaza EOGM has been set for 1 Sept. The Valuation report was prepared by Wilson Lim Yen Kia of Asian Assets Allianz Pte Ltd. Was wondering if anyone is familiar with this Appraiser and has he worked on other collective sales? Proposed RP is 950M which in my opinion is a bit Low but let’s see if they accept it.
Thanks for sharing.
bestguitarist
04-09-18, 16:40
City Plaza EOGM has been set for 1 Sept. The Valuation report was prepared by Wilson Lim Yen Kia of Asian Assets Allianz Pte Ltd. Was wondering if anyone is familiar with this Appraiser and has he worked on other collective sales? Proposed RP is 950M which in my opinion is a bit Low but let’s see if they accept it.
In my humble opinion, the valuation report is merely to satisfy the statutory requirement - the RP has to be above the said valuation. I would imagine it is quite common that the valuation report is created backwards to match whatever RP generally accepted by the majority. I personally think that relative to the RP, the apportionment method is harder to agreed on for mixed developments like City Plaza. Thanks for the update Tulip09. May I know if this is the third EOGM which is to approve the terms in the Collective Sales Agreement? It is interesting that there is one residential unit for sale on propertyguru, asking around $1500psf. Wish this a success and hope you can hugely benefit economically from this opportunity.
PropVestor
04-09-18, 17:03
Any updates Tulip09?
Any updates Tulip09?
Hello. The turnout at the EOGM was not great. Less than 40% of share value turned up either in person or by proxy. Of these nearly 70% voted to approve the RP & Apportionment. So they have started collecting signatures. On the day of the EOGM almost 25% off owners signed.
Those who aren’t supporting largely are in favour of en bloc but feel the RP and valuations for certain units are far too low.
In my humble opinion, the valuation report is merely to satisfy the statutory requirement - the RP has to be above the said valuation. I would imagine it is quite common that the valuation report is created backwards to match whatever RP generally accepted by the majority. I personally think that relative to the RP, the apportionment method is harder to agreed on for mixed developments like City Plaza. Thanks for the update Tulip09. May I know if this is the third EOGM which is to approve the terms in the Collective Sales Agreement? It is interesting that there is one residential unit for sale on propertyguru, asking around $1500psf. Wish this a success and hope you can hugely benefit economically from this opportunity.
It was the second EOGM and was to approve the RP + Apportionment as well as CSA.
PropVestor
19-11-18, 11:17
It was the second EOGM and was to approve the RP + Apportionment as well as CSA.
Anymore progress update Tulip?
Anymore progress update Tulip?
Yes. Although the Valuation & Apportionment were approved at the EGM there was much unhappiness expressed about the valuation of individual units which seemed quite subjective and arbitrary. As at end Oct they could not even get 20% fully signed . The earlier figure given didn’t mean anything as many owners who signed could not get the co owners to sign as well. In my opinion we are headed for failure.
Yes. Although the Valuation & Apportionment were approved at the EGM there was much unhappiness expressed about the valuation of individual units which seemed quite subjective and arbitrary. As at end Oct they could not even get 20% fully signed . The earlier figure given didn’t mean anything as many owners who signed could not get the co owners to sign as well. In my opinion we are headed for failure.
Can see from the number of new shop opening at City Plaza.
PropVestor
22-11-18, 10:43
Yes. Although the Valuation & Apportionment were approved at the EGM there was much unhappiness expressed about the valuation of individual units which seemed quite subjective and arbitrary. As at end Oct they could not even get 20% fully signed . The earlier figure given didn’t mean anything as many owners who signed could not get the co owners to sign as well. In my opinion we are headed for failure.
Heads up buddy. The old will have to make way for the new in this island obsessed with skyline renewal.
Heads up buddy. The old will have to make way for the new in this island obsessed with skyline renewal.
If you got enough stubborn people they will stay.
PropVestor
22-11-18, 13:01
If you got enough stubborn people they will stay.
No human lives forever.
No human lives forever.
Problem is they live long enough to give you a nightmare.
PropVestor
22-11-18, 15:26
Age is relative like how some will only see capital appreciation over rental play.
If you got enough stubborn people they will stay.
It’s not that most don’t want to sell. The problem is the way the way valuations were done , too much variation between neighbouring units. Frankly even if they get 80% which is extremely unlikely, the minority will have good grounds to object to STB. Most are agreeable to selling but not in a hurry as it’s FH and Paya Lebar still has upside potential. When the airport moves in 2030 height restrictions will be lifted. It is expected that by the 2020s value of the land will appreciate in view of this.
City Plaza RP has been revised from 950 M to 1.05 B. Still too early to tell if this will be enough to get the 80%.
City Plaza is making another attempt at en bloc. Sales Committee was formed last year, there will be a meeting on 6 Nov to approve the RP ( 850M) and apportionment.
Update : singing of CSA has started
City Plaza is making another attempt at en bloc. Sales Committee was formed last year, there will be a meeting on 6 Nov to approve the RP ( 850M) and apportionment.
Update : singing of CSA has started
Congrats
Congrats
Still early, no idea If it will go through yet.
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