CapitaLand-CDL tie-up clinches Sengkang Central site for S$777.78m (923.59psf ppr)

[bargain hunter]

https://www.businesstimes.com.sg/real-estate/capitaland-cdl-tie-up-clinches-sengkang-central-site-for-s77778m

THU, AUG 16, 2018 - 6:45 PM
KALPANA [email protected]@KalpanaBT
A CAPITALAND and City Developments tie-up has clinched a commercial and residential site in Sengkang Central. Their winning bid of S$777.78 million works out to S$923.59 per square foot per plot ratio for the 99-year leasehold site next to Buangkok MRT Station.

The winning bid was the highest of the four shortlisted tenders for the dual-envelope (concept and price) tender.

[westin]

Breakeven $1300-$1400...when launched..around $1600-$1700 for sengkang

[Khng8]

The commercial component will be priced higher than residential so residential launch may not be $1700psf.

[bargain hunter]

The Project will look like this https://www.ura.gov.sg/-/media/Corporate/Media-Room/2018/Aug/pr18-50d.pdf

[westin]

At least $1500

[bargain hunter]

At least $1500

yes, given that they are big boys with reputation. they can't possibly build the residential component for free. they would certainly try to sell at > 1500psf.

[westin]

Solid...looks like rcr projects are cheap now.

[bargain hunter]

Solid...looks like rcr projects are cheap now.

tre ver preview average is 1550psf. haha.

[Xan]

Tre Ver RCR but not near amenities.

[bargain hunter]

Tre Ver RCR but not near amenities.

that's true. few mins away but buyers prefer paying more for park colonial which they deem to be near enough to the future amenities.

[Xan]

News keep saying Tre Ver is selling 5-10% cheaper due to cooling measure. Else Tre Ver would have launch price equivalent to those surrounding projects. I find it amusing. How can Tre Ver price the same as PC?

Some bear (you know who I refer to) even do a podcast and announce to the whole world by using Tre Ver as an example. Saying soon the developer will be giving 70% discount to clear stock. There’s still pple who believe her. Lol.

[bargain hunter]

http://infopub.sgx.com/FileOpen/180816_CapitaLand-CDL%20joint%20venture%20wins%20prime%20site%20in%20Sengkang%20Central.ashx?App=Announcement&FileID=522025

JOINT NEWS RELEASE BY CAPITALAND LIMITED AND CITY DEVELOPMENTS
LIMITED
CapitaLand-CDL joint venture wins prime site in Sengkang Central
Integrated community hub with excellent transportation connectivity poised to
attract first-time home buyers and upgraders
Singapore, 16 August 2018 – CapitaLand Limited and joint venture partner City
Developments Limited (CDL) have successfully clinched the attractive mixed-use residential
and commercial site in Singapore’s vibrant Sengkang Central at a tender price of S$777.78
million. The bid was submitted on a Two-envelope Concept and Price Revenue tender system
which works out to S$923.60 per square foot of gross floor area1
. Leveraging synergies from
CapitaLand’s and CDL’s proven expertise in integrated developments, the joint venture will
transform the 3.7-hectare site – the largest commercial and residential site awarded since
2015 – into an integrated community hub with 700 residential apartments, meeting the needs
of residents in Buangkok with amenities such as a hawker centre, community club, childcare
centre, retail shops, as well as public rail and bus transport facilities sited in a one-stop location.
The new non-remittable and revised ABSD rate imposed on housing developers from 6 July
2018 will not apply for this site acquisition. The integrated development is targeted for
completion in the first half of 2022.

This integrated site in the heart of Sengkang Central has direct access to Buangkok MRT
Station and the future bus interchange and is a mere 20-minute drive from the Central
Business District. At only nine stops to Dhoby Ghaut MRT Station via North-East Line, the
travelling time is less than 25 minutes. The site is also easily accessible via major
expressways such as KPE, SLE and CTE and well connected to major hubs such as the future
Punggol Digital District and Seletar Aerospace Park. The proposed development will offer
first-time private home buyers and upgraders an attractive opportunity to own a home with
excellent transportation connectivity and close proximity to a myriad of amenities.
As the only mixed commercial and residential site with seamless and sheltered connectivity to
the Buangkok MRT Station and the future bus interchange, the development will contribute
towards enhancing the walkability of the neighbourhood by providing a linear park that runs
along the entire frontage of the development along Sengkang Central and Compassvale
Ancilla Park; as well as a garden ramp connecting the residential component with the rest of
the development.

Mr Lim Ming Yan, President & Group CEO of CapitaLand Group said: “CapitaLand looks
forward to partnering CDL to shape and transform the site into a landmark development that
will be an identity marker and new focal point for the Buangkok neighbourhood. Winning this
bid attests to CapitaLand’s track record in creating quality integrated developments fusing live,
work and play elements that serve the needs of the community. This is our second acquisition
of the week2
, as we gather momentum in replenishing our land bank. CapitaLand will continue
to be disciplined and focused in our capital recycling efforts, by actively deploying the gains
from our portfolio reconstitution strategy into higher yielding investments.”
Mr Sherman Kwek, CDL Group CEO said: “CDL is honoured to have won this comprehensive
integrated development site with our partner CapitaLand. There is deep emphasis on design
as the site was put up for sale under a dual-envelope concept and price tender. Over the
years, CDL has built up a strong track record for compelling design concepts which has
enabled us to secure prime sites like The South Beach and Quayside Collection in Sentosa
Cove under the two-envelope system.”
“We see tremendous potential in this site which has exceptional attributes. Envisioned as a
one-stop community hub, it will be integrated with a new bus interchange and connected to
the existing Buangkok MRT Station. Various amenities and recreational facilities such as a
hawker centre, childcare centre and civic plaza will be right at residents’ doorsteps, giving rise
to a vibrant and bustling community. CDL is familiar with the vicinity, having developed the
fully-sold Jewel @ Buangkok across from this site. Through our partnership with CapitaLand,
we hope to create a distinctive and endearing landmark that will serve as the nucleus for the
whole Buangkok and greater Sengkang area.”
The joint bid by CapitaLand and CDL was submitted through Siena Residential Development
Pte. Ltd. and Siena Trustee Pte. Ltd. (as Trustee-Manager of Siena Commercial Trust), each
holding a 50.0% interest in Siena Residential Development Pte. Ltd., Siena Trustee Pte. Ltd.
and Siena Commercial Trust.

[star]

How big is the gross commerical area? A mall must be minimum 200,000sqft to be meaningful. Anything less than that is very small.

[Arcachon]

https://scontent.fsin3-1.fna.fbcdn.net/v/t1.0-9/39398716_539907313107385_6774293805349732352_n.jpg?_nc_cat=0&oh=62a0da798352e1098453a272361f0604&oe=5BF16E36

[Arcachon]

https://www.businesstimes.com.sg/real-estate/capitaland-and-cdl-team-up-again-this-time-for-sengkang-mixed-development

[PropVestor]

Breakeven $1300-$1400...when launched..around $1600-$1700 for sengkang

From the way they structure it, this is one of a kind mixed development. If we do not compare location but purely by facilities, this is one up SPH-Kajima development at Bibadari (you do not use the Police Station everyday right)?

If its one OCR project to look forward to, this is definitely one on my radar with 2 reputable developer doing it together.

[star]

It says in URA land sales website commerical space is 13,300sqm. I think it is very small. A mall should be greater than 200,000sqft even 200,000sqft is consider small to me.

If no mall only got hawker centre and community centre can forget about it. It will like kampong admiralty.

[bargain hunter]

It says in URA land sales website commerical space is 13,300sqm. I think it is very small. A mall should be greater than 200,000sqft even 200,000sqft is consider small to me.

If no mall only got hawker centre and community centre can forget about it. It will like kampong admiralty.

that means the weightage is actually quite strong for the residential component.

[bargain hunter]

From the way they structure it, this is one of a kind mixed development. If we do not compare location but purely by facilities, this is one up SPH-Kajima development at Bibadari (you do not use the Police Station everyday right)?

If its one OCR project to look forward to, this is definitely one on my radar with 2 reputable developer doing it together.

would u still buy it at > 1500psf, maybe higher?

given that the residential weightage is high, even if the commercial portion is their "profits", they still won't build the residential portion for "free".

[Xan]

Do we have an absolute answer for this?
Ulu RCR (Tre Ver) compared to OCR (with mrt/shopping mall run by big boys) both selling around 15xxpsf? Which one to buy?
I remember some get mocked when buying watertown at 1.1-1.3kpsf.
So now this buangkok project @ >1.5kpsf became the norm?

[PropVestor]

would u still buy it at > 1500psf, maybe higher?

given that the residential weightage is high, even if the commercial portion is their "profits", they still won't build the residential portion for "free".

I will have to look at a number of factors.
1) Buying own stay, I will consider if its good layout, high floor and good facing but now that I hit the highest ABSD bracket. This is a big IF for me.
2) Buying for investment, I know very little about OCR projects. Let me study more when the time comes and I will answer you.

The commercial portion as you rightly points out plays a major role. I am not sure if you can buy the units like Poiz Residence. If that is the case, the retail mix will be a bit of a toss. You can get mobile phone shops next to nail spas. You get what I mean at Paya Lebar Square but not at Singpost Centre.

For a Mixed-D, residential component needs to be high (if not where to get footfall). The only one that has a rather high retail mix or like a proper mall is PPR which has a sizeable proper mall. Even billion dollar developments like Duo/Marina One/South Beach's retail is a joke. To each his own when one consider a mall to be 'sizeable'. Some are happy with Tampines One but some needs Vivio City/Suntec to satisfy them (to me, that is asking for the sky).

Do also take note that CapitalLand is part of the mix here. If any developer know how to build a mall, this is one of them.

2 cents,
PropVestor

[PropVestor]

Do we have an absolute answer for this?
Ulu RCR (Tre Ver) compared to OCR (with mrt/shopping mall run by big boys) both selling around 15xxpsf? Which one to buy?
I remember some get mocked when buying watertown at 1.1-1.3kpsf.
So now this buangkok project @ >1.5kpsf became the norm?

To be fair, WaterTown was launched at challenging times. If they are to launch it in the last 3 quarters with such an offering, the psf will be rather different. Trash talk as we cannot turn back time. :p

2 cents,
PropVestor

[star]

The more important question is does this 13,300sqm include hawker centre and community centre as commerical? Go capitamall website take a look at gross floor area for shopping mall for a rough idea. Btw poiz residence mall is a joke, it is only 50,000sqft..

[star]

Sembawang shopping centre next to nautical condo is 206,000sqft just a guide for u all to see.

[Tomutomi]

CCR RCR OCR are just a label. Some RCR performs better than CCR (look at mature estates with good schools), some OCR performs better than RCR (look at CBD in the east, soon to be in west and future plan at north-east).

Though another factor also because there are many new launchs of recently land development bought in high price (stirling rd, woodleigh, tampines) easily warming up the surrounding markets. Some areas with few or no new launchs have less inflated resale prices (look at condos around lavender or simei mrt).

Will be interesting to see where people love to stay within next 10-20 years, will CCR RCR and OCR labelling still relevant.

[Xan]

I will have to look at a number of factors.
1) Buying own stay, I will consider if its good layout, high floor and good facing but now that I hit the highest ABSD bracket. This is a big IF for me.
2) Buying for investment, I know very little about OCR projects. Let me study more when the time comes and I will answer you.

The commercial portion as you rightly points out plays a major role. I am not sure if you can buy the units like Poiz Residence. If that is the case, the retail mix will be a bit of a toss. You can get mobile phone shops next to nail spas. You get what I mean at Paya Lebar Square but not at Singpost Centre.

For a Mixed-D, residential component needs to be high (if not where to get footfall). The only one that has a rather high retail mix or like a proper mall is PPR which has a sizeable proper mall. Even billion dollar developments like Duo/Marina One/South Beach's retail is a joke. To each his own when one consider a mall to be 'sizeable'. Some are happy with Tampines One but some needs Vivio City/Suntec to satisfy them (to me, that is asking for the sky).

Do also take note that CapitalLand is part of the mix here. If any developer know how to build a mall, this is one of them.

2 cents,
PropVestor

Hey neighbour, any chance PPR to TOP by 2019? Though officially it was stated 2020 Q4

[PropVestor]

We still owe them 5 tranches of payment to key collection at this point. From residence standpoint, it is structurally at 8th floor out of 17. I see them finishing in Q2 2020 and no earlier I reckon.

[Gustave44]

They have been very busy lately...

CapitaLand gets a 'buy' on active capital recycling and portfolio rebalancing

SINGAPORE (Aug 23): CapitaLand’s recent acquisitions in Singapore and China show continued efforts to recycle capital and rebalance its portfolio mix, say analysts.
Recently, CapitaLand acquired a Sengkang Central mixed-use site in partnership with City Developments with a winning bid of $777.8 million or $923.6 psf ppr.
CapitaLand-CDL JV secures prime site in Sengkang Central for $777.8 mil. The revised additional buyer’s stamp duty (ABSD) charges will not apply for this project as the tender closed on June 21 before the latest cooling measures.

READ MORE: https://www.edgeprop.sg/property-news/capitaland-gets-buy-active-capital-recycling-and-portfolio-rebalancing