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Thread: Thomson View condo sold en bloc for $590m

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    Default Thomson View condo sold en bloc for $590m

    Thomson View condo sold en bloc for $590m

    Published on Sep 07, 2012

    By Esther Teo, Property Reporter

    THOMSON View Condominium has breathed new life into the collective sale market, fetching a whopping $590 million in the fifth largest such sale here.

    One factor that helped clinch the landmark sale was likely the newly announced nearby Upper Thomson MRT station - part of the upcoming Thomson Line.

    Many experts had thought the days of mega collective sales of more than $500 million were over in the wake of the property market cooling measures.

    But mainboard-listed developer Wee Hur Development and private equity investment company Lucrum Capital have proved them wrong.

    They teamed up to buy the 540,314 sq ft site along Upper Thomson Road for $712 per sq ft (psf) per plot ratio (ppr).

    This is a boost to a market which has seen mostly only smaller collective sales of under $100 million in recent years.

    Owners of Thomson View units - ranging from apartments to townhouses and shop space - are set to receive gross proceeds of $1.62 million to $3.59 million, marketing agent HSR said. This is about 30 per cent to 40 per cent more than selling individual units would have fetched.

    Resident Sebastian Teo, 27, said the sale was good news. "I'm very used to this place but it'll also be nice to get a change of environment. We'll start looking for an new apartment soon." He is the managing director of an interior design firm.

    Mr Jeffrey Goh, HSR's head of investment sales, expects the total development cost of the new project - including construction, fees, interests, taxes and acquisition costs - to amount to about $1.1 billion.

    "This is a big confidence booster for the Singapore property market and the largest collective sale deal done outside the prime districts of 9, 10 and 11.

    "The deal clearly marks the return of confidence that major developers have in the market for collective sale sites," he added.

    There are only four other collective sales larger than this, all of them in 2007. The record is still held by Farrer Court at $1.34 billion.

    Recent failed collective sale attempts at more than $500 million include Tulip Garden, Laguna Park and Pine Grove.

    Lucrum Capital director David Batchelor said that the site is elevated with unblocked views, is close to good schools and opposite shopping mall Thomson Plaza. The upcoming MRT station and large site, conducive to major development, also made it attractive, he said.

    Plans are still being firmed up but the redeveloped site will have at least 1,000 units, Mr Batchelor added. The site is zoned for residential use with a gross plot ratio of 2.1 and maximum height of 24 storeys.

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  2. #2

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    Default Thomson View fetches $590m in en bloc sale

    Published September 07, 2012

    Thomson View fetches $590m in en bloc sale

    It's sold to consortium led by Wee Hur and Lucrum Capital in third attempt

    By zeinab yusuf saiwalla

    [SINGAPORE] Thomson View condominium has been sold to a consortium led by Wee Hur Development Pte Ltd and Lucrum Capital Pte Ltd for $590 million after two previously unsuccessful en bloc attempts.

    Including an estimated $107 million premium to enhance the property's use and a $90 million premium to top up the lease from the remaining 62 years to 99 years, this translates to $712 per square foot per plot ratio (psf ppr).

    The 540,314-sq-ft site, located along Upper Thomson Road, is designated for residential use with a 2.1 plot ratio and 24-storey maximum height.

    It comprises 100 residential apartments of 1,313 sq ft, another 100 residential apartments of 2,023 sq ft, 54 townhouses of 3,842 sq ft and one shop lot of 1,862 sq ft.

    With the collective sale, owners are expected to receive proceeds of $1.62 million, $2.30 million, $3.59 million and $2.82 million respectively, representing an en bloc premium of 30 to 40 per cent above the current resale prices of individual units, according to marketing agent HSR.

    The plot can be redeveloped into a new condominium with about 950 units averaging 1,200 sq ft.

    The site was first launched in the collective site market in November 2007, with an indicative asking price of $550 million, which works out to $652 psf ppr. That sale, however, failed to attract any bidders.

    Its second attempt in November 2011, too, proved unsuccessful.

    In 2011, the site was marketing at between $595 million and $635 million, which translates to between $694 and $732 psf ppr.

    It was launched for en bloc a third time in April this year for $580 million, which together with the associated premiums translated to $685 psf ppr.

    According to Jeffrey Goh, head of investment sales, HSR, the sale was "boosted by the announcements of the Upper Thomson MRT station slated for completion in 2020".

  3. #3

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    read in ST today that this deal hit a stumbling block with some owners rejecting the offer price.

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    They probably found out they can't buy anything similar to replace their unit at that location at the price offered. I was surprised that they accepted at that price anyway.

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    Didn't they get the required amount of acceptances before getting the buyer to offer? Still can reject ah? The market has moved by quite a bit since the deal was announced?

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