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Thread: CapitaLand buys Farrer Court for S$1,338.8 million

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    Default CapitaLand buys Farrer Court for S$1,338.8 million

    Published June 28, 2007

    CapitaLand front runner for Farrer Court?

    By KALPANA RASHIWALA


    THE tender for Farrer Court, Singapore's first billion-dollar collective sale, closed yesterday with strong bids, industry players reckon.

    Speculation was that CapitaLand was the front runner and was engaged in negotiations late last night. Credo Real Estate, which is handling Farrer Court's collective sale, declined to comment.

    GuocoLand is also believed to have taken part in the tender. It clinched the freehold Leedon Heights earlier this year at $835 million or $1,062 psf of potential gross floor area.

    Farrer Court, however, has an even higher absolute reserve price, of $1.2 billion, which works out to slightly over $700 psf per plot ratio (psf ppr) for the 99-year leasehold site. Bids for Farrer Court are believed to have clearly surpassed that.

    The official expected price when Farrer Court's tender was launched last month was $1.5 billion, or around $850 psf ppr.

    The District 10 site, a privatised HUDC estate, is unique in being the only private residential site in the Farrer Road and Holland Road vicinity that is accorded a high plot ratio of 2.8 and a maximum height of 36 storeys.

    Most of the surrounding sites are designated for either landed housing or low or medium-rise developments of up to five or 12 storeys.

    Farrer Court boasts not only the highest asking price in terms of the absolute dollar quantum for a collective sale, it also has the biggest land area at 838,488 sq ft, for an en bloc sale site.

    The maximum potential gross floor area of almost 2.35 million sq ft for the site - or about 1,800 apartments averaging 1,250 sq ft - means that a new development on the site would be the biggest condo development yet to be undertaken in Singapore, based on comments when thesite was launched last month.

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    Default Re: CapitaLand front runner for Farrer Court?

    Farrer Court

    It's official

    en bloc at S$1.38B

    with development charges S$1.85B

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    Default Re: CapitaLand front runner for Farrer Court?

    Quote Originally Posted by ahlahdin
    Farrer Court

    It's official

    en bloc at S$1.38B

    with development charges S$1.85B
    So, is Capitalland the winner????????????

  4. #4
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    Default Re: CapitaLand front runner for Farrer Court?

    Here's the confirmation!!!!!!!!!!!!!!!!!!!!!!!!!!

    FOR IMMEDIATE RELEASE
    28 June 2007
    NEWS RELEASE
    CapitaLand acquires Farrer Court
    Redevelopment into 1,500 high-end homes
    Existing owners to be given first right of refusal to purchase units
    Singapore, 28 June 2007 – CapitaLand has agreed to acquire Farrer Court for a
    consideration of S$1,338.8 million through a collective sale. Inclusive of an estimated
    differential premium of S$450 million to S$500 million to top up the lease to a fresh 99-
    year tenure and to maximise the plot ratio, the total acquisition cost works out to
    between S$762 and S$783 per square foot per plot ratio. With this latest acquisition, the
    size of the residential landbank managed by CapitaLand in Singapore will increase to
    approximately 5.5 million square feet of potential gross floor area.
    Located along Farrer Road in the Holland Village residential enclave, Farrer Court sits
    on a 77,898-square-metre (838,488 square feet) site with a maximum gross plot ratio
    of 2.8. There are 618 apartments in the existing development. Approval has been
    obtained from owners with over 80% share value to proceed with the collective sale.
    The completion of the transaction, expected to take place by the second quarter
    of 2008, is subject to the approval of the Strata Titles Board.
    Mr Liew Mun Leong, President and CEO of CapitaLand Group, said: “With the addition
    of the Farrer Court site and recent acquisitions, our residential landbank in Singapore
    will be increased substantially to benefit from the country’s growth story. The
    Farrer Court site is a large-sized property that will give us the opportunity to work with
    world-renowned architects who have an international portfolio, to create a unique
    landmark project. Recently, we teamed up with Cox Architects & Planners for the
    RiverGate residential landmark development in Singapore, Alsop Architects for the
    Raffles City Beijing project in China, and Rafael Vinoly for the Raffles City project in
    Bahrain. We will also work with well-reputed strategic partners who share our
    confidence and commitment to the Singapore residential market. In addition, the
    existing owners will be given the first right of refusal to purchase units in the new
    development, similar to what was extended to former owners of Char Yong Gardens
    and the site for The Seafront on Meyer.”
    Ms Patricia Chia, CEO of CapitaLand Residential Singapore, said: “The Farrer Court
    site will be another jewel in our Singapore residential landbank. It is the last sizeable
    land parcel available in the prime Holland area, and the only site along Farrer Road with
    the potential to build up to 36 storeys. This gives us the opportunity to develop a
    distinctive high-rise condominium where the majority of the apartments will enjoy
    unprecedented views of Bukit Timah Hill, Botanic Gardens, MacRitchie Reservoir, the
    good class bungalows of Victoria Park and the Orchard Road city skyline. We will form
    a consortium, comprising Hotel Properties Limited, Wachovia Development Corporation
    and possibly a foreign fund, to develop this project. We will continue to look for welllocated
    sites in Singapore for future residential developments.”
    CapitaLand plans to build a luxurious 36-storey condominium with approximately 1,500
    generously-sized apartments on the Farrer Court site. The development will be ready
    for launch in the first half of 2009. CapitaLand is the lead development manager for the
    project, responsible for the full spectrum of sales and marketing, product design and
    development, and project management.
    The site enjoys convenient access to the shopping and dining facilities at the eclectic
    Holland Village and trendy Orchard Road area, as well as the popular Coronation
    Shopping Plaza. Located in District 10, it is also within walking distance of the
    future Farrer Road MRT station which will provide great connectivity to the Central
    Business District. Nature lovers will enjoy pleasant walks at the nearby Botanic
    Gardens. Good schools in the vicinity include the Nanyang Primary School, Raffles
    Girls' Primary School, Hwa Chong Institution, National Junior College, and Nanyang
    Girls' High School.
    About CapitaLand Limited (www.capitaland.com)
    CapitaLand is one of the largest listed real estate companies in Asia. Headquartered in
    Singapore, the multinational company's core businesses in real estate, hospitality and
    real estate financial services are focused in gateway cities in Asia Pacific, Europe and
    the Middle East. The company's real estate and hospitality portfolio spans more than 90
    cities in over 20 countries. CapitaLand also leverages on its significant real estate asset
    base, financial skills and market knowledge to develop real estate financial products
    and services in Singapore and the region. The listed subsidiaries and associates of
    CapitaLand include The Ascott Group, CapitaMall Trust, CapitaCommercial Trust,
    Ascott Residence Trust, CapitaRetail China Trust, Quill Capita Trust and Australand.
    Issued by: CapitaLand Limited (Co. Regn: 198900036N)
    Date: 28 June 2007
    CapitaLand
    Analyst contact: Media contact:
    Harold Woo, Investor Relations Nicole Neo, Communications
    Tel: +65 6823 3210 Tel: +65 6823 3218

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    Default Re: CapitaLand buys Farrer Court for S$1,338.8 million

    HPL is also involved in the Farrer Court En Bloc Acquisition.
    -----------------------------------------------------------------------------------
    Co. Reg No : 198000348Z
    Memorandum of Agreement
    The Board of Directors of Hotel Properties Limited (the "Company" or “HPL”) wishes to announce that its wholly owned subsidiary, HPL Orchard Place Pte Ltd, has entered into a Memorandum of Understanding (“MOU”) with CRL Realty Pte Ltd (“CRL”) and Wachovia Development Corporation for the purpose of forming a joint venture to acquire 151A, 151B, 151C, 151D, 151E, 151F, 151G and 151H King’s Road, Farrer Court (“Farrer Court”) and to build a condominium on the Farrer Court Site.
    Under the terms and conditions of the MOU, each of the parties agree to participate in the Joint Venture through investing in Morganite Pte Ltd (“Morganite”), a newly incorporated company currently wholly-owned by CRL. HPL is expected to acquire 20% to 30% interest in Morganite.
    Morganite has agreed to acquire Farrer Court for a consideration of S$1,338.8 million (the “Consideration”) through a collective sale (the “Acquisition”). Taking into account an estimated differential premium of S$450 million to S$500 million to top up the lease to a fresh 99-year tenure and to maximise the plot ratio, the total acquisition cost is estimated to be between S$762 and S$783 per square foot per plot ratio.
    The Consideration was arrived at on a willing-buyer and willing-seller basis. A tender fee of S$1 million has been paid for the Acquisition (the “Tender Fee”). The Consideration is payable in instalments: 5% of the Consideration (less the Tender Fee) is payable within 7 days from 28 June 2007 and 5% of the Consideration is payable within 7 days of an order being made by the Strata Titles Board (the “Board”). The balance 90% of the Consideration is payable upon completion of the Acquisition, which is expected to take place by the second quarter of 2008 and subject to inter alia, the approval of the Board.
    Located along Farrer Road in the Holland Village residential enclave, Farrer Court sits on a 77,898 square metre (838,488 square feet) site with a maximum gross plot ratio of 2.8. There are 618 apartments in the existing development. Approval has been obtained from owners with over 80% share value of Farrer Court to proceed with the collective sale.
    The aforesaid transactions are not expected to have any material impact on the net tangible asset or earnings per share of the HPL Group for the financial year ending 31 December 2007.
    None of the Directors or the controlling shareholders of HPL, has any interest or indirect in the aforesaid transactions.
    By order of the Board
    Lo Swee Oi
    Company Secretary
    28 June 2007

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    Default Re: CapitaLand buys Farrer Court for S$1,338.8 million

    The biggest en bloc in Singapore! Wow... mind boggling. Congratulations CapitaLand - you got what you wanted!

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    Default Re: CapitaLand buys Farrer Court for S$1,338.8 million

    Published June 29, 2007

    Farrer Court collective sale fetches hefty $1.3b

    CapitaLand-led deal chalks up highest sum paid for an en bloc sale

    By KALPANA RASHIWALA


    (SINGAPORE) A whopping $1.3388 billion.

    That's the price that a consortium - comprising CapitaLand, Hotel Properties, US-based Wachovia Development Corporation and possibly a foreign fund - is paying to buy Farrer Court.

    According to Credo Real Estate, which brokered the sale, the sum is the highest ever fetched for a collective sale to date, and is possibly also the biggest ever residential land transaction in Singapore.

    The unit land cost to the developers for the leasehold District 10 site works out to $762 to $783 psf of potential gross floor area. This is inclusive of two payments the buyers will have to make to the state - an estimated $275 million differential premium for enhancing the intensity of the site's use to a 2.8 plot ratio, and a further sum of about $175 million to $225 million for topping up the site's lease from a remaining term of about 69 years to 99 years.

    The privatised HUDC estate has 618 existing apartments of two sizes - 1,615 sq ft and 1,453 sq ft. Their owners will get respective sums of $2.238 million and $2.122 million per unit. Based on the apartments' existing strata areas, the proceeds to owners work out to $1,386 psf and $1,460 psf respectively. Before work on a collective sale at Farrer Court began in Q2 last year, the apartments were changing hands at about $500,000 to $600,000 each. The sums that the owners will receive are about 11.5 per cent higher than the sums they would have received based on the $1.2 billion reserve price in the collective sale agreement (CSA).

    The deal is subject to approval from the Strata Titles Board. Owners with about 81 per cent of share values have signed the CSA so far. Rodyk & Davidson is representing the majority owners.

    Industry players reckoned the construction costs, fees, interest and holdings costs for the developers could amount to a further $1 billion to $1.1 billion - resulting in an all-in investment of about $2.8 billion to $2.9 billion for the buyers.

    Market watchers said the breakeven cost for a new condo on the site may be about $1,200 to $1,300 psf. At 838,488 sq ft, Farrer Court also has the biggest land area for a collective sale site transacted.

    CapitaLand will lead the consortium buying Farrer Court, with a 35 to 40 per cent stake. HPL said its stake is expected to be 20 to 30 per cent.

    CapitaLand said the plan is to redevelop the site into a new 36-storey condo with about 1,500 generously-sized apartments. The project will be ready for launch in first-half 2009. CapitaLand is the lead development manager.

    'Existing owners will be given the first right of refusal to purchase units in the new development, similar to what was extended to former owners of Char Yong Gardens and the site for The Seafront on Meyer,' CapitaLand Group president and CEO Liew Mun Leong said yesterday. 'The Farrer Court site is a large-sized property that will give us the opportunity to work with world renowned architects who have an international portfolio, to create a unique landmark project.'

    The transaction is expected to be completed by Q2 2008.

    CapitaLand said its latest acquisition of Farrer Court will increase the size of the residential landbank the group is managing in Singapore to about 5.5 million sq ft of potential gross floor area.

    The tender for Farrer Court, which closed on Wednesday afternoon, attracted one other bidder - believed to be GuocoLand, which earlier this year bought the nearby freehold Leedon Heights site for $835 million or $1,062 psf per plot ratio.

    Farrer Court is the only private residential site in the Farrer Road and Holland Road area accorded a high plot ratio of 2.8 and a maximum height of 36 storeys. Most of the surrounding sites are designated for either landed housing or low or medium-rise developments.

    When signing of the collective sale agreement began in late September last year, the initial proposed reserve price was $700 million. By January this year, this had been revised upwards to $840 million, with a final revision to $1.2 billion in March.

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    Default Re: CapitaLand buys Farrer Court for S$1,338.8 million

    June 29, 2007

    Farrer Court sold for record $1.3b

    Owners of 618 units will get $2.15m each; buyer CapitaLand plans 36-storey condo

    By Joyce Teo, Property Correspondent




    PROPERTY giant CapitaLand is paying $1.3388 billion for the sprawling Farrer Court estate - the biggest lump sum ever shelled out for a residential site in Singapore.

    Owners at the 618-unit estate will get about $2.15 million each, depending on the size of their flats, which range from 1,453 sq ft to 1,615 sq ft.

    The bumper price for the former HUDC estate beat the reserve price of $1.2 billion but fell short of the owners' asking price of $1.5 billion.

    It also signals how high and how fast prices have risen this year. Farrer Court owners had revised their reserve price from $700 million to $840 million at the start of the year, only to push it up to $1.2 billion in March.

    Credo Real Estate, which brokered the deal, said the sale is also the largest one in terms of land area, number of units and buildable gross floor area.

    Farrer Court, which is 30 years into a 99-year lease, sits on 838,488 sq ft of land near the junction of Farrer Road and Holland Road. It is also close to the upcoming Farrer MRT Station.

    It is the only site on Farrer Road with the potential to be built up to 36 storeys.

    CapitaLand said it plans to build a 'luxurious' 36-storey condominium with about 1,500 'generously-sized' flats on the site, which will be ready for launch in early 2009.

    Existing Farrer Court owners will have the first right of refusal to buy units at the new development, it said.

    CapitaLand president and chief executive Liew Mun Leong said the deal would further boost its residential land bank, allowing it to benefit from Singapore's 'growth story'.

    The site also gives the developer the chance to work with world-renowned architects to create a unique landmark project, he added.

    The Farrer Court tender closed on Wednesday and attracted two bids, both above the reserve price.

    Credo Real Estate declined to comment on the second bid, but sources said it came from GuocoLand, which had paid a then-record $835 million for the freehold Leedon Heights site in Holland Road in April.

    CapitaLand's price for Farrer Court works out to about $762 to $783 per sq ft (psf) of potential gross floor area.

    This psf price includes about $450 million to $500 million to maximise the use of the land and to top up the lease to a fresh 99-year tenure.

    The deal is subject to the approval of the Strata Titles Board and should be completed by the second quarter of next year.

    CapitaLand intends to share its risks with partners but will be the lead development manager for the project.

    It said yesterday that Hotel Properties (HPL), US-based Wachovia Development Corp and possibly a foreign fund will join it in the venture.

    CapitaLand is likely to hold 35 to 40 per cent of the joint venture while HPL expects to take a 20 to 30 per cent interest.

    HPL took a stake in an earlier CapitaLand purchase of another former HUDC estate, Gillman Heights, in Alexandra Road, which cost $548 million, or $363 psf of potential gross floor area.

    The sale of Farrer Court leaves the 290-unit Pacific Mansions in River Valley Close as the only estate up for sale at more than $1 billion.

    Owners of Pacific Mansions are asking for $1.18 billion or about $2,400 psf of potential gross floor area.

    [email protected]
    Last edited by mr funny; 30-06-07 at 06:32.

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    Default Re: CapitaLand buys Farrer Court for S$1,338.8 million

    Friday, June 29, 2007

    Farrer Court sold for $1.34b

    Joseph yadao

    [email protected]


    Property analysts had predicted that it was not likely to happen, but the local real estate market has just witnessed its first collective sale to bust the billion-dollar mark.

    CapitaLand yesterday got the nod to buy Farrer Court collectively for $1.3388 billion, and plans to transform the ageing HUDC estate into a luxurious condominium with the help of partners including Hotel Properties (HPL).

    The transaction price is below the $1.5 billion that the 618 homeowners had asked for.

    Still, each seller is in line to receive between $2.122 million and $2.238 million, based on their apartment sizes ranging from 1,453- to 1,615 sq ft.

    The owners have also been given the first right of refusal to buy the new homes that CapitaLand plans to build. This means they will be invited to a preview launch of the new development slated to be launched in the first half of 2009.

    CapitaLand's grand plans for the 838,488-sq-ft site will include partners: HPL, Wachovia Development Corp and possibly a foreign fund, said Ms Patricia Chia, chief executive of CapitaLand Residential Singapore.

    Together, hey will build a luxury 36-storey condominium with 1,500 units — more than doubling the number of apartments on the existing site located at the corner of Leedon Heights and Farrer Road.

    The project promises to be "a unique landmark project" created by "world-renowned architects who have an international portfolio", said CapitaLand Group chief Liew Mun Leong.

    Each consortium member will own part of a joint venture named Morganite. HPL said its stake would be between 20 and 30 per cent.

    The deal works out to $762 to $783 per square foot per plot ratio, after taking into account the differential premium of $450 million to $500 million to refresh the lease to a 99-year tenure and to maximise the plot ratio to 2.8.

    With the approval of the Strata Titles Board, the transaction is expected to be completed by the second quarter of next year.

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    ha ha ha wat a joke....capitalland so going to sell for how much..2000psf...

  11. #11
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    Quote Originally Posted by spec008
    ha ha ha wat a joke....capitalland so going to sell for how much..2000psf...
    Gillman Height will be 1500psf liao, what do u think?

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    gillman heights at 1500psf? can't be lah...1300 max liao.


    Quote Originally Posted by jitkiat
    Gillman Height will be 1500psf liao, what do u think?

  13. #13
    OCR properties going to crash!

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    I guess New Farrer Court condo should be at least $1400-1500 psf?

    Quote Originally Posted by bargain hunter
    gillman heights at 1500psf? can't be lah...1300 max liao.

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    farrer court pretty sure they will ultimately want to sell above 1500psf esp for the super high floors (only development in that area can go up to 36 storeys i think), but not gillman hee.

    Quote Originally Posted by teddybear
    I guess New Farrer Court condo should be at least $1400-1500 psf?

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    Very good analysis on pricing

  16. #16
    Junior

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    ... and it gives u the evidence who really understands this business..

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    Yup, gurus...... So nice to learn from the experts

  18. #18
    Junior

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    Thumbs up! Maybe will be like "he" say, will have $400psf upside ! PLS COME HERE PREDICT HOW MUCH TULIP SELL IF EN BOC!

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