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Thread: Tulip Garden sold for S$906.9 million in second-largest en bloc deal this year

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    Default Tulip Garden sold for S$906.9 million in second-largest en bloc deal this year

    https://www.todayonline.com/tulip-ga...bloc-deal-year

    Tulip Garden sold for S$906.9 million in second-largest en bloc deal this year

    [email protected]

    Published 12 APRIL, 2018


    SINGAPORE – Farrer Road freehold development Tulip Garden has sold for S$906.9 million, making it the second-largest en bloc deal so far this year.

    The sale price is 20.4 per cent higher than its asking price of S$753 million. Owners of the 162-unit development, consisting of apartments, maisonettes and two shop units, will each net S$4.3 million to S$7.6 million, marketing agent Colliers International announced on Thursday (April 12).

    Clinching the deal was Asia Radiant, an entity jointly held by MCL Land and Yanlord Land Group.

    The sale price works out to a land rate of S$1,790 per square foot per plot ratio (psf ppr), which surpasses that of recent collective sale transactions in the area, such as Hollandia (S$1,703 psf ppr), and The Estoril (S$1,654 psf ppr), said Colliers International.

    The largest en bloc deal this year was Pacific Mansion at River Valley Close, which was sold for S$980 million last month (about S$1,806 psf ppr, inclusive of a 10 per cent bonus gross floor area for balconies) to a consortium formed by Guocoland (Singapore), Intrepid Investments and Hong Realty.

    Experts say the collective sale market is expected to continue in its exuberance, and more record deals could be inked.

    While the owners of a 1,701 square feet Tulip Garden unit will reap about S$4.3 million from the sale, a unit of the same size in the estate sold for about S$2.1 million only a year ago.

    The latest sale reflects developers’ keen interest and deals worth over S$900 million or S$1 billion will “not be rare”, said ZACD Group executive director Nicholas Mak.

    Mr Mak estimates a break-even cost for the Tulip Garden site to be S$2,420 to S$2,500 psf.

    Mr Alan Cheong, senior director at property research and consultancy Savills, expects collective sale prices going forward to be “rewritten”. However, the fact that Tulip Garden and Pacific Mansion were clinched by joint ventures shows developers are mitigating their risks, he said.

    Mr Mak said the joint ventures were due to the sheer size of the developments and prices involved. “Once tenders go above S$800 million, typically it would be submitted by a joint venture or consortium,” he said.

    The Tulip Garden site spans 316,708 square feet in land size and is a residential zone with a gross plot ratio of 1.6, with an allowable height of up to 12 storeys.

    Colliers International managing director Tang Wei Ling said the site was appealing because of its large contiguous land area, which will offer greater flexibility in the planning and development of the new residential project.

    It was Tulip Garden’s fourth en bloc attempt and unit owners are “extremely delighted” by the sale price, which exceeded expectations, said Mr Ng Kee Wah, chairman of its collective sale committee.

    The collective sale tender was launched on February 28 and closed on April 11.

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    Freehold Tulip Garden sold en bloc for $907m

    Apr 13, 2018

    Joint entity of Yanlord Land Group and MCL Land clinches second biggest collective sale deal this year

    Yunita Ong



    A joint entity of Chinese developer Yanlord Land Group and MCL Land has bought freehold Tulip Garden for $906.9 million - the second biggest collective sale this year.

    The price is 20.4 per cent higher than the reserve of $753 million submitted by owners of the 316,708 sq ft estate completed in 1985.

    Tulip Garden, comprising 162 apartments and maisonettes and two shop units, is in District 10 and close to Holland Village and a Good Class Bungalow area.

    Each residential unit owner could get between $4.3 million and $7.6 million, depending on the size of the home - unit sizes range from 1,701 to 3,412 sq ft.

    It is a case of fourth-time lucky for Tulip Garden owners. The development was actually sold in July 2007 during its first try, but the buyer - a consortium led by Bravo Building Construction - backed out after struggling to raise funds amid the developing financial crisis.

    Bravo forfeited its 5 per cent deposit of $25.8 million, which the owners kept. Reports suggested at the time that they each stood to reap about $100,000.

    This time the process should be far smoother.

    Colliers International managing director Tang Wei Leng said: "Despite a spate of collective sale deals done in the Holland Road area in recent months and a large slate of redevelopment sites on the market, the tender for Tulip Garden still attracted very keen interest - a testament to its excellent locational attributes."

    The sale price works out to a land rate of $1,790 per sq ft per plot ratio (psf ppr). This is higher than recent collective sales in the area such as the $1,703 psf ppr for Hollandia, the $1,654 psf ppr for The Estoril and $1,536 psf ppr for The Wilshire.

    The Tulip Garden site could yield up to 670 residential units with its plot ratio of 1.6, said Yanlord in a Singapore Exchange announcement after trading hours yesterday.

    There is no development charge payable for redevelopment up to a gross plot ratio of 1.6, said Colliers.

    The acquisition is Yanlord's first venture in Singapore's prime freehold residential property market.

    The biggest collective sale deal this year is Pacific Mansion in River Valley, which was acquired by GuocoLand, Intrepid Investments and Hong Realty for $980 million.

    Yanlord said the acquisition and development of the project will be financed by internal resources and bank borrowings.

    Yanlord Land shares closed two cents up at $1.75, before the announcement was made.

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    Yanlord, MCL bag Tulip Garden for S$907m, 20% above reserve price

    Deal is second highest en bloc value for 2018; site could potentially yield up to 670 residential units

    Fri, Apr 13, 2018

    Yunita Ong


    A YANLORD Land Group and MCL Land joint venture has successfully bagged the freehold Tulip Garden for S$906.889 million, the nation's second largest collective sales deal so far in 2018.

    The sale price is 20.4 per cent higher than the reserve price of S$753 million for the 316,708 sq ft freehold estate when the tender was launched on Feb 28.

    The tender also marks Yanlord's maiden entry into Singapore's prime freehold residential property market.

    Tulip Garden comprises 162 apartments and maisonettes and two shop units. It is located in District 10 close to Holland Village and a Good Class Bungalow area.

    Depending on the size, which ranges from 1,701 sq ft to 3,412 sq ft, each residential unit owner could receive between S$4.3 million and S$7.6 million.

    The sale price works out to a land rate of S$1,790 per sq ft per plot ratio (psf ppr).

    This is higher than recent collective sales transactions in the area such as the S$1,703 psf ppr for Hollandia, S$1,654 psf ppr for The Estoril and S$1,536 psf ppr for The Wilshire, said marketing agent Colliers International in a statement.

    Tang Wei Leng, managing director at Colliers International, said: "Despite a spate of collective sale deals done in the Holland Road area in recent months and a large slate of redevelopment sites on the market, the tender for Tulip Garden still attracted very keen interest - a testament to its excellent locational attributes."

    Targeted for completion by 2023, the redeveloped project could potentially yield up to 670 residential units with its plot ratio of 1.6, said Yanlord in a Singapore Exchange announcement after trading hours on April 12.

    It is zoned for an allowable height of up to 12 storeys. No development charge is payable for redevelopment up to a gross plot ratio of 1.6, said marketing agent Colliers International in a statement.

    The acquisition is being made by Asia Radiant, an entity jointly held by the mainboard-listed Yanlord, a China developer of high-end property projects, and MCL, a unit of Hongkong Land Holdings.

    Yanlord has developed large-scale residential property developments in China such as Yanlord Gardens, Yanlord Riverside Gardens and Yanlord Riverside City in Shanghai and Orchid Mansions, Bamboo Gardens and Yanlord International Apartments in Nanjing.

    "As a key global financial centre, Singapore's residential market presents a good value proposition for developers seeking to develop additional growth opportunities," Yanlord's chairman and chief executive Zhong Sheng Jian said in the announcement. "With a mature suite of lifestyle offerings, this freehold site has strong potential for development and leveraging on our development capabilities as well as that of our partner, we hope to develop this land parcel into a new landmark development."

    MCL Land also clinched another huge en bloc site when it bought Eunosville for S$765.78 million in 2017.

    So far this year, the highest residential collective sale deal belongs to Pacific Mansion in River Valley, which was acquired for $980 million by Singapore-listed GuocoLand, along with Intrepid Investments and Hong Realty.

    It is a case of fourth time lucky for Tulip Garden owners. The development was sold in July 2007 during its first try, but the buyer - a consortium led by Bravo Building Construction - backed out after it had trouble raising funds.

    "The owners are extremely delighted with the excellent outcome achieved by Colliers for the Tulip Garden tender," said Ng Kee Wah, chairman of the collective sale committee. "The price garnered in the deal was over and beyond our expectation."

    Yanlord said the acquisition and development of the project will be financed by internal resources and bank borrowings.

    Yanlord rose 2 Singapore cents to close at S$1.75 before the announcement was made.

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