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Thread: Mandarin Gardens en bloc bid grinds to a halt, after failing to get 80% approval from

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    Default Mandarin Gardens en bloc bid grinds to a halt, after failing to get 80% approval from

    Mandarin Gardens en bloc bid grinds to a halt, after failing to get 80% approval from owners

    Mandarin Gardens has failed in its en bloc attempt, about a month after raising its asking price to a record S$2.9 billion. Wendy Wong looks at what this spells for other outstanding deals.



    SINGAPORE: Mandarin Gardens has failed in its en bloc attempt, about a month after raising its asking price to a record S$2.9 billion.

    The leasehold condominium managed to gather around 68 per cent of signatures as of Mar 24 when its collective sales agreement expired - about 12 per cent shy of the 80 per cent mandate required to launch a tender.

    In a message to owners on Sunday (Mar 24), the site's collective sale committee (CSC) said: "This being our first attempt at collective sales, we have learned valuable lessons which will certainly be very helpful in our next journey.

    "A similar attempt in 2008 came to a close, as we were about to appoint the marketing agent and lawyer. At that point of time, the worldwide financial crisis was triggered by the collapse of the Lehman Brothers.

    "The general feeling is that the current market sentiment for en bloc sales is heading south as evidenced by the non-bidders in the tender process of several large estates."

    The 1,017-unit project first raised its asking price from S$2.479 billion to S$2.788 billion last November, after owners found that the land parcel it was sitting on was undervalued by more than S$300 million.

    The CSC again raised the reserve price by 5 per cent to "better help achieve the 80 per cent consensus required", it said in a letter to owners on Feb 21.

    "The CSC would like to thank all the approximately 70 per cent subsidiary proprietors who voted for the collective sales and hope you will continue to support the effort when the next round of en bloc sales is launched, hopefully in the not too distant future," the committee said.

    The news comes amid a slowing of the en bloc market, which saw more than 40 projects close their tenders without a bid since the latest round of cooling measures kicked in last July, according to Huttons Asia.

    If the en bloc deal had gone through, it would have been the most expensive collective sale struck in Singapore, surpassing the S$1.34 billion sale of Farrer Court in 2007.

    The failure of Mandarin Gardens' en bloc attempt puts the spotlight on former HUDC Braddell View.

    Marketing agent Colliers International announced last week that the 920-unit development had achieved the requisite 80 per cent consent from owners to go ahead with the en bloc.

    The 1.14 million sq ft hilltop site - the largest among the 18 former HUDC estates islandwide - has a reserve price of S$2.08 billion.

    The public tender will open on Mar 27 and close on May 28.

    Source: CNA/na(rw)

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    Default Re: Mandarin Gardens en bloc bid grinds to a halt, after failing to get 80% approval

    Collective sale: Mandarin Gardens fails to get green light

    Mandarin Gardens first raised its asking price to $2.788 billion in November last year after the owners discovered that the land parcel was undervalued. Among reasons cited by owners who did not want to sell are the attractiveness of the location, which is sea-facing and has an MRT station coming up nearby, and the spaciousness of the units.


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    Mandarin Gardens, a sprawling leasehold condominium in Siglap, has failed in its attempt to sell en bloc, despite a record-high asking price of $2.927 billion.

    On Sunday, the day the collective sales agreement expired, it had been signed by only 68 per cent of the units, below the 80 per cent required for the land to be put up for sale.

    The property's collective sales committee (CSC) chairman Vincent Teo said in a letter to owners on Sunday the committee would be dissolved on Monday and he hoped those who had signed the current agreement would support an attempt to form a new committee.

    "This being our first attempt at collective sales, we have learnt valuable lessons which will certainly be very helpful," he said.

    An attempt in 2008 failed before a collective sales agreement was prepared, as the global financial crisis had begun, he said.

    Last month, the 1,017-unit leasehold condo raised its asking price to $2.927 billion to encourage more owners to agree to the collective sale.

    It first raised its asking price to $2.788 billion in November last year from $2.479 billion after the owners discovered that the land parcel was undervalued.

    If the collective sale had gone through, it would have been the biggest transaction in dollar terms struck here.

    Prospects for such mega sites may have cooled. A number of big projects closed their tenders recently without any bids.

    These included Horizon Towers, which closed on Jan 28 after it had launched for a second time at the same reserve price of $1.1 billion.

    Still, some are trying their luck.

    Braddell View, Singapore's largest private residential site, will be launched for collective sale by public tender tomorrow at a reserve price of $2.08 billion. The tender for the largest of Singapore's 18 former Housing and Urban Development Company estates will close at 3pm on May 28.

    Mandarin Garden's Mr Teo said in his letter that the general feeling is that current market sentiment for collective sales is heading south, as evidenced by a lack of bids in the recent tender process of several large estates.

    But he said that should market sentiments permit, a fresh collective sale process can be initiated without having to wait for a two-year lapse period, if 50 per cent of owners by share value sign a requisition for a general meeting to form a new CSC.

    "The CSC would like to thank all the (owners) who voted for the collective sale and hope you will continue to support the effort when the next round of en bloc sales is launched, hopefully in the not too distant future," he said.

    He told The Straits Times yesterday that among the reasons some owners did not want to sell is the attractiveness of the location, which is sea-facing and has an MRT station coming up nearby on the Thomson-East Coast Line.

    "Some people also said it would be hard to find a replacement unit which is so spacious," he said.

    The units in the condo range from 732 sq ft to 3,800 sq ft.

    Property expert Nicholas Mak, who is executive director of ZACD Group, said that as Mandarin Gardens is such a large site, it would be an uphill task to get the required number of signatures for the collective sale agreement, compared with a small site of, say, 30 units.

    The cooling measures implemented by the Government last July "knocked the wind out of the sails of quite a few en bloc sales", he added.

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