Dairy Farm en bloc bid fails, Laguna Park relaunched for sale

Only 71.35% of owners support Dairy Farm's bid; Laguna Park reserve price is S$1.48b

Tue, Apr 09, 2019

IT'S a tale of two large collective sale sites - while the Dairy Farm estate failed to hit the 80 per cent threshold needed, Laguna Park was re-launched for sale.

The collective sale agreement for Dairy Farm estate expired on April 6 with 71.35 per cent of owners signing, falling short of the signatures required to get the mandate to launch an en bloc tender. This was after the reserve price was raised from S$1.688 billion to S$1.84 billion as a sweetener.

"As on 6th April or the expiry date of the collective sales agreement (CSA), owners of 345 units out of the estate's 487 units have signed the CSA to support the collective sale," said Sieow Teak Hwa, managing director of marketing agent Teakhwa Real Estate, adding that the signatures constitute 71.35 per cent by share value and 70.11 per cent by strata area. "Despite our best effort and time committed to assist owners in the project, we are short of the required 80 per cent mandate for the collective sale to go through."

The freehold development sits on a 750,019 square foot site and comprises 477 residential units and 10 retail shops, with the new Hillview MRT station a short walk away. Dairy Farm's last collective sale bid was in 2007.

Meanwhile, 99-year leasehold, high-rise Laguna Park was re-launched for sale by tender at a reserve price of S$1.48 billion, marketing agent Knight Frank said on Monday.

The private residential estate in the East Coast area was previously put up for collective sale in September 2018, after two attempts by owners of the development in 2007 and 2010.

Comprising seven blocks of 516 residential units and 12 commercial units, it sits on a site area of 62,197.25 square metres (around 669,485 sq ft) and offers dual frontage onto Marine Parade Road and Siglap Link.

With an estimated additional differential premium of around S$407.4 million for the intensification of the site to a plot ratio of 2.8 under URA's 2014 Master Plan, and a lease top-up premium estimated at S$420.7 million for a fresh 99-year lease - subject to authorities' approval - this translates to a land rate of S$1,231 per square foot per plot ratio (psf ppr).

As a result of development charges being adjusted downwards by the Urban Redevelopment Authority, the land rate is now slightly lower than the S$1,253 psf ppr announced last September.

Based on the potential GFA and assuming an average unit size of 100 sq m, this could translate to 1,741 new residential units.

Ian Loh, head of investment and capital markets at Knight Frank Singapore, said: "With Laguna Park over 40 years old, maintenance cost is expected to go up. Owners are open to achieve a sale by moderating their price expectations." He added that the development offers both panoramic sea views and the convenience of the upcoming Siglap MRT station, which will be ready by 2023.

The tender for Laguna Park will close on May 8 at 3pm.