Collective sales: Heightened uncertainty

September 16, 2022

The 71-unit Orchard Bel-Air, where the first collective sale attempt closed on Sept 6 without any bids (Photo: Knight Frank)

Although Singaporean Jason Tan was not in the collective sale committee (CSC) of Orchard Bel Air, a prime District 10 condo along Orchard Boulevard, he took an active interest in the process as a homeowner — and a potential beneficiary if the collective sale proved to be a success. When the collective sale process began 15 months ago, Tan, who is also a realtor and executive director of JTResi marketing agency, was all for it. He even encouraged others to support the collective sale.

“The main thing was to secure the 80% consensus and get the collective sale launched,” he says. “After all, there is only 57 years left on the lease.”

The collective sale of Orchard Bel Air was launched by marketing agency Knight Frank on July 27 at $587.5 million. The tender closed on Sept 6 without a bid, and the 10-week private treaty phase has begun and is expected to close on Nov 14.

However, Tan has had a change of heart since the launch of the collective sale tender. Based on the $587.5 million reserve price, Tan and the other owners of the 3,229 to 3,261 sq ft, four-bedroom apartments would get a payout of about $8.1 million, while the owner of the sole 6,512 sq ft penthouse would walk away with at least $16.3 million.

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