Collective sale: Pine Grove gets nod at latest attempt

[moneyspinner]

Really doubt if any of these mega enblocs with the sky high asking prices will go through. Let's see.

[mr funny]

http://www.businesstimes.com.sg/sub/...23940,00.html?

Published November 17, 2010

Pine Grove to en bloc, $1.7b reserve price: report


THE 99-year leasehold Pine Grove in Ulu Pandan could be up for collective sale again with an estimated reserve price of $1.7 billion, said Channel NewsAsia yesterday.

The deal, if successful, would be the largest in the collective sales market since Farrer Court changed hands for $1.34 billion in 2007.

Channel NewsAsia said that property agents have been gathering residents' signatures since November last year, and they have amassed 80 per cent of votes for the collective sale to start. A cooling period is now in place in case residents change their minds.

The 660-unit Pine Grove is a former HUDC estate. Several discussions had taken place between agents and residents to sell the estate in the last few years. The en bloc fever was particularly strong in 2007 as the property market heated up and developers snapped up several estates.

But not all residents in Pine Grove were keen on a deal then. A 'Save The Pine Grove' group was even formed to stop the sale process.

The collective sales market took a breather during the financial crisis and has revived recently, but deals have involved mostly smaller estates with more affordable price tags.

[mr funny]

http://www.straitstimes.com/Money/St...ry_604147.html

Nov 17, 2010

Collective sale: Pine Grove gets nod at latest attempt

Reserve price of $1.7b beats record set by Farrer Court in 2007

By Esther Teo


PINE Grove residents have successfully obtained the crucial 80 per cent approval needed to embark on a collective sale of their sprawling Ulu Pandan estate.

This follows failed attempts to do so last year and during the 2007 boom.

The reserve price has been set at $1.7 billion, which means Pine Grove could become Singapore's largest residential collective sale, beating the $1.34 billion record set by Farrer Court in 2007.

The Straits Times understands that the condominium's latest attempt at a collective sale crossed the requisite 80 per cent majority approval threshold last Saturday. Jones Lang LaSalle is the marketing agent.

The process, however, is now going through a five-day 'cooling off' period during which home owners may change their minds. The period begins after a collective sale agreement is signed. The measure was introduced this year.

The collection of signatures at the 660-unit former Housing and Urban Development Company (HUDC) estate on 893,178 sq ft of land started on Nov 15 last year. Many units are 1,754 sq ft in size.

The reserve price of $1.7 billion could work out to be between $2.1 million and $2.75 million per unit, depending on the apartment size and development charge.

Resident Sing Tien Foo, who has been living at the estate since 2003, said it would be good to have the place redeveloped.

But the associate professor at the National University of Singapore added that there were many residents who have strong attachments to the estate.

'I have mixed feelings about the sale as well. While we will get a higher price than if we sell the units individually, I like this place very much,' he said.

Mr Colin Tan, research and consultancy director of property firm Chesterton Suntec International, said Pine Grove was likely to be redeveloped into a high-end to luxury development.

It is in a good location, he said, in an established expatriate area near an international school and close to an area of good-class bungalows.

Mr Tan added that bigger property players or joint ventures formed to mitigate the level of risk are likely to bid as the reserve price of $1.7 billion is a very large sum to stump up.

'The luxury market hasn't quite recovered yet, so if we are targeting developers who plan to launch such luxury condos, then maybe it isn't the right time to launch the sale yet... although the market is likely to pick up in the future.'

Pine Grove's collective sale attempt in 2007 failed to bear fruit, even though the average payout was eventually raised to about $2 million a unit.

The current record for a collective sale is held by Farrer Court located along Farrer Road, also a former HUDC estate. It was sold to CapitaLand and had a development charge of about $500 million.

[email protected]

[mr funny]

http://www.straitstimes.com/Money/St...ry_604912.html

Nov 19, 2010

PINE GROVE COLLECTIVE SALE

$1.7b reserve price: Will builders bite?

Joint bids likely, say analysts, pointing to cautious mood

By Francis Chan & Yasmine Yahya


PINE Grove is set to be put up for collective sale but its high $1.7 billion reserve price - the same carrot that enticed residents to support the sale - may put off potential bidders, say market experts.

But most still think there would be no lack of interest from developers, which could submit joint bids for the sprawling site off Ulu Pandan Road, home to 660 units.

'I wouldn't say the price would turn them away, but it's very likely that they will form consortiums to bid for it,' said Ms Tay Huey Ying, Colliers' director of research and advisory.

Mr Colin Tan, research and consultancy director of Chesterton Suntec International, was more optimistic, saying that with the world flush with liquidity at the moment, 'anything can happen'.

But he pointed out that developers may be cautious since other projects launched between 2007 and 2008 in the area have not been fully sold yet.

'Projects like The Interlace, Farrer Court... these are huge projects that are still not fully sold,' said Mr Tan. 'So who would build a similar project when you have other existing projects that have not been fully sold?'

Jones Lang LaSalle has been appointed the marketing agent of the estate, which sits on 893,178 sq ft of land.

News broke earlier this week that the requisite 80 per cent of residents from the estate had given their support for the collective sale. This, said some Pine Grove residents yesterday, was after the reserve price had been revised upwards to $1.7 billion earlier this month.

'Some of my neighbours were still undecided, but changed their minds after they received the notice about the latest price revision,' said a 47-year-old resident from Block 1B.

At $1.7 billion, owners could receive between $2.1 million and $2.75 million per unit, depending on the size of the apartment and development charge. Most of the units are 1,754 sq ft in size.

If the sale does go through, Pine Grove would become Singapore's largest residential collective sale, beating the previous record of $1.34 billion paid for Farrer Court in 2007.

The collection of signatures from residents started on Nov 15 last year, said a resident from Block 1C.

This latest collective sale attempt by Pine Grove residents follows at least two previous failed attempts - one in 2007 and another last year. This time, collective sale committee members and property agents went door-to-door to seek support for the sale in the days leading up to the Nov 14 deadline.

'They were very proactive this time and my parents thought it was a good price, so they have agreed to it,' said a resident from Block 1P.

Residents who do not want to sell their homes, however, said they felt harassed and pressured to put pen to paper.

'Where else can I get such a spacious home?' said a semi-retired woman who has been living in Block 1B for 15 years. 'Here, I don't even close my windows and main door.'

Residents are in for a nervous few weeks as they wait for the official confirmation that an 80 per cent mandate to start the sale has been received.

[email protected]

[email protected]

[dlinq]

Does anybody here happens to know the apportionment method for Pinegrove?