LH 99 condos, any potential for en bloc?

[kengyong]

dear all,

i am trying to figure out the feasibility of en blocs for old leasehold 99 condos..

Can everybody help to append the list of LH99 condos that were succesfully en bloc at the height of 06/07 fever


Seem like off hand I can only think of 3.

1. Farrer Court
2. Gillman Height
3. Minton Rise?

[cashrich]

duno why u asked this... u wanna enblock some LH 99 development?

Draycott park done in june 1997 at $1,104 psf ppr paid by a Wing Tai unit, which it has since developed into the Draycott 8 condo.

LH99's with potential... need to be in town or near town.

(1) Jackie Chan’s condo sold to OUE

District 9 The Grangeford in the Grange Road/Leonie Hill vicinity has been sold to Overseas Union Enterprise (OUE) at a unit land price of $1,810 per square foot per plot ratio, including a differential premium of $92.7 million payable for topping up the remaining lease to its original 99 years.

The 193 owners of Grangeford, including Hong Kong movie star Jackie Chan, will pocket a total of $625 million.

Past en bloc sale record

Year Volume ($ mil) No. of transactions

1996 1,984.4 38
1997 1,264.1 22
1998 17.9 1
1999 2,407.7 42
2000 1,464.2 19
2001 83.5 3
2002 161.6 6
2003 557.7 10
2004 685.9 14
2005 2,054.3 37
2006 7,750.7 62
2007 6,381.4 39

Parisian at Angullia Park, Leedon Heights ($835 million), Gillman Heights ($548 million), Horizon Towers ($500 million), Farrer Court ($1.3388 billion) and Tulip Garden ($548 million).

[kengyong]

Hi Cashrich

thanks for your input.

The reason that I posted this question was because I am thinking of investing in some older developments with potential for en bloc.

However, I was under the impression that condos on 99 years stand a lower chance. (although one of my frens think otherwise)

That was why I wish to find out which condos on 99 years LH got successfully en bloced during the 06/07 feverish period.

You are right on Draycott Park and Grangeford,

But Leedon Height, Parisian and Tulip garden are freehold

Horizon tower (LH99) did not succeed, hence should not be within the list.

I believe there were plenty of LH99 condos, with big land size, e.g. Laguna Park, Pine Grove, Hillcrest , Tampines court just to name a few, tendered for en bloc, but mostly did not went thru..

duno why u asked this... u wanna enblock some LH 99 development?

Draycott park done in june 1997 at $1,104 psf ppr paid by a Wing Tai unit, which it has since developed into the Draycott 8 condo.

LH99's with potential... need to be in town or near town.

(1) Jackie Chan’s condo sold to OUE

District 9 The Grangeford in the Grange Road/Leonie Hill vicinity has been sold to Overseas Union Enterprise (OUE) at a unit land price of $1,810 per square foot per plot ratio, including a differential premium of $92.7 million payable for topping up the remaining lease to its original 99 years.

The 193 owners of Grangeford, including Hong Kong movie star Jackie Chan, will pocket a total of $625 million.

Past en bloc sale record

Year Volume ($ mil) No. of transactions

1996 1,984.4 38
1997 1,264.1 22
1998 17.9 1
1999 2,407.7 42
2000 1,464.2 19
2001 83.5 3
2002 161.6 6
2003 557.7 10
2004 685.9 14
2005 2,054.3 37
2006 7,750.7 62
2007 6,381.4 39

Parisian at Angullia Park, Leedon Heights ($835 million), Gillman Heights ($548 million), Horizon Towers ($500 million), Farrer Court ($1.3388 billion) and Tulip Garden ($548 million).

[devilplate]

prime 99LH stand higher chance

nvr buy 99LH in surburbs to hope for enbloc. developer can acquire surburb lands from GLS

[eleong]

Actually, Eng Cheong Towers in 2005 preceded the recent L99 enblocs such as Farrer Court, Gillman, Grangeford etc. This case kind-of paved the way for L99 enblocs and probably narrowed the so-called FH premium.

As quoted from the news report then, "This is the first time SLA has granted in-principle approval for lease upgrading, which allowed the owners of Eng Cheong Tower to go ahead with a collective sale. Usually SLA processes requests for lease upgrading only on formal application, on the merits of each case and the government's long-term plans for the area, among other factors."

One of the risk of L99 enbloc is the lease top-up, which may be quite a substantial amount. In addition to land, construction cost and development charges if any, which apply to both FH and LH sites, buyers of LH sites will also have to contend with lease top-up. This may mean lower prices for the owners, which may not be enticing enough for them to agree to the enbloc.

Second risk is the lease top-up approval from SLA, which is definitely not a sure thing. Approval will probably depend on the long-term land use plan for that area. There have been cases in which applications have been rejected or approved but with shorter top-ups. Developers will probably have problems selling new developments with shorter than 99 yr leases.

Then, there are also a handful, I think, of L99 sites where leases are from private parties and not from the Govt.

[cashrich]

Actually, Eng Cheong Towers in 2005 preceded the recent L99 enblocs such as Farrer Court, Gillman, Grangeford etc. This case kind-of paved the way for L99 enblocs and probably narrowed the so-called FH premium.

As quoted from the news report then, "This is the first time SLA has granted in-principle approval for lease upgrading, which allowed the owners of Eng Cheong Tower to go ahead with a collective sale. Usually SLA processes requests for lease upgrading only on formal application, on the merits of each case and the government's long-term plans for the area, among other factors."

One of the risk of L99 enbloc is the lease top-up, which may be quite a substantial amount. In addition to land, construction cost and development charges if any, which apply to both FH and LH sites, buyers of LH sites will also have to contend with lease top-up. This may mean lower prices for the owners, which may not be enticing enough for them to agree to the enbloc.

Second risk is the lease top-up approval from SLA, which is definitely not a sure thing. Approval will probably depend on the long-term land use plan for that area. There have been cases in which applications have been rejected or approved but with shorter top-ups. Developers will probably have problems selling new developments with shorter than 99 yr leases.

Then, there are also a handful, I think, of L99 sites where leases are from private parties and not from the Govt.

good sharing... all correct.

some leases are even 60 years or 30 years... lol...

some sold on land without leases... recent meng suan area case was in the news.

If govt align... they might also align with surrounding plot's to end at the same time.

LH99 is only good if the top up lease price is indeed insignificant as compared to the value of development unlocked. Otherwise, wait long long...

[kengyong]

Thanks for the input

So South Bank is what Eng Cheong Tower used to be.. learn something new here..

the list goes like this..

1. Farrer Court
2. Gillman Height
3. Minton Rise
4. Draycott Park
5. Grangeford
6. Eng Cheong
7. Amberville

good sharing... all correct.

some leases are even 60 years or 30 years... lol...

some sold on land without leases... recent meng suan area case was in the news.

If govt align... they might also align with surrounding plot's to end at the same time.

LH99 is only good if the top up lease price is indeed insignificant as compared to the value of development unlocked. Otherwise, wait long long...

[Autonomy]

Interesting article on en bloc potential of LH99 properties...

http://www.propertybuyer.com.sg/arti...ium-go-enbloc/

Looks unlikely for LH99 properties to go en-bloc according to article.