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Thread: Meng Garden Apartments

  1. #1
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    Default Meng Garden Apartments

    Meng Garden Apartments off Killiney Road has gone on collective sale for $137 million or approximately $1,380 psf ppr, including a development charge of about $681,000 – taking the year-to-date tally to 16 deals at approximately $786 million.

    Boutique developer TG Development, which acquired Meng Garden, does not need to seek approval from the Strata Titles Board for the deal, as the sale’s broker, CB Richard Ellis, had secured 100 percent consent from its owners before the property was put up for tender in June.

    The 35,639-sq-ft freehold site is zoned for residential use with a ten-storey height control and a plot ratio of 2.8. It can possibly house a new development with around 95 apartments averaging 1,000 sq ft each.

    The tender for Meng Garden ended on July 7, attracting six bidders, including mid- and large-sized listed developers.

    The 16 collective sales at $786 million to date marked an improvement from the solo deal last year at $100.8 million and the eight transactions in 2008 at $346 million.

    “Whereas most of the deals so far this year have involved sums below $100 million and were primarily outside the prime districts, we could see bigger sites and a few more in the prime districts coming to the market in the current half,” said Jeremy Lake, executive director for investment properties at CB Richard Ellis. Mr. Lake expects that the full-year tally could exceed the $2 billion mark.

    Karamjit Singh, managing director at Credo Real Estate, noted that the 13 collective sale deals in H1 2010 averaged $40 million per transaction, compared with the 55 transactions that averaged $170 million each during the peak of the collective sale fever in H1 2007.

    “For H2 2010, we expect to see 20-40 successful deals, which would mean a doubling from the first-half performance. We also expect the average deal size to somewhat double to $80-100 million in H2 2010,” said Mr. Singh.

    However, many market watchers are not expecting to see the peak volumes achieved in 2006 and 2007, when $7.8 billion and $11.6 billion were done, respectively.

    Some en bloc sales are no longer viable because of the high cost of replacement properties, said Mr. Lake.

    “The cost of the replacement property has moved up to an extent that the en bloc premium is no longer attractive to owners,” said Mr. Lake. “As a result, the number of viable collective sales that agents are working on has diminished.”

  2. #2
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    Another En-bloc went thru ..... lucky for those owner .... was wondering when my old apartment @ The Stradia will go for en-bloc

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    mr funny is offline Any complaints please PM me
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    Default Biggest collective sale of the year clinched

    http://www.businesstimes.com.sg/sub/...37540,00.html?

    Published July 14, 2010

    Biggest collective sale of the year clinched

    Meng Garden sells for $137m; more prime district sites may come to market

    By KALPANA RASHIWALA


    (SINGAPORE) A collective sale is said to have been sealed for Meng Garden Apartments off Killiney Road for $137 million or about $1,380 per square foot per plot ratio, including an estimated development charge of $681,000.

    This is the biggest collective sale transacted this year and the first in a prime district.

    It also takes the year-to- date tally to 16 deals at about $786 million.

    Boutique developer TG Development, the buyer of Meng Garden, will not have to seek the Strata Titles Board's approval for the transaction as CB Richard Ellis, which brokered the collective sale, had secured 100 per cent consent from the owners prior to the property being put up for tender last month.

    The 35,639 sq ft freehold site is zoned for residential use with a 2.8 plot ratio and a 10-storey height control.

    The site can potentially accommodate a new development with about 95 apartments averaging 1,000 sq ft each.

    The existing eight-storey block comprises 26 apartments and a penthouse, with over half the units owned by an extended Lim family.

    The tender for Meng Garden closed on July 7 and is understood to have attracted six bidders, including mid- and large-sized listed developers.

    Meng Garden is located on Lloyd Road and was built in the mid-1980s. Prior to its development, the site was the original residence of the Alkaff family.

    The 16 collective sales at $786 million so far this year is a marked improvement from last year's solo deal at $100.8 million and the 2008 showing of eight transactions for a total $346 million.

    'Whereas most of the deals so far this year have involved sums below $100 million and were primarily outside the prime districts, we could see bigger sites and a few more in the prime districts coming to the market in the current half,' said CB Richard Ellis executive director (investment properties) Jeremy Lake.

    He predicts that the full-year tally could cross the $2 billion mark.

    Credo Real Estate managing director Karamjit Singh noted that the 13 collective sale deals in the first half of this year averaged $40 million per transaction - a far cry from the peak of the en bloc sale fever during the first half of 2007, when there were 55 transactions averaging $170 million each.

    'For H2 2010, we expect to see 20-40 successful deals, which would mean a doubling from the first-half performance. We also expect the average deal size to somewhat double to $80-100 million in H2 2010.'

    However, most market watchers are not expecting the peak volumes seen in 2006 and 2007 - when $7.8 billion and a record $11.6 billion respectively were done (according to Credo figures) - to be re-visited anytime soon.

    CB Richard Ellis' Mr Lake argues that some collective sales are no longer viable due to the high cost of replacement properties. 'The cost of the replacement property has moved up to an extent that the en bloc premium is no longer attractive to owners,' he said.

    'As a result, the number of viable collective sales that agents are working on has diminished.'

    Mr Lake also observed that back in 2006-2007, land prices appreciated so quickly that almost every collective sale effort worked. 'However, prime district residential land prices currently are not back to their previous peaks, which mirrors the price trend for new residential units.'

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    mr funny is offline Any complaints please PM me
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    http://www.todayonline.com/Business/...-rush-pays-off

    En bloc sales rush pays off

    New rules come into effect today

    by Julie Quek

    05:55 AM Jul 15, 2010


    SINGAPORE - The rush to complete the process of a couple of en bloc sales this month have probably paid off for the owners. This is because if there had been any delay, their properties would be subject to new en bloc rules which will come into effect today.

    Two recent en bloc sales sealed this month are the People's Mansion at Lorong 31 Geylang sold for $42.68 million, and Meng Garden Apartments at Killiney Road for $137 million.

    Changes to the Land Strata Titles Act will kick in today, after the Amendment Act was enacted in Parliament on May 18.

    A spokesperson from the Ministry of Law said the new legislation will have no impact on en bloc deals which have been completed on July 14 or earlier.

    The objective of the amendment is to discourage numerous attempts at en bloc sales when there is insufficient interest from the owners.

    Among them, a two-year restriction period will be imposed starting from the date an initial collective sale attempt failed.

    The first re-try to convene an Extraordinary General Meeting to reappoint a sale committee will need the backing of at least 50 per cent share value or total number of owners.

    For second or subsequent re-tries during the two-year period, 80 per cent will be needed.

    Currently, the requisition threshold is set at 20 percent by share value or 25 percent of the total number of owners.

    Analysts told MediaCorp that overall, this is good news as the amendments will provide more clarity to the en bloc sales process and balance the interest of property owners.

    Mr Colin Tan, head of research and consultancy at Chesterton Suntec International said: "If the majority of owners have a real interest to go for en bloc, these new rules don't matter.

    "This will only affect ongoing en bloc projects that have many undecided or opposing owners.

    "The new ruling will protect these owners from being harassed into selling their property for en bloc."

    Property watchers reckon that with these rules, fewer en bloc will go through in future, because now it will be harder for aggressive property owners to keep trying their luck for an en bloc - especially when majority of owners are not willing to sell their property.

    Mr Karamjit Singh, managing director at Credo Real Estate, said: "The two-year restriction will raise the hurdle for owners to get started once again."

    Another amendment is that the Strata Titles Board will be empowered to issue a "stop order" to cease mediation once it becomes clear that the affected owners want adjudication to be done in court.

    Currently, the Strata Titles Board mediates and adjudicates on objections filed by minority owners in en bloc sales.

    The change could help to reduce the costs and time taken to resolve more contentious en bloc applications.

    Some of the changes will apply to the en bloc sale committees.

    Among them is the requirement for those standing for election to the sale committee to declare the extent of ownership that they or their immediate family have in the development.

    To ensure that the sales process is not dragged out, the sale committee will have one year to obtain the first signature for the Collective Sale Agreement, or it will be automatically dissolved.

    The one-year time frame will start from the date the sale committee is formed.

    These changes will apply to en bloc applications made on or after the date of commencement of the Land Titles (Strata) (Amendment) Act.

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