Enbloc News: Olina Lodge back in the market again

The freehold Olina Lodge will be up for tender once again, at an indicative price of $220 million or $1,544psf ppr, slightly lower than its previous asking price of $225 million or $1,666psf ppr.

The District 10 residential site, located a short distance away from Holland Village and popular schools such as Nanyang Primary School and ACS International, has a land area of 84,288sqft and a plot ratio of 1.6, translating to a maximum gross floor area of 134,862sqft.

According to sole marketing agent DTZ, no development charge is payable if the freehold site is redeveloped within its maximum plot ratio. Shaun Poh, DTZ head of investment advisory services and auction, noted that the investment quantum of the hilltop site is more likely to appeal to developers that are seeking “mid-sized residential development sites” in a popular residential district. Assuming the indicative price is met, owners stand to receive around $3 million to $ 4 million per unit.

The tender for Olina Lodge closes on Dec 13 and the freehold property can be built up to a maximum height of 12 storeys under Master Plan 2008. Olina Lodge is a four-storey walk-up residential development comprising 67 apartments and is about 20 years old.

Source: The Business Times

The wife and I did a quick check of our previous postings and found that Olina Lodge first put their development up for collective sale back in June 2011. We understand the tender ended with no bid – and that was before the whole EU debacle started to unfold.

So we reckon a $5 million dollar reduction in asking price now is not going to cut it. But we shall see…


Click below to read our previous posting on the Olina Lodge en-bloc:
http://sgproptalk.blogspot.com/2011/06/enbloc-news-olina-lodge.html
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Enbloc News: Dragon Mansion sold for $130 million

A developer has been awarded the Dragon Mansion site at a knock-down price, making it one of the few collective sale bids to have found a buyer this year.

A joint venture between Lian Beng Group and Centurion Properties offered $130 million for the Spottiswoode Park Road site, lower than the indicative price of between $132 million and $142 million.

In May, Dragon Mansion was asking even more: between $150 million and $156 million.

The $130 million price translates to a land cost of $1,093psf ppr, including a 10% bonus gross floor area for balconies. No development charge is payable.

The sale of the property will leave owners of the building’s 68 units (about 1,324sqft each) richer by $1.91 million each. This is according to Jones Lang La-Salle, which brokered Dragon Mansion’s collective sale.

Dragon Mansion is a freehold 18-storey development zoned for residential use. The 38,618sqft site at 14 Spottiswoode Park Road has a plot ratio (ratio of maximum gross floor area to land area) of 2.8, which will allow the future development to be built up to 36 storeys.

Dragon Mansion was sold through a tender exercise which closed on Wednesday. The tender drew a handful of bids, said JLL national director and head of investments Stella Hoh.

The sale is subject to approval from Strata Titles Board.

This is the second block of Dragon Mansion to be sold. The first block next door was sold earlier to Roxy-Pacific Holdings in December 2009 for $863psf ppr. Roxy is now developing the site into Spottiswoode 18.

UOL Group paid $732psf ppr and $740psf ppr for the nearby Spottiswoode Apartment and Oakswoode Heights sites respectively in 2007 – which it is developing into Spottiswoode Residences condo.

The biggest collective sale so far this year was the sale of the mixed-use Hong Leong Garden Shopping Centre.

The development in the West Coast neighbourhood was bought by an Oxley Holdings-led consortium for $171 million in September.

Source: The Straits Times/The Business Times

As per always, it is good news that travel (in this case, being released) fast. If only marketing agents handling collective sales are as forthcoming on the status of, say, Pine Grove…


Have a good weekend everyone!
 
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Enbloc News #2: Chateau Eliza

Chateau Eliza, a prime freehold residential development along Mount Elizabeth off Orchard Road, has been put up for collective sale.

Its marketing agent Knight Frank said the17,997 square-foot property has a price guide of $111 million to $115 million.

It added that translates to a land price of $2,099 per square foot per plot ratio (psf ppr) to $2,174psf ppr based on the proposed gross floor area of 52,887sqft.

There is no development charge to be paid. And with an additional 10 per cent balcony area, the land price could be lowered to $2,009psf ppr to $2,077psf ppr, based on the potential GFA of about 58,176sqft, the marketing agent said.

Knight Frank estimates the breakeven cost at around $2,700 per square feet (psf) to $2,800psf.

Chateau Eliza is zoned for residential use with a plot ratio of 2.8.

It can be developed into serviced apartments subject to regulatory approval.

The site currently has 37 residential apartments with unit sizes ranging from 828.8sqft to 3,336.8sqft.
The tender will close at 3pm on December 15.

Source: Channel News Asia

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Enbloc News #1: Thomson View

Thomson View Condominium has been put up for sale with an indicative asking price of between $595 million and $635 million, said its marketing agent HSR Investment Sales.

That translates to about $694 to $732 per square foot of potential gross floor area for the residential site located along Upper Thomson Road in District 20.

This includes an upgrading premium of about $130 million to top up the 99-year lease and a differential premium of about $158 million, said HSR.

The 540,314 square-foot site has a possible net saleable gross floor area of 1.272 million square feet.

Thomson View Condominium has been zoned for residential use with a gross plot ratio of 2.1 with a maximum height of up to 24 storeys.

HSR said a future development can yield about 1,012 units of apartments averaging 1,100sqft per unit and 33 strata landed houses averaging 2,500sqft.

A brand new development is expected to fetch a minimum of $1,350 per square foot (psf) to $1,600 psf.
HSR said higher up Upper Thomson Road, units under construction at Thomson Grand are changing hands at average prices of $1,350psf onwards and one unit had achieved a sale price of up to $1,501psf.

Currently, Thomson View consists of 200 residential apartments, 54 townhouses and a shop lot.

The site is open for public tender until 3pm on 12 January, 2012.

Source: Channel News Asia

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Enbloc News: No takers for Pacific Mansion & Pearl Bank Apartments

The close of the tender for Pacific Mansion yesterday marked yet another collective sale ending with no firm offers in sight.

The Straits Times understands that the owners of Pacific Mansion’s 288 residential units and two commercial units will now be discussing options with interested parties.

The River Valley Close development was put up for sale last month with an indicative price for $990 million, or $2,008psf ppr – the second attempt at a collective sale.

In 2007, the owners had asked for $1.18 billion, or about $2,400psf ppr, in a high-profile collective sale that failed to attract bids matching the asking price from developers.

Pearl Bank Apartments in Outram, whose tender closed on Nov 3, has also found no takers.

The owners were asking for $725 million or $1,445psf ppr – lower than then $750 million it had asked for previously.

It is the fourth time the 99-year leasehold development has been put up for sale. Sources say it is not clear if the owners will be keen to take another stab at a collective sale.

Several developments put up for collective sale recently have reduced their initial asking prices.

Dunearn Gardens in Newton is now going for bids between $550 million and $561 million, a dip from its 2007 guide price of $578.5 million.

Mega collective-sale site Laguna Park in the east also lowered its reserve price from $1.33 billion set in May to $1.25 million.

Several other big collective-sale sites, such as Pine Grove, Tulip Garden and Hawaii Tower, have also failed to find buyers.

Such “mega sites” carry hefty price tags that sometimes surpass the billion-dollar mark, and often span a huge land area – two factors analysts say exclude all but a limited number of deep-pocketed developers.

“Forking out such a huge amount often means that developers will have to make sure they have enough cash, but they also have to find a bank that’s willing to help them finance that huge sum,” said Ku Swee Yong, chief executive of International Property Advisor.

He added that it is a big risk not many property players are willing to take, given the jittery economic climate.

“Development charges and sums to top up the lease have to be factored in as well. All these arrangements have to be made and there is a chance the Strata Titles Boards might not approve the sale in the end.”

The readily available supply of Government Land Sale (GLS) sites has also taken the shine off collective-sale properties.

Compared with such properties, buying a GLS site is a less complicated process, said Mr Alan Cheong, Savills’ research and consultancy associate director.

“Bidding for a GLS site means you compete with other developers, but with collective sales, you’re up against other developers and the owners of the property.”

Owners often cite the freehold status or prime location as desirable attributes of their properties.

But analysts point out that demand for properties in central locations such as District 9, 10 and 11 is weaker now, with most of the price growth in the current market led by mass-market segment, making collective sale projects in prime areas an even less attractive investment.

However, market experts said the smaller sites could still see interest, possibly from niche players and those new to the property development sector.

Source: The Straits Times

So two more (collective sales) bite the dust… again. Some may say that hindsight is always 20/20, but if you have followed our previous posts on the recent collective sales, you will appreciate why the wife and I are not a tad surprise by the outcomes of Pacific Mansion and Pearl Bank Apartments.


Given the current poor economic climate, one wonders why owners of developments that are asking for $200 million or more are still pushing their estates out for collective sales. The developers are certainly no fools, and unless one is a sucker for punishment, such en bloc attempts at this juncture are just setting themselves up for failure and disappointment.


Then again, the wife and I are no experts while these collective sales are managed by professional property marketers. So they should know better…

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Enbloc News: Vista Park – Take 3!

A prime leasehold site next to Kent Ridge Park is up for sale by tender with a reserve price of $323 million.

The site, Vista Park at 50-66 South Buona Vista Road, has a potential gross floor area (GFA) of approximately 446,947 square feet.

Based on the reserve price, the land price works out to be about $824psf ppr, inclusive of a lease top-up of approximately $45.3 million.

The break even cost is expected to be $1,250 psf.

Vista Park is approximately 319,248sqft in size and currently comprises 209 residential apartments and townhouses.

Knight Frank, the sole marketing agent, will close the tender on 7 December.

Source: Channel News Asia

Some may recall that Vista Park was last put on the market in May 2011 for $338 million. So it looks like the owners have decided to reduce their reserve price by abit. Here’s hoping that it will be third time lucky for them… 

Click below to see our previous post on Vista Park en bloc:
http://sgproptalk.blogspot.com/2011/05/more-enbloc-news-vista-park.html
 
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Enbloc Update: Park West Condominium

The wife and I understand that the tender dateline for Park West has came and gone, with NO bidder for the development.

The sales committee is currently contemplating if they should lower the asking price.

We will provide more update once/if we get it so stay tuned…

Click below to view our previous post on the Park West en bloc:
http://sgproptalk.blogspot.com/2011/09/enbloc-news-2-park-west.html

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Enbloc News: Green Lodge (for the 2nd time)

Green Lodge, a freehold development located on Toh Tuck Road, has been put up for collective sale.

The Green Lodge site is being marketed by DTZ. The property firm said in a press statement yesterday that the asking price is above $195 million, or about $866psf ppr. The sale is being conducted through a tender exercise which will close on Dec 8 at 3pm.

The freehold property sits on a land area of about 151,075sqft. According to the 2008 Master Plan, the site can be redeveloped into a five-storey condominium project at a gross plot ratio of 1.4. Green Lodge currently has an approved density of equivalent plot ratio 1.4896, which means no development charge is payable.

DTZ said in its press statement yesterday that, assuming an average apartment size of 1,000sqft and a building efficiency of 90%, the site can accommodate about 210 residential units.

Green Lodge is located in a predominantly low-rise residential area surrounded by established landed housing estates including Toh Tuck Garden and Eng Kong Park. Pei Hua Presbyterian Primary School is within 1-km of the site.

Source: The Business Times

The wife and I did a quick check on our previous postings and found that Green Lodge was last put up for collective sale in December 2009. Several bids were received during the tender but they failed to meet the reserve price. The owners were looking for $135 million and adding a state charge of about $9.5 million, the price would come up to be $683psf ppr.

Click below to read our previous post on the Green Lodge en bloc:
http://sgproptalk.blogspot.com/2009/12/another-one-on-en-bloc-wagon-green_8820.html

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Enbloc News: Laguna Park (again) and Henry Park Apartments

Laguna Park at Marine Parade Road is up for collective sale with a reserve price of $1.25 billion.

Together with Henry Park Apartments, which is also up for collective sale at between $170 million and $180 million, the total value of properties that have come up for sale in October has hit close to $5 billion.

With over 10 sites now available for sale, developers appear to be spoilt for choice.

Nicholas Wong, Executive Director (Investment) at Knight Frank, said that developers are looking at collective sales with some caution now and added that any sale will depend on the attributes of the site and the developer’s risk appetite as well as market sentiment.

He also noted that the Government Land Sales Programme is offering developers many alternative sites.

Knight Frank is marketing the 677,493sqft Laguna Park site and it believes the proximity to the seafront would a key selling point for any new development. Based on the reserve price, the land price comes to about $954psf ppr.

Laguna Park was put up for sale earlier this year with a reserve price of $1.33 billion. But the tender closed without a successful bid.

While the downward revision of the reserve price suggests that sellers might be more motivated to sell now, Mr Wong said that new requirements for en bloc sales allow a development to be put up for sale for one year only after receiving 80% approval from homeowners. When this lapses, sellers have to seek a new mandate. So some sellers choose to relaunch the site for sale within the year instead, added Mr Wong.

Tan Hong Boon, Deputy Director, Credo Real Estate, pointed out that no collective sale has been transacted at over $200 million yet. “Generally, the key will be the land price and quantum,” he said.

Credo is marketing the 99,000sqft Henry Park site. Based on its asking price, the land price works out to be $1,216 – $1,287psf ppr.

Still, Mr Tan does not believe that the slew of collective sale sites will mean land prices will fall. “Some sellers may have lowered their asking prices but their reserve price has stayed the same,” he added.

Mr Wong is still positive on the Singapore property market too. “Barring the worsening in the global economic situation, the property market here should remain stable,” he said.

The tender for Laguna Park will close on December 6, while the tender for Henry Park closes on December 1.

Source: Channel News Asia

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En bloc wave = property market rebounding?

Singapore is suddenly awash with properties up for en bloc sale.

With almost 10 estates going to market this month, analysts said this will probably be the last wave for the year.

A last splurge for developers for 2011, and possibly the last before the market cools – that’s what some owners of en bloc properties are hoping for.

Estates such as Crystal Tower in Bukit Timah and Faber Garden in upper Thomson are among nine properties put up for collective sale in October.

But, far from a resurgence, experts have dismissed any notion that the sudden rash of sales indicates a rebound in the market.

Karamjit Singh, CEO of Credo Real Estate said: “Well it’s certainly not a resurgence of overall activity… It’s probably a coincidence that we’ve had several en blocs launching or relaunching their tenders.”

In fact, higher stamp duty on sales has reduced the profit potential for some investors.

The rush has more to do with developers and owners jumping on the bandwagon during the price boom some six to nine months ago.

Ku Swee Yong, CEO of International Property Advisors said: “The recent new launches have not just achieved new high prices but also sold well at a very fast pace, so this has caused the developers to replenish their land bank… (and) frankly for freehold land, you can only replenish them through the en bloc market.”

Growth in the en bloc property market is slowing down. But experts say small and medium sized players will have their fair share of buyers. And unless the bigger properties find their unique selling point and maintain realistic expectations, chances of a successful sale will be pretty low.

Global economic uncertainty has played a big role in clouding the outlook, with credit from banks harder to come by for the residential market.

En bloc sales in the third quarter almost halved from the previous three months to S$580 million, with larger properties valued at over S$300 million meeting repeated failures.

The new crop of en bloc projects may not find buyers for another year, and with so many up for grabs, developers’ money may be thinly divided.

Source: Channel News Asia

So there you have it. The wife and I wonder how many of the “almost 10” estates will actually be sold before the end of the year. We reckon it won’t be more than 4….

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