Category Archives: Collective Sales / Enbloc

Katong Shopping Centre put up for collective sale for a third time

Katong Shopping Centre has been put up for collective sale for the third time.

The reserve price is set at S$630 million. This translates to a land price of S$2,248 per square foot per plot ratio.

The mall, which contains 425 units, sits on a freehold plot of nearly 87,000 square feet. Situated along Mountbatten Road, it houses among others, offices, employment agencies, printing and tailoring services shops, and eateries.

According to marketing agent Cushman & Wakefield, owners controlling at least 80 per cent of the share value and total area have agreed to the proposed sale.

The mall launched its first attempt at an en bloc sale in January 2010 for S$445 million. The deal fell through, and a second attempt was launched in June 2014.

Katong Shopping Centre was Singapore’s first air-conditioned mall when it opened its doors in 1973.

Source : Channel NewsAsia – 15 Jun 2016

Jalan Besar Plaza up for sale again, this time for S$380m

Jalan Besar Plaza will be put up for sale again after a bid to sell the building last November failed, real estate group Huttons said on Monday (Jun 6).

The 36-year-old building will be launched for public tender on Tuesday at a minimum price of S$380 million, or S$2,115 per square foot per plot ratio. The sale in November had priced the building at S$390 million but did not receive any bids.

The 16-storey building has a three-storey commercial podium, 44 residential apartments and 111 commercial units. It is on a freehold site of 4,927.8 metres.

The tender in November had a development charge of S$7.63 million, which has been scrapped this time round. That tender also listed the building’s gross floor area available for redevelopment at 14,783.4 square metres, based on a plot ratio of 3.

The building’s owners have since sought approval from the Urban Redevelopment Authority (URA) that the overall gross floor area of 16,694.23sqm can be redeveloped.

Any redevelopment will have to comply with the 2014 Master Plan, which zoned the site under commercial and residential use.

URA is also prepared to consider the site being redeveloped for serviced apartments, Huttons said. However, the number of units and layout would be subject to evaluation and compliance with the requirements of relevant authorities.

The closing date for the tender is Jul 14 at 3pm.

Source : Channel NewsAsia – 6 Jun 2016

Harbour View Gardens up for collective sale

Owners at Harbour View Gardens in Pasir Panjang are hoping to make it second time lucky, after launching the project for collective sale at about $34 million yesterday.

About three years ago, the proposed sale of the site to Roxy-Pacific Holdings for $33 million was blocked by the High Court, and the decision was upheld by the Court of Appeal.

The basis for the rejection was that the public tender was launched even before the requisite 80 per cent of owners had agreed.

There was also “unacceptable inequality of treatment of dissenting proprietors”, as a $200,000 inducement had been offered by the collective sales committee and marketing agent Colliers International to one dissenting owner but not to others.

This time, the owners of 13 of 14 units in the project, which consists of three-storey walk-up flats, have given their consent. That is about 92 per cent based on share value and 89 per cent based on total area.

The 2,856 sq m site is freehold and has a plot ratio of 1.4. As the existing project has already maximised the permitted gross floor area, no development charges would apply, marketing agents William Gan and Joey Sia of William Gan Realty told The Straits Times yesterday.

Potential buyers could build a project of about 57 units at an average of 70 sq m each, up to five storeys in height. If they apply to the Land Transport Authority to purchase a public carpark in front of the property, the combined area could support a project of about 7 1 units.

The reserve price works out to about $788 per sq ft (psf) per plot ratio. A development could fetch about $1,600 psf, noted Mr Gan.

Owners can expect to get returns ranging from $1.48 million for the smallest 94 sq m two-bedroom apartments to $3.29 million for the largest 252 sq m four-bedroom apartments. That is well above market values of $1.1 million to $1.2 million for smaller units and over $1.8 million for larger ones.

The project was built in 1986 and many are the first owners of the units there. The site is about 500m from Haw Par Villa MRT station, while Pasir Panjang Food Centre and Alexandra Retail Centre are nearby. New mixed-used project Icon@Pasir Panjang is just across the road.

Four or five potential buyers have already expressed interest in the property since Mr Gan started sussing out demand last October.

“It’s good for us to hear recent news of the Shunfu Ville deal, and we have also been encouraged by the interest so far,” said Mr Gan.

The tender closes on July 7.

Property firm fined, barred for breaching en bloc rules

In an unprecedented move, the Council for Estate Agencies (CEA) has fined a property agency and barred it from undertaking any enbloc sale work for one year starting April 20, after it was found to have breached its duty as adviser and brought about a conflict of interest by offering incentive payments to several homeowners of Thomson View Condominium in exchange for their backing the development’s collective sale.

HSR International Realtors, was ordered to pay a penalty of S$74,000, CEA said in a statement on Tuesday (May 17). The move came after the High Court voided the collective sale in 2013 as it deemed HSR’s actions to offer four homeowners sweeteners amounting to S$548,000 inappropriate.

This is the first time since CEA’s inception close to six years ago that a disciplinary action has been taken against an agency instead of individual agents, which industry players read as the council’s tough stance against improper conduct. The CEA was formed in October 2010 as a statutory board under the Ministry of National Development to license property agencies and individual agents, as well as regulate industry practices.

The collective sale of Thomson View Condominium was brought to the High Court in 2013 after minority homeowners objected to the deal even though the third tender attempt received a bid of S$590 million from Wee Hur-Lucrum, or about S$10 million above the indicative price.

The High Court found that HSR, the marketing agent of the deal, had offered incentives, including additional payments and the reimbursement of a business class return air ticket from Europe to Singapore, to the four homeowners in return for their signatures on the Collective Sale Agreement.

“The Court ruled that the Collective Sale Committee had not acted in bad faith. However, the Court found that HSR had breached its duty as an advisor to the Collective Sale Committee by offering the incentive payments. In particular, these incentive payments brought about a conflict of interest on the part of HSR, which led to the agency placing its own interest (to collect the commission) and the interests of the four subsidiary proprietors over the interests of the minority subsidiary proprietors,” the CEA said.

“The Court also ruled that HSR had breached its duty of transparency by not disclosing the incentive payments to the Collective Sale Committee or the subsidiary proprietors,” said the council, whose disciplinary committee then took action against HSR.

Other collective sales have also been dismissed by the High Court as a result of undisclosed incentive payments, such as the one involving Harbour View Gardens in 2013. The court said the collective sale committee had failed to act in good faith while the agent’s conduct was commercially unacceptable. The CEA noted, however, that in the Harbour View Gardens case, “the collective sale committee’s lawyer had advised the agency that the incentive payment was in order”.

TODAY’s attempts to reach HSR’s management for comments were not successful. But industry players told TODAY that the hefty fine and ban imposed by CEA reflected the severity of such behaviour and highlighted the need for agencies to better police their agents’ actions. Mr Ku Swee Yong, chief executive of Century 21, said the CEA announcement brought home the message that agencies can be held liable for their agents’ misbehaviour even though the latter are not employees.

“We cannot say that since these are associates not on full-time salaries, therefore we are cleared of any trouble. If they misrepresent the agency, in theory we should also be held partially liable because it’s part of our training and our internal service standards,” he said.

Mr Eugene Lim, key executive officer of ERA Realty Network, said the extent of breaches in the Thomson View Condominium collective sale case may have played a part in CEA’s decision to take action against the entire agency.

“It’s a huge case, unlike previous small cases when only individual agents were taken to task… I think education and training are important safeguards,” he said.

Source : Today – 18 May 2016

Shunfu Ville sold for S$638m, below S$688m reserve price

Shunfu Ville has been sold for S$638 million to developer Qingjian Realty. It is one of the largest collective sale deals since Farrer Court in 2007.

The deal was struck after 80 per cent of the owners agreed to accept the offer, despite it being lower than the reserve price of at least S$688 million.

With the sale, owners of the 358-unit development will receive an average of S$1.78 million for their homes, which works out to S$747 per square foot per plot ratio.

This is the second time Shunfu Ville has been put up for collective sale. In September last year, the tender closed without finding a buyer.

Source : Channel NewsAsia – 20 May 2016

Thong Sia Building along Orchard Road sold for S$380 million

Thong Sia Building located opposite The Paragon in the Orchard Road shopping belt has been sold to SIN Capital Group for S$380 million, marketing agent JLL said in a news release on Wednesday (Jul 29).

This works out to S$2,430 psf over the existing gross floor area for the freehold building. The 26-storey building was built in 1981 and has a land area of about 21,602 sq ft. It currently comprises seven levels of commercial space and a 19-level residential tower of 37 apartments.

JLL’s International Director Karamjit Singh, who brokered the deal, said “the planning authority has advised that they are prepared to support the redevelopment of the site into a mixed residential and commercial development with at least 60 per cent of the space set aside for residential or serviced apartments”.

He added that this is the first collective sale this year and the largest ever mixed use collective sale in Singapore. The completion of the sale is subject to the approval by the Strata Titles Board.

Source : Channel NewsAsia – 29 Jul 2015

Da Vinci building in Upper Bukit Timah sold for S$58m

Sim Lian Holdings Pte Ltd has bought the Da Vinci building at 191 Upper Bukit Timah Road for S$58 million.

The seller, a unit of high-end furniture retailer Da Vinci Holdings Pte Ltd, will be vacating the property, which it has been using as its showroom.

When contacted by The Business Times, Ken Kuik, managing director of Sim Lian Holdings, said: “For now, this will be an investment property. We’re going to lease out the building after the seller moves out.”

Sim Lian Holdings, a privately owned vehicle of the Kuik family, holds a majority stake in mainboard-listed Sim Lian Group.

The sale of Da Vinci building was brokered by ERA Legends Division, a member of Prime Group.

The Da Vinci building is right next to Sim Lian Holdings’ headquarters building. Both properties are on freehold sites and have fully tapped the 1.4 plot ratio allowed for the sites, which are zoned for commercial use under Urban Redevelopment Authority’s Master Plan 2014.

“In the long term we could amalgamate the two sites and redevelop the combined land,” reckons Mr Kuik.

Da Vinci building has a land area of 21,415 sq ft and gross floor area (GFA) of nearly 30,000 sq ft.

The building has four storeys, an attic and a basement (housing 12 car park lots)

Sim Lian’s HQ building next door has GFA of about 52,000 sq ft. The company and its listed vehicle occupy the upper levels of the four-storey building. The ground floor is leased to furniture, electronics and IT retailer Courts.

Da Vinci is understood to have signed a lease for about 9,000 sq ft of retail space at Thong Sia Building at Bideford Road, off Orchard Road.

Source: Business Times – 10 October 2014

Indonesian tycoon Tahir picks up 12 Grange Infinite units

Indonesian tycoon and philanthropist Tahir is understood to be the buyer in the recent bulk transaction of 12 units at the completed, freehold Grange Infinite project. The transaction is said to have amounted to S$70-plus million.

The deal comprises 11 four-bedroom apartments ranging from around 2,560 sq ft to 2,700 sq ft each and a “junior penthouse” of 6,039 sq ft on the 20th level of the 36-storey freehold project.

The acquisition by Mr Tahir is said to price the apartments in the region of S$2,050 per square foot on average and the penthouse at around S$1,950 psf.

The 12 units were sold vacant.

Grange Infinite, a 36-storey condo development completed in 2011, is next to the Indian High Commission on Grange Road.

Market watchers suggest more bulk transactions of luxury condo units in Singapore could materialise as sellers are now generally more willing to lower their price expectations and negotiate.

In some instances, sellers could be fund management outfits wishing to exit for a variety of reasons – including the end of the fund life, or a decision to divest their holdings in the Singapore residential market and switch to other investments, noted a seasoned property consultant.

“On the other hand, developers of high-end residential projects would be more inclined to hold on to their prices for as long as they can,” he added.

The seller of the 12 Grange Infinite units is the Asia Dragon Fund (ADF), managed by ARA.

Talk in the market is that the transaction is being effected through the sale of shares in two overseas incorporated companies: one holding the 11 apartments and the other, the junior penthouse.

Following the bulk sale of the 12 units, ADF is left with just one unit in Grange Infinite – a “super” penthouse on the 36th level spanning across 9,462 sq ft which ADF again holds through a separate corporate vehicle. A potential buyer may hence choose to again make an acquisition through the sale of shares in the company. The official asking price for the unit is said to be S$26 million, reflecting $2,748 psf, although market watchers expect the deal to be near the $2,000-2,100 psf level. Among other things, the unit comes with a pool and has spectacular views in addition to five bedrooms.

The 13 units are out of an original 53 that ADF had acquired back in 2008 in the 68-unit project from its developers, Chip Eng Seng and Citadel. ADF’s purchase price of S$388 million worked out to an average price of S$2,600 psf.

ARA later released the units for sale to individual buyers, offloading 40 units at below S$3,000 psf on average, according to a recent BT report.

Mr Tahir has scaled up his real estate holdings in Singapore over the past few years. His property portfolio includes office buildings such as 135 Cecil Street and ABI Plaza (formerly known as RCL Centre) along Keppel Road in addition to investments in residential units in developments such as One Shenton, St Regis Residences and Four Seasons Park.

Mr Tahir is the founder and chairman of the Mayapada Group, an Indonesia-based conglomerate with interests in the banking, retail, property and healthcare businesses. He has a stake in Singapore-listed MYP Ltd.

Born to working-class parents in Surabaya, Mr Tahir came to Singapore for his education, earning a business degree from the then-Nanyang University.

Along with investing in Singapore’s property market, he is also known to be involved in numerous philanthropic deeds. One of the latest is setting up scholarships at Singapore Management University. He has also given a total of S$33 million to the National University of Singapore and set up a million-dollar trust fund in June with the Singapore Table Tennis Association.

Mr Tahir is a son-in-law of Indonesian magnate Mochtar Riady.

Source: Business Times – 4 September 2014