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Singapore
In 2009, the collective sales offer of Horizon Towers, in the amount of $ 500 million, collapsed as a result of. a rancorous conflict between the owners and the conclusion of the Court of Appeal that the sales process was poorly managed. The development of 211 units in Main District 9 is back on the market – this time, asking for more than twice that price.
This could well be the first billion dollar transaction in the current cycle being sold, and the largest high-rise residential redevelopment project in the Orchard Road area in at least two decades.
A public tender call was launched on Wednesday for the development of Leonie Hill by the JLL marketer, with a reserve price of $ 1.1 billion. A consensus of more than 80% has been reached between the owners.
The owners of the 200 apartments could receive between 4.7 and 5.2 million Singaporean dollars each; the owners of the 11 penthouses could each receive between $ 9.2 million and $ 10 million Singapore
These figures are significantly higher than the estimated gains that they would have pocketed during the previous attempt to sell it. 10 years ago. At the time, unit owners received $ 2.3 million and penthouses owners between $ 4 and $ 6.28 million.
A few other projects are also aimed at obtaining Singapore's largest collective sale in terms of quantum dollars. These include Pine Grove, a former HUDC estate off Ulu Pandan Road, where homeowners are asking for at least $ 1.65 billion Singapore. The estate is just 4 percent of the approval rate required to initiate a call for bids.
Also in the process of obtaining the signatures of the owners is the former HUDC domain Braddell View, which is supposed to ask 2.08 billion Singaporean dollars. like Mandarin Gardens in Siglap, whose asking price is $ 2.48 billion; The owners of the Kensington Park condominium at Serangoon Gardens rise to C $ 1.05 billion
The largest collective sale since 2016 was recorded for Pacific Mansion, which was acquired for $ 980 million by GuocoLand, Intrepid Investments and Hong Realty
Terence Lian, head of investment sales at Huttons Asia, which markets Pine Grove, said that when the first collective sale of a billion dollars will be closed, other mega-sites waiting will feel the pressure.
I do not think there is as much appetite for $ 1 billion transactions, so the location and timing of the launch will play a role, "he said. Savills Singapore's chief executive, Alan Cheong, to most developers who have already obtained the necessary approvals. acquired sites are now reluctant to engage in collective sales for which the completion date can be long, exposing them to greater market risks.
And there is also the fear of not being able to conclude h) sell the project within five years, in which case the additional stamp duty of the buyer on the cost of the land will apply .
These are just two factors that block large transactions
. Mr. Cheong added, "If the freehold condominiums go to more than $ 4,000 from Singapore, then this project will resonate with the buyers, and the developer who buys it will have to make a judgment about where they are going. find the market when it starts to sell. "
This year City Developments Ltd's New Futura Freehold project achieved a median price of $ 3,365 psf for the units.
Market observers therefore believe that the estimated rate of land for Horizon towers is attractive. With an estimated rental supplement premium of approximately 220 million Singapore dollars for the 99-year lease, the Land rates rise to $ 1,964 per square foot from the parcel (psp ppr), or £ 1,786 per ppr, including the 10 percent space on the balconies.
No development charges or differential premiums are due for the intensive use of the 1.9 hectare site. The consultants estimate that the balance price for the Horizon Towers site is between 2,700 and 2,800 Argentine pesos, and that the average sales price of the new project is S $ 3,000 to S $ 3,200. About 560 units can be built Tan Hong Boon, Regional Capital Markets Manager at JLL, which markets Horizon Towers, said, "The property has all the ingredients necessary for branded residences with unparalleled service,"
noted that its land ratio compares favorably with the recent 99-year-old land sales pitch at Cuscaden Road, sold for $ 2,377 pf ppr, and Freehold Park House's collective sales at a record-price of $ 2,910 psf ppr, Pacific Mansions at River Valley Close at $ 1,987 psf ppr, and Cairnhill Mansions at $ 2,311 psf ppr.
Other consultants agree that the price of land for Horizon Towers seems reasonable for its prime location, but stated that the large amount will limit bidders to larger boys and consortia. Horizon Towers is 150 m from the future Great World MRT Station and 600 m from the Orchard MRT Station. Mr. Tan from JLL noted that since the epic legal controversy surrounding Horizon Towers 10 years ago, the Court has made changes to the Land Titles Act (Strata) to improve clarity, transparency and transparency. procedural responsibility. "Since the changes to the laws, the collective selling committees are now more diligent about observing the procedures and processes required to avoid the pitfalls," he said.
In recent weeks, the Strata Titles Board (STB) back the owner 's objections for two block sale attempts – one at Goodluck Garden and the other, Cairnhill Mansions. The orders put an end to STB's mediation and granted the two collective sales committees two weeks to ask the High Court to approve the sale.
Earlier, the sale of Shunfu City to Qingjian Realty was also brought to the High Court. In this case, however, the appeal of the objectors was rejected. The sale was approved last year.
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