Privatised HUDC estate Florence Regency in Hougang could be next collective sale

SINGAPORE – En bloc fever is getting even hotter with privatised HUDC estate Florence Regency in Hougang likely to be put up for collective sale soon.

The approval level from owners at the 336-unit project is nearing the requisite 80 per cent mark.

The Straits Times understands that three other former HUDC developments – Laguna Park, Pine Grove and Ivory Heights – have also started the collective sale process.

Six residential projects, including three privatised HUDC estates – Rio Casa, Eunosville and Serangoon Ville – have been sold en bloc since May in a resurgent market.

Florence Regency in Hougang Avenue 2 will likely hit the market in the coming months, although marketing agent JLL had declined to reveal the owners’ asking price.

“The owners started signing the collective sale agreement on July 15… we are now over 75 per cent signed,” said JLL regional director for capital markets Tan Hong Boon.

The consent of at least 80 per cent of owners must be obtained before an en bloc sale tender can be called.

Florence Regency has a land area of 389,236 sq ft, with a remaining lease term of 71 years. The estate was privatised in 2014, and this is its first shot at selling en bloc.

Property agents say several privatised HUDC estates – built under the Housing and Urban Development Company scheme in the 1970s and 1980s – are jumping on the en bloc bandwagon given the rising optimism in the property market and developers’ hunger for sites.

A tender for the sprawling 560-unit Tampines Court in Tampines Street 11 , closing in two weeks, will offer the latest indication of the market for collective sale of former HUDC estates.

Owners at Tampines Court had asked for $960 million for the property, which would be the biggest collective sale of such estate in a decade if the deal goes through.

Three other developments have elected their collective sale committee: 660-unit Pine Grove near Ulu Pandan Road, 654-unit Ivory Heights in Jurong East Street 13 and 516-unit Laguna Park in Marine Parade Road.

The Straits Times understands that owners at 136-unit Chancery Court in Dunearn Road will be holding an extra ordinary general meeting later this month to appoint a sales committtee to start the en bloc proceedings.

The six residential projects that have been collectively sold this year were valued at nearly $2.1 billion, doubled the $1 billion from three deals in the whole of 2016.