OWNERS of condominium project Park West are hoping that third time’s the charm in their collective sale attempt, this time at an expected selling price of S$750 million.
They saw a strong start on Saturday when signatures from around 30 per cent of owners by share value and strata area were collected on their first meeting to approve the collective sales agreement. Huttons Asia was also appointed as their marketing agent.
The asking price for Park West is lower than the indicative price of S$803 million during its 2011 en bloc tender, which received no bids. An earlier 2007 attempt did not achieve the requisite 80 per cent consensus among owners.
Frankie Lim, chairman of the Collective Sales Committee, noted that the 2011 attempt took place towards the end of an en bloc up-cycle but this time, market conditions are favourable.
“Now we can see that developers are hungry and looking for good sites. We also feel that Park West is one of the few sites available in the west zone and the government is going to launch the High Speed Rail terminal station in Jurong East,” he said. “There are good malls and the Ng Teng Fong General Hospital in Jurong East. The western region is also where the tertiary education institutions are mainly located.”
Including an estimated S$339 million in differential premiums for site intensification and lease top-up, the land rate for Park West site is estimated to be S$818 per square foot per plot ratio (psf ppr).
Located near Clementi MRT Station and Nan Hua Primary School, Park West condominium has 432 apartments and four shop units. The site spans 633,644 square feet, with 64 years left on the lease and a gross plot ratio of 2.1. Apartment owners are expected to bag around S$1.25 million to S$2.1 million each while the shop unit owners are each expecting to pocket S$1.1 million to S$1.5 million.
Elsewhere, JLL will be launching the tender for Florence Regency, a privatised HUDC estate in Hougang, on Aug 23 with a reserve price of S$600 million and freehold Amber Park condominium in the east on Aug 29 with a reserve price of S$768 million, said JLL regional director for capital markets Tan Hong Boon. This translates to a land rate of S$779 psf ppr for Florence Regency, inclusive of the differential premium of S$290 million for intensification of the site and lease top-up. The tender for Florence Regency will close on Sept 27.
For freehold Amber Park condominium, whose tender will close on Oct 3, its land rate is estimated to be S$1,284 psf ppr, with no development charges payable as its baseline gross plot ratio of 2.843 is higher than the plot ratio of 2.8 under the 2014 Master Plan, Mr Tan said.
So far this year, seven successful collective sales have chalked up a combined value of S$2.5 billion, far surpassing last year when only three deals worth S$1 billion were closed. These include residential projects One Tree Hill, Rio Casa, Eunosville, Albracca, Serangoon Ville as well as Goh & Goh mixed-use building and Citimac industrial complex.
Tampines Court, a privatised HUDC estate, is said to have received a bid of S$970 million with conditions attached but the deal is not officially closed yet.
More collective sale aspirants have also appointed their marketing agents. Former HUDC estates Laguna Park and Lagoon View have appointed Knight Frank and Edmund Tie & Company respectively. Freehold condominium Faber Garden has appointed CBRE.