Park View Mansions En Bloc Sold 2022

Lakeside Apartments’ Neighbour “Park View Mansions” Has Just Joined the En Bloc Successful List in 2022

Land acquisition fever in Singapore continues with the latest site, “Park View Mansions,” being picked up by several developers.

This will be the second collective sale site located within the Jurong Lake District that sold en bloc in 2022.

In a joint announcement on Thursday (July 28), Chip Eng Seng and KSH Holdings, both mainboard-listed property businesses, announced that they would purchase Park View Mansions for S$260 million in a joint tender with delisted SingHaiyi Group.

The joint tender participants, who include Sing-Haiyi Pearl, TK 189 Complex – an indirectly owned and linked company of KSH Holdings — and Chip Eng Seng’s business, CEL Development, want to rebuild the site into a new residential development with up to 440 units.

All 3 successful bidders said that they would create a joint venture to buy and redevelop the purchase site, and at the same time signed a memorandum of understanding in which CEL, Sing-Haiyi Pearl, and TK 189 each received a 40%, 30%, and 30% participation stake in the transaction, respectively.

As of Thursday, the joint tenderers had paid a deposit of S$100,000 as part of the tender fee.

In a joint statement, the three property players said that this amount would be added to the price of the property sale.

KSH and Chip Eng Seng both said that they would finance the purchase with internal funds. However, KSH added that they would also use external borrowings to cover their contributions.

The two also said that their participation in the joint venture would not have a big effect on net tangible assets or profits per share in the current fiscal year.

Chip Eng Seng says KSH Holdings and SingHaiyi Group are “known parties with whom it has developed solid working relationships via previous and continuing development projects.”

Last year, they collaborated on a series of high-profile transactions, including the $650 million acquisition of Peace Centre/Peace Mansion in December. Other parties involved in this transaction include Ho Lee Group.

Peace Centre/Peace Mansion is the top record collective sale in 2021.

In May of last year, subsidiaries of SingHaiyi, Chip Eng Seng, and Hong Kong-listed Chuan Holdings purchased Maxwell House for $276.8 million.

Just this week in district 12, freehold site Euro-Asia Apartments on Serangoon Road was sold to a KSH indirect subsidiary for $221.18 million.

Market watchers said that developers usually join forces to share resources and cut down on development costs.

Market analysts said that the increase in activity reflects a continuation of the collective sales cycle that began in 2020, but was curtailed by the December 2021 new cooling measures.

They added that some developers are now confident enough to get back into the market because new launches like Liv@MB, Piccadilly Grand, and AMO Residence are in high demand and there aren’t many unsold units left.

Ms. Tracy Goh, head of investment and collective sales at PropNex, observed that asking prices for certain collective sale sites have risen, and it remains to be seen if developers will bite.

Many have anticipated that collective sale sites will continue to fill the void “given the relatively limited availability of residential plots through the Government Land Sales (GLS) programme.”

However, pricey collective sale sites may collapse, developers tend to avoid ridiculous price tag.

Most market analysts agree that small and medium-sized sites will make up the majority of collective sales this year, with “some larger sites successfully transacting if the price is right.”

Park View Mansions, located on Yuan Ching Road, has a total land area of 17,834.8 square metres and an allowed plot ratio of 2.1, increasing the maximum allowable gross floor area to 37,453.08 square metres.

The property has about 53 years remaining on its 99-year lease, which began on October 1, 1976.

According to marketing firm ERA Realty, the sale price amounts to a land rate of S$1,023 psf ppr.

The land pricing includes the expected difference premium due to maximizing the site’s development plot ratio of 2.1 and extending the current lease to a new 99-year term, subject to planning permission from JTC and the Urban Redevelopment Authority.

Further announcements will be made when the acquisition is complete.

Park View Mansions’ owners’ first attempt at collective sale was in April 2018. The tender was closed without attracting any parties at that time.

They try again in 2019, but this time there are no takers.

After watching their neighbour, “Lakeside Apartments“, successfully sold en bloc in May this year, they decided to make another attempt and launch their property for sale the following month.

This time, their wish came true with the buyer being found and having arrived at their doorstep.