Right to Serve

This 99-year leasehold property features a rooftop terrace and is valued at $22 million. The three property plays have previously collaborated on joint projects and have also bid to develop the Peace Centre and Peace Mansion together. If the bids are successful, the two developments will form the largest collective sale in 2021.

Park View Mansions

Park View Mansions is set to undergo a collective sale through a public tender. The asking price of $260 million includes a differential premium for optimizing the plot ratio and topping up the existing lease term to 99 years. The developer is expected to sell the units for a profit of about S$1.13 psf ppr.

The developer and investor groups that acquired the Park View Mansions have worked together on past projects. The three developers have a combined stake of 40%. The development comprises 160 units and is held under a 99-year leasehold. The development is a joint venture between KSH Holdings and Chip Eng Seng, who will finance the acquisition using internal funds and external borrowings. The developers have previously partnered with each other on a number of high-profile deals. Chip Eng Seng’s stake will be about 40% of the joint venture, which includes Sing-Haiyi Pearl and TK 189 Development. Both firms are controlled by Gordon Tang and his wife Celine Tang.

Unit sold for $965,000

A Singapore developer has sold a unit in Melbourne for almost $960,000. The developer, CEL Development, sold 77 units Bukit Batok EC out of the 378 units at its Kopar at Newton condo project, located off Newton Circus. The units are typically one-bedroom apartments. The price per square foot is $862.

The developer bought the property in 2016. It was supposed to be developed into three towers, with over 700 units. The developer said that the sale would allow the capital to be redeployed to better opportunities. The buyer will have vacant possession of the unit. However, the developer has not yet started any construction above ground.

Redevelopment of Park View Mansions

ERA Realty, the developer of Park View Mansions in Jurong, has announced the collective sale of the development, for a total price of $260 million. The development’s site area is 191,974 square feet and can be expanded to 403,145 square feet. The site is zoned for residential use. The property will be redeveloped into 440 residential units.

The developer is also collaborating with KSH Holdings to sell the property. The two companies will jointly develop a mixed-use development that will comprise three residential towers, each with a different design and floor plan. The units will be orientated so as to maximize views of the reservoir and nature. The development is expected to attract HDB upgraders.

Price of Park View Mansions

The Park View Mansions condominium in Jurong, Singapore is being offered for collective sale by its owner, ERA Realty. Its price is estimated to be approximately S$1,023 per square foot, or S$1,023 per plot ratio. This includes differential premiums for plot ratio optimization and topping up the current lease to 99 years.

The property is located next to Jurong Lake Gardens. It has a 99-year leasehold tenure and sits on a 191,974-square-foot site. Its land rate is $1,023 per sq ft, and its maximum gross floor area is 403,141 square feet. The property will be transformed into a residential complex.

The three property players have worked together before, and this time, they’re partnering for their latest project. It will be the largest collective sale in 2021. KSH and Ho Lee Group are also partners in the project. They’ve invested more than S$2.84 billion in real estate since December.

Contribution of KSH and Chip Eng Seng

The three property-plays have worked together on several joint projects and will finance the purchase of Park View Mansions with internal funds and external borrowings. This acquisition will not affect the companies’ net tangible assets or profits per share. Previously, KSH and Chip Eng Seng worked together in a series of high-profile deals, including the $650 million acquisition of the Peace Centre/Peace Mansion last December. They will be developing the site with 440 residential units.

The development will cost approximately $1.1 billion. The price includes a top-up lease and a 99-year top-up lease. The company expects to announce the transaction’s final price once it is completed. The sale price is based on land rates that are approximately S$1,023 per square foot per plot ratio. It will also include an estimated differential premium for maximising the development plot ratio of the site.