CHUAN Park has finally been sold via private treaty for S$890 million, after the tender for its collective sale closed on Apr 26 without bids.
A source told The Business Times (BT) that the buyer is a developer that “recently finished a huge residential project”. However, BT is unable to confirm that, as both the marketing agent ERA Realty and the condominium’s Collective Sale Committee (CSC) have declined to comment.
Reports have since emerged that the buyers are related to developers Kingsford Group and MCC Singapore.
BT has seen a circular sent to owners inviting them to an owners’ meeting to be held on Jul 25, at which information will be shared on the preparation for the next stages and the estimated timeline for the completion of the sale.
It was reported last month that the owners of the 99-year leasehold condominium received an expression of interest (EOI) from a developer for S$860 million, below its reserve price of S$938 million.
According to a circular issued to owners by ERA, the CSC needed an 80 per cent mandate from owners of the condo by Jun 26 so as to enter into negotiations with the developer and to hammer out the terms of the sale-and-purchase (S&P) agreement. The deadline for the CSC to sign an S&P was Jul 5.
The price was subsequently raised to S$890 million, 5.1 per cent below the S$938 million reserve price.
The collective sale tender was launched on Mar 14, but before that, the condo had been put up for tender from Oct 5 to Nov 18, 2021, just before the government introduced fresh cooling measures in December. Chuan Park had also taken a shot at a collective sale in 2018, with an asking price of S$900 million — revised upwards from an initial S$790 million — but did not secure the necessary 80 per cent consent from owners at the time.
At S$938 million, the land rate, which includes an upgrading premium of S$192.62 million, works out to S$1,256 per square foot per plot ratio, ERA had said previously. The development change is not payable due to the existing high baseline.
The 400,588.72 square foot (sq ft) site has a gross plot ratio of 2.1 under the Urban Redevelopment Authority’s Master Plan 2019 and an achievable proposed gross floor area of 841,236.3 sq ft. Subject to the necessary approvals, ERA estimated that 900 units can be redeveloped there. It currently comprises 444 residential units and 2 commercial units.