Euro-Asia Apartments was successfully sold enbloc to KSH Holdings’ indirect subsidiary for S$222.18 million, on their second attempt at a collective sale, after its first attempt was launched in 2018 at a lower reserve price of S$200 million.
The transacted price translates to a land rate of S$1,313 per square foot per plot ratio (psf ppr), inclusive of bonus balcony area. No development charge was applicable.
PRESS COVERAGE
26 July 2022
SINGAPORE - Euro-Asia Apartments, an 84-unit development in Serangoon Road, has been sold via a collective sale tender to an associated company of Singapore-listed property firm KSH Holdings for $222.18 million, above its guide price of $218 million.
The associated company, KSH Ultra Unity, is also owned by H10 Holdings, an associate company of Ho Lee Group and SLB Development, whose parent is Lian Beng Group.
H10 Holdings and SLB Development have an equity interest of 36 per cent and 15 per cent respectively.
Owners of the freehold condominium units ranging from 840 sq ft to 2,443 sq ft will each stand to get between $1.76 million and $3.97 million, Mr Low Choon Sin, SRI managing partner of marketing agent SRI Capital Market told The Straits Times on Tuesday evening (July 26).
Euro-Asia Apartments has tried for a collective sale more than four times, including in 2010 when it was put up for sale at $142 million. The most recent attempt was in 2018 at $200 million.
The $222.18 million price translates to a land rate of $1,313 per square foot per plot ratio (psf ppr), inclusive of bonus balcony. No development charge is applicable.
KSH told the Singapore Exchange on Tuesday that its associate firm intends to redevelop the site into a 172-unit residential development.
Located near Boon Keng MRT station, the 56,476 sq ft site is zoned for residential use with an allowable plot ratio of 2.8. The maximum permissible gross floor area is about 158,132 sq ft.
Mr Low said the tender received robust interest because of its city fringe location, accessibility to the MRT and abundance of amenities within the matured neighbourhood.
"The balance inventory of new housing units within District 12 and the vicinity is low. This en bloc sale will allow the developer to replenish its landbank and meet growing demand," he added.
Completion of the purchase is subject to fulfilment of terms and conditions.
KSH said the purchase and proposed development will be financed with internal funds and bank loans, and is not expected to have material impact on the group's net tangible assets and earnings per share for the financial year ending March 31, 2023.
According to Cushman & Wakefield, nine residential developments were sold en bloc for $1.6 billion from January till yesterday, compared with four deals totalling just $93 million in the first seven months of last year.
Residential collective sales so far this year have also surpassed the $1.17 billion worth of sales for the whole of last year.
PRESS COVERAGE
1 Jun 2022
SINGAPORE - Singapore's collective sale market appears to be heating up, with at least two freehold residential properties renewing their bids to sell en bloc, as developers look to increase their landbanks amid robust sales at new launches.
Euro-Asia Apartments, an 84-unit development in Serangoon Road, was put up for collective sale via public tender at a guide price of $218 million, while Jansen Mansions in the Kovan area is trying its luck for a third time at $18.9 million.
According to Cushman & Wakefield, five residential developments were sold en bloc for $447.7 million in the first five months of 2022, compared with three deals totalling just $74.4 million in the same period last year.
For the whole of 2021, eight residential collective sale deals totalling $1.17 billion were done.
Mr Wong Xian Yang, head of research at Cushman & Wakefield, credited the $273.89 million sale of Lakeside Apartments for the sharp increase in residential collective sale deal value so far this year.
He said: "This suggests that developers remain keen to replenish their landbanks amid limited inventory and still-strong buying demand for new launches post the new cooling measures. Developers would be encouraged by the favourable market response for recent new launches such as Piccadilly Grand and Liv@MB."
But the current activity is still a far cry from the 2018 peak of more than $10 billion in total for residential collective sale transaction volume, he added.
At $218 million, the land rate for Euro-Asia Apartments translates to $1,288 per square foot per plot ratio (psf ppr), including bonus balcony gross floor area. No development charge is payable, and the tender will close on July 25 at 2.30pm.
If successful, the owners of units ranging from 840 sq ft to 2,443 sq ft will each stand to get between $1.7 million and $3.9 million, marketing agent SRI Capital Market told The Straits Times.
Euro-Asia Apartments has tried for a collective sale more than four times, including in 2010 when it was put up for sale at $142 million. The most recent attempt was in 2018 at $200 million.
Mr Low Choon Sin, SRI's managing partner, said he expects interest to be strong due to the location, palatable price quantum and redevelopment potential.
"Euro-Asia Apartments is situated within the mature estate of Boon Keng and Bendemeer, and within proximity to the growing catchment of Farrer Park.
"There is limited supply of land sale opportunities in District 12 and recent new launches in the city fringe have shown a healthy take-up rate," he said.
Located near Boon Keng MRT station, the 56,476 sq ft site is zoned for residential use with an allowable plot ratio of 2.8. The maximum permissible gross floor area is about 158,132 sq ft. Based on latest Urban Redevelopment Authority guidelines, a new residential development could potentially yield 173 units.
Meanwhile, the 12-unit Jansen Mansions in Kovan will be launched for sale via public tender on June 2.
Each owner stands to receive $1.575 million based on a $18.9 million reserve price, said marketing agent PropNex Realty.
The price works out to a land rate of $863 psf ppr, including development charges. After factoring in the 7 per cent bonus balcony space, the land rate is $855 psf ppr. The tender will close on June 28 at 2pm.
After its first stab at a collective sale in 2018, Jansen Mansions tried again in February 2021 at a reserve price of $19.8 million. The price was cut to $18.5 million in a relaunch in August 2021 that was unsuccessful.
Ms Tracy Goh, head of investment and collective sales at PropNex, noted that despite the latest property cooling measures, demand for new units has remained strong, as evidenced by robust sales at new launches Piccadilly Grand and Liv@MB.
The 999-year site can be redeveloped into a 21-unit project, with units averaging 100 sq m each.
The 16,592.7 sq ft is zoned for residential use with a plot ratio of 1.4 and a gross floor area of 23,229.8 sq ft.