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View Full Version : CDL snaps up Amber Park for $906.7m, setting new record for freehold en-bloc sale



tonymontana
28-08-17, 18:12
https://www.edgeprop.sg/content/amber-park-launched-collective-sale-768-mil

"Amber Park has been launched for collective sale at a reserve price of $768 million, according to sole marketing agent JLL. The reserve price reflects a land rate of approximately $1,284 psf per plot ratio.

Completed in 1986, the freehold Amber Park comprises 200 units across two 27-storey blocks. Under the 2014 Master Plan, the 213,670 sq ft site is zoned ‘residential’ with a gross plot ratio of 2.8, according to JLL. It can be redeveloped into a high-rise apartment development of around 24 to 26 storeys, depending on the technical height controls imposed by the relevant authorities. Development charges are not payable for the proposed redevelopment.

Amber Park is located within walking distance to shopping malls and amenities such as Parkway Parade, Marine Parade Central, i12 Katong, and the East Coast Park. It is less than 200m away from the future Tanjong Katong MRT station."

PropVestor
29-08-17, 10:57
This is one huge prime FH site for development. It is akin to Makena sort of land size but far fewer in units by comparison. I hope it goes through. I see these guys sapping up above $2 mil units easy if it goes through. We need more action in Amber-Meyer Road area.

Looking ahead, Amber area is going to get really crowded as side-by-side plot of land get developed and re-developed.

All the best!
PropVestor

reporter2
29-08-17, 16:04
Amber Park launched for collective sale at $768 mil

Fiona Ho / EdgeProp | August 28, 2017


Amber Park has been launched for collective sale at a reserve price of $768 million, according to sole marketing agent JLL. The reserve price reflects a land rate of approximately $1,284 psf per plot ratio.

Completed in 1986, the freehold Amber Park comprises 200 units across two 27-storey blocks. Under the 2014 Master Plan, the 213,670 sq ft site is zoned ‘residential’ with a gross plot ratio of 2.8, according to JLL. It can be redeveloped into a high-rise apartment development of around 24 to 26 storeys, depending on the technical height controls imposed by the relevant authorities. Development charges are not payable for the proposed redevelopment.

Amber Park is located within walking distance to shopping malls and amenities such as Parkway Parade, Marine Parade Central, i12 Katong, and the East Coast Park. It is less than 200m away from the future Tanjong Katong MRT station.

Mr. Tan Hong Boon, Regional Director at JLL, says that Amber Park could possibly be one of the last collective sale sites of above 200,000 sq ft in the area.

“As far as we know, the last site with a land area above 200,000 sq ft that was transacted in this location was the ex-HUDC Amberville in 2006, which has been redeveloped into Silversea. Furthermore, Amber Park, with its large land area and freehold tenure, stands out amidst the many ex-HUDC or leasehold collective sale sites that are presently being marketed,” says Tan.

He adds that Amber Park has a high development baseline and is therefore, insulated from the half-yearly development charge rate revisions by the Chief Valuer, with the next hike expected on 1 September 2017.

“We expect strong interest for this site,” says Tan. The tender for Amber Park will close on October 3.

kenstonvil
29-08-17, 21:22
Next will be Katong Shopping Centre too...

Wonder what the launch price will look like as FEO have also yet to tear down and re-develop Amber Glades. Will this cause the resale psf price of Amber area to go up??

:eagerness:

aspirations
29-08-17, 22:01
there is much potential in the amber road area :)
what do u think could be the launch price of this new condo should Amber Garden's be enbloc-ed?

tonymontana
29-08-17, 22:49
there is much potential in the amber road area :)
what do u think could be the launch price of this new condo should Amber Garden's be enbloc-ed?

1800-2000psf. same as the nursery plot which taken up by UOL earlier in the year

reporter2
04-10-17, 12:02
CDL snaps up Amber Park for $906.7m, setting new record for freehold en-bloc sale

October 4, 2017

Jacqueline Woo


SINGAPORE - Amber Park, a 200-unit development in Amber Gardens, has been sold in Singapore's latest collective sale to two units linked to City Developments (CDL) for S$906.7 million.

This makes it a record amount garnered in a freehold collective sale in Singapore to date, said marketing agent JLL.

The winning bid also smashes the asking price of S$768 million.

The units involved in the sale were CDL's wholly-owned subsidiary Cityzens Development, and joint-venture partner Hong Realty. Hong Realty is the private real estate arm of the Hong Leong Group, and holds a 20 per cent stake in the project.

Under the 2014 Master Plan, the 213,670 sq ft Amber Park site is zoned for residential use, with a gross plot ratio of 2.8. It may be redeveloped to accommodate a high-rise apartment development of around 24 to 26 storeys, depending on the technical height controls imposed by the relevant authorities.

Mr Tan Hong Boon, regional director at JLL, said in a statement on Wednesday (Oct 4) that the tender was "keenly contested" and attracted eight bids.

The successful sale price of S$906.7 million reflects a land rate of about S$1,515 per sq ft per plot ratio, based on the allowable gross plot ratio of 2.8. Development charges are not payable for the proposed redevelopment.

This is the fourth time that the property was offered for sale collectively.

"There are not many sites of similar size that are available for redevelopment in the Amber Road location, as most of the larger projects have been sold en bloc and redeveloped over the years. Amber Park could possibly be one of the last collective sale sites with a land area above 200,000 sqft in this precinct," noted Mr Tan.

"At this sale price, the owners would expect to receive gross sale proceeds of between S$4.3 million and S$8.3 million each."

Separately, CDL said it is very familiar with the District 15 locale, having developed the existing 200-unit Amber Park itself, which was completed in 1986.

CDL and Hong Realty plan to redevelop the site into a luxury condominium development comprising four 25-storey blocks with close to 800 units and a basement carpark, subject to approval. Most apartments will have a North-South facing orientation, with many units commanding sea views.

CDL chief executive-designate Sherman Kwek noted that the Amber Park tender win marks one of the group's "most significant investment deals in the Singapore residential market in recent years"

"CDL was the original developer for Amber Park in the 1980s and we are honoured to be able to redevelop the site into yet another iconic landmark. In addition to its strong locational attributes, a distinct advantage of this site is its freehold status, something that is increasingly rare in Singapore," said Mr Kwek.

reporter2
04-10-17, 13:19
Amber Park sold for S$906.7m to CDL in collective sale

OCT 04, 2017

WONG KAI YI


CITY Developments Limited (CDL) has successfully acquired Amber Park, a 200-unit, 213,670 square feet residential development at Amber Gardens for S$906.7 million.

The sale was made to a joint venture of CDL's subsidiary Cityzens Development and Hong Realty by sole marketing agent JLL, a real estate services firm.

The price works out to S$1,515 per square foot per plot ratio (psf ppr).

The Amber Road site is minutes from East Coast Park and close to the central business district (CBD).

Tan Hong Boon, regional director at JLL said: "The tender was keenly contested and attracted as many as eight tender submissions. The successful sale price of S$906.7 million reflects a land rate of approximately S$1,515 psf ppr, based on the allowable gross plot ratio of 2.8. Development charges are not payable for the proposed redevelopment."

bargain hunter
04-10-17, 13:57
land cost alone is already 1515psf

Khng8
04-10-17, 14:01
Old 200 units to become new 800 units project.

Lord Anus
04-10-17, 14:12
land cost alone is already 1515psf

Yes, with a plot ratio of 2.8

Am I right to say that the developer bought a potential $4,242 psf of sellable GFA for a mere $1,515 psf of land?

Is that how it works?

Forest ang
04-10-17, 14:23
I am sure they will sell as 99yrs or 103yrs like The Shore @ Amber road

Amber Woods
04-10-17, 14:29
At $1515 psf ppr, it means that break-even price is about $2000 psf. CDL needs to sell at above $2000 psf to make any profit. So the strategy is again to build compact units. 800 units averaging 750 sqft in size may be the answer. Would you pay more than $2m for a 1000 sqft apartment there?

bargain hunter
04-10-17, 15:00
At $1515 psf ppr, it means that break-even price is about $2000 psf. CDL needs to sell at above $2000 psf to make any profit. So the strategy is again to build compact units. 800 units averaging 750 sqft in size may be the answer. Would you pay more than $2m for a 1000 sqft apartment there?

CDL may attempt a strategy similar to the positioning of Gramercy park and the upcoming New Futura. that is to sell a differentiated high end product at a premium. not sure if it will work in amber but looks like they will try it.

bargain hunter
04-10-17, 15:02
Yes, with a plot ratio of 2.8

Am I right to say that the developer bought a potential $4,242 psf of sellable GFA for a mere $1,515 psf of land?

Is that how it works?

nope. 1515psf is the "land cost" of the new units.

Amber Woods
04-10-17, 15:15
CDL may attempt a strategy similar to the positioning of Gramercy park and the upcoming New Futura. that is to sell a differentiated high end product at a premium. not sure if it will work in amber but looks like they will try it.

The Amber area with The Esta and One Amber being mass market RCR, it will not work to position the new development as Gramercy Park there.

Meyer Road area may have some chance to succeed.

bargain hunter
04-10-17, 15:16
The Amber area with The Esta and One Amber being mass market RCR, it will not work to position the new development as Gramercy Park there.

Meyer Road area may have some chance to succeed.

then i m not sure what they are thinking, but with the years of experience that they have, i'm sure they have a better idea than me.

Amber Woods
04-10-17, 15:19
then i m not sure what they are thinking, but with the years of experience that they have, i'm sure they have a better idea than me.

CDL just installed a new CEO in Sherman Kwek, the eldest son of KLB. He needs to impress with some positive results in land banking.

Kelonguni
04-10-17, 15:51
Indicator of land prices:

Sun Rosier in Bartley - 1325 PSFPPR

Amber Park - 1515 PSFPPR

Nanak Mansions - 1420 PSFPPR

The Albracca - 1409 PSFPPR

Jervois Garden - 1511 PSFPPR

bargain hunter
04-10-17, 15:51
capitaland very malu, din win anything, tomorrow die die must whack normanton park. lol.

Amber Woods
04-10-17, 15:54
capitaland very malu, din win anything, tomorrow die die must whack normanton park. lol.

Developers are like property buyers, fear missing the boat.

bargain hunter
04-10-17, 15:57
Indicator of land prices:

Sun Rosier in Bartley - 1325 PSFPPR

Amber Park - 1515 PSFPPR

Nanak Mansions - 1420 PSFPPR

The Albracca - 1409 PSFPPR

Jervois Garden - 1511 PSFPPR

add:
river valley site won by roxy for 110m at 1582psf.
sloane court 1613psf
correct jervois garden to "only" 1373psf.

Laguna
04-10-17, 16:17
CDL just installed a new CEO in Sherman Kwek, the eldest son of KLB. He needs to impress with some positive results in land banking.

Wharton School kid

thomastansb
04-10-17, 16:57
You can just take it as $1,515psf land cost. Rebuilding it will be around 2k psf BREAKEVEN.

To earn money, they will have to whack those high floor with seaview. So no matter what, they have to sell > 2.2k psf after factoring in agent fees, marketing fees etc. High floor will be closed to 3k psf. I am not sure if it is a realistic price given that it is not a pure seaview (blocked by other buildings) and not really very very near to MRT. So half there, half not there.




Yes, with a plot ratio of 2.8

Am I right to say that the developer bought a potential $4,242 psf of sellable GFA for a mere $1,515 psf of land?

Is that how it works?

orange
04-10-17, 17:34
Wharton School kid

So was Donald Trump.

Your point was..? :biggrin-new::biggrin-new:

Kelonguni
04-10-17, 18:16
Forward 4 year pricing, no one knows for sure if 2.3 to 2.5KPSF will be considered cheap for this area.

Current enbloc prices psf wise for my vicinity are even higher than the new property I bought in 2012. 4 years later, who knows? Maybe those who sell buy back the units?



You can just take it as $1,515psf land cost. Rebuilding it will be around 2k psf BREAKEVEN.

To earn money, they will have to whack those high floor with seaview. So no matter what, they have to sell > 2.2k psf after factoring in agent fees, marketing fees etc. High floor will be closed to 3k psf. I am not sure if it is a realistic price given that it is not a pure seaview (blocked by other buildings) and not really very very near to MRT. So half there, half not there.

thomastansb
04-10-17, 18:22
Of course la. 4 years later, maybe surrounding transacting at 2.5k psf. Or maybe transacting at 1k psf. No one can see or foretell. Either scenario is plausible.





Forward 4 year pricing, no one knows for sure if 2.3 to 2.5KPSF will be considered cheap for this area.

Current enbloc prices psf wise for my vicinity are even higher than the new property I bought in 2012. 4 years later, who knows? Maybe those who sell buy back the units?

Kelonguni
04-10-17, 19:07
Those who are honest to themselves will admit that it's going to go up.

Only not sure how much or how fast.


Of course la. 4 years later, maybe surrounding transacting at 2.5k psf. Or maybe transacting at 1k psf. No one can see or foretell. Either scenario is plausible.

Arcachon
04-10-17, 19:26
add:
river valley site won by roxy for 110m at 1582psf.
sloane court 1613psf
correct jervois garden to "only" 1373psf.

Sun Rosier in Bartley - 1325 psf ppr

http://www.straitstimes.com/business/property/sun-rosier-condo-fetches-271m-in-singapores-latest-en-bloc-sale

Amber Park - 1515 psf ppr

http://www.channelnewsasia.com/news/singapore/amber-park-sold-for-s-906-7m-in-record-freehold-en-bloc-sale-9277902

Nanak Mansions - 1429 psf ppr

http://www.straitstimes.com/business/companies-markets/nanak-mansions-in-meyer-road-sold-en-bloc-for-2011m

The Albracca - 1409 psf ppr

http://www.todayonline.com/business/albracca-meyer-road-sold-s691-million-en-bloc-deal

Jervois Garden - 1373 psf ppr

http://www.channelnewsasia.com/news/business/jervois-gardens-fetches-s-72m-in-en-bloc-sale-9252794

River Valley Road - 1362 psf ppr

https://www.edgeprop.sg/content/roxy-pacific-acquires-site-river-valley-road-110-mil

bargain hunter
04-10-17, 19:31
Sun Rosier in Bartley - 1325 psf ppr

http://www.straitstimes.com/business/property/sun-rosier-condo-fetches-271m-in-singapores-latest-en-bloc-sale

Amber Park - 1515 psf ppr

http://www.channelnewsasia.com/news/singapore/amber-park-sold-for-s-906-7m-in-record-freehold-en-bloc-sale-9277902

Nanak Mansions - 1429 psf ppr

http://www.straitstimes.com/business/companies-markets/nanak-mansions-in-meyer-road-sold-en-bloc-for-2011m

The Albracca - 1409 psf ppr

http://www.todayonline.com/business/albracca-meyer-road-sold-s691-million-en-bloc-deal

Jervois Garden - 1373 psf ppr

http://www.channelnewsasia.com/news/business/jervois-gardens-fetches-s-72m-in-en-bloc-sale-9252794

River Valley Road - 1362 psf ppr

https://www.edgeprop.sg/content/roxy-pacific-acquires-site-river-valley-road-110-mil

river valley road one does not include development charge at 1362psf.

tonymontana
04-10-17, 23:26
Yes, with a plot ratio of 2.8

Am I right to say that the developer bought a potential $4,242 psf of sellable GFA for a mere $1,515 psf of land?

Is that how it works?

Not sure what you mean?
It means developer paid $1515 psf for the potential GFA of the plot.
the breakeven psf for that potential sellable GFA is about 2000psf.
Long story short, launch price will be above 2k psf, unless CDL decides to play around with lease options.

reporter2
06-10-17, 19:16
Amber Park sets freehold collective sale record

Oct 5, 2017

Annabeth Leow


City Developments Limited (CDL) is taking a second bite of the cherry with plans to redevelop Katong condominium Amber Park, which it built in 1986, into a far bigger project.

It beat seven other bidders with a $906.7 million offer as the 200-unit estate finally made good on its fourth attempt at a collective sale.

With a price tag well above the $768 million reserve, Amber Park has also set a record by dollar value for freehold properties sold en bloc.

CDL lodged the bid through its Cityzens Development subsidiary and a joint-venture partner from parent Hong Leong Group in an 80:20 pairing.

It plans to turn the 213,675 sq ft plot into a condominium of around 800 luxury apartments, spread over four 25-storey towers. No development charge is needed for the site, which has an allowable gross floor area of roughly 598,290 sq ft.

Amber Park home owners stand to make $4.3 million each for standard apartments, or $8.3 million for penthouses.

But woe to the owner who missed out on a bonanza after offloading an apartment in September last year. That unit went for $2.08 million - but could have fetched more than twice that had the seller waited a year.

Key plus points for the estate include its proximity to sought-after schools like Tanjong Katong Primary School and Tao Nan School, as well as to the upcoming Tanjong Katong MRT station, due in 2023.

Mr Galven Tan, director of capital markets at real estate consultancy CBRE, noted: "Developers are hungry to get a development site sooner rather than later.

"Prime freehold sites with good attributes will continue to attract strong bids from developers."

CDL chief executive-designate Sherman Kwek, who called the transaction "one of our most significant investment deals in the Singapore residential market in recent years", said in a statement: "In addition to its strong locational attributes, a distinct advantage of this site is its freehold status, something that is increasingly rare in Singapore."

A CDL spokesman added that the site has "tremendous potential" with "healthy demand" expected, given that the Katong and East Coast area is well established but also stands to gain from renewal projects such as the upcoming Thomson-East Coast Line and the redevelopment of East Coast Park.

http://www.straitstimes.com/sites/default/files/articles/2017/10/05/st_20171005_abamber05_3466904.jpg

Mr Tan Hong Boon, regional director of marketing agent JLL, said: "There are not many sites of similar size that are available for redevelopment in the Amber Road location, as most of the larger projects have been sold en bloc and redeveloped over the years.

"Amber Park could possibly be one of the last collective sale sites with a land area above 200,000 sq ft in this precinct."

With CDL's land price working out to $1,515 per sq ft (psf) per plot ratio, ZACD Group executive director Nicholas Mak has estimated that the minimum price for new units on the site will cross the $2,200 psf mark.

"For developers to acquire choice development sites in today's market, it is necessary for them to pay above the reserve prices," he noted.

The previous record for a freehold bulk sale came in 2007, when GuocoLand forked out $835 million for Leedon Heights, off Holland Road.

http://www.straitstimes.com/sites/default/files/articles/2017/10/05/v3-online-171005-enblocresidentialdeals.jpg

reporter2
06-10-17, 19:26
CDL, Hong Leong unit bag Amber Park with 'aggressive' S$906m bid

Analyst says purchase price of S$1,515 psf ppr would mean selling prices of S$2,600 to S$2,700 psf

Oct 05, 2017

Lee Meixian


AMBER PARK, a 200-unit development at Katong, has been sold via a collective sale to a joint venture between a City Developments (CDL) subsidiary and Hong Realty, the private real estate arm of Hong Leong Group.

The S$906.7 million price tag makes it Singapore's largest freehold collective sale by dollar value to-date, knocking Leedon Heights off the spot. The latter had fetched S$835 million from developer GuocoLand in 2007. The Amber Park deal also marks the 15th successful collective sale this year - including industrial and mixed-used developments - amid a revived property market.

With it, the total transaction value of en bloc deals also crossed the S$5 billion mark, compared to just S$1 billion for the whole of 2016.

The buyers, Cityzens Development and Hong Realty, beat seven others to clinch the plot. They will respectively hold a 80:20 stake in the project.

This is the fourth en bloc attempt by the property, which was originally built by CDL. Its last collective sale tender in June 2015 had closed with no bids.

The sale price of S$906.7 million reflects a land rate of about S$1,515 per square foot (psf) per plot ratio, based on the allowable gross plot ratio of 2.8. Owners can expect to receive gross sale proceeds of between S$4.3 million and S$8.3 million.

http://www.businesstimes.com.sg/sites/default/files/image/2017/10/05/BT_20171005_NEWLMX_3117137-page-001_0.jpg

A CDL spokesman explained the developers' optimism: "After several years of subdued market conditions and macro-economic headwinds, the Singapore property market is seeing improved sentiment and increased activity. The private residential property price index for Q3 2017 showed its first rebound in 15 quarters (or four years). This could signal a budding recovery which CDL is well poised to benefit from."

On the site specifically, the spokesman added: "It is located in the established and well sought-after Katong and East Coast area that is in the beginning stages of transformation and gentrification; there is the upcoming Thomson-East Coast Line, and rejuvenation of East Coast Park. We expect healthy demand for the new project at the Amber Park site given its excellent locational attributes and rare freehold status."

Analysts found CDL's offer price to be bullish, at an 18 per cent premium over its reserve price of S$768 million.

OCBC Investment Research senior investment analyst Eli Lee said: "CDL's purchase was aggressive, but made sense, in our view. Given recovering home prices and a competitive landbanking environment, choice sites don't come easy."

He added that this was one of the last sites of such size in the popular Amber Road location, which is near the upcoming Tanjong Katong MRT station. He said that the management team probably gained confidence because it understands the area well, and was in fact the original developer of Amber Park three decades ago, in 1986.

Another analyst noted that CDL's purchase price would translate to a breakeven price of about S$2,200 psf and selling prices of S$2,600 to S$2,700 psf.

This is above transaction prices of around S$1,900 to S$2,000 psf at the nearby Amber Skye and Marine Blue.

http://www.businesstimes.com.sg/sites/default/files/image/2017/10/05/BT_20171005_NEWLMX5A_3117135-page-001.jpg

Perhaps reflecting this, CDL's share price failed to rise with the acquisition news, slipping two cents to end at S$11.42 on the stock market.

Under the 2014 Master Plan, the 213,670 sq ft site is zoned residential with a gross plot ratio of 2.8. This means that it can be built to an allowable gross floor area of about 598,290 sq ft. Development charges are not payable for the proposed redevelopment.

Tan Hong Boon, regional director at JLL, which marketed the property, said: "There are not many sites of similar size that are available for redevelopment in the Amber Road location, as most of the larger projects have been sold en bloc and redeveloped over the years. Amber Park could possibly be one of the last collective sale sites with a land area above 200,000 sq ft in this precinct."

In a statement, CDL said: "Subject to approval, CDL and Hong Realty plan to redevelop the site into a luxury condominium development comprising four 25-storey blocks with close to 800 units and a basement carpark. Most apartments will have a north-south facing orientation with many units commanding sea views."

Sherman Kwek, who became CEO-designate of CDL in August this year following CEO Grant Kelley's resignation, added that the site's freehold status is "a distinct advantage" because this is "something that is increasingly rare in Singapore".

The area is known for its rich heritage and dining options. It is also near amenities such as Parkway Parade and I12 Katong shopping centres, and schools such as Tanjong Katong Primary School, CHIJ (Katong) Primary and Tao Nan School.

The established private residential enclave is also a short walk to East Coast Park, and within a 15-minute drive to the central business district and Changi Airport by the East Coast Parkway expressway. Some 200m from the site, the Tanjong Katong MRT station is also expected to be completed in 2023.