reporter2
28-07-22, 10:16
Chip Eng Seng, KSH, SingHaiyi in deal to acquire Park View Mansions for S$260m
Jul 28, 2022
MAINBOARD-LISTED property groups Chip Eng Seng : C29 0%and KSH Holdings : ER0 0% announced on Thursday (Jul 28) that it will be buying over 160-unit Park View Mansions for S$260 million, together with delisted SingHaiyi Group via a joint tender.
Parties to the joint tender, including Sing-Haiyi Pearl, TK 189 Development — an indirectly owned and associated unit of KSH Holdings - as well as Chip Eng Seng’s unit, CEL Development, have plans to redevelop the site into a residential development with up to 440 residential units.
All 3 joint tenderers said they would form a joint venture to acquire and redevelop the property, and at the same time signed a memorandum of understanding which splits participation interest in the acquisition on a 40, 30, 30 per cent basis among CEL, Sing-Haiyi Pearl and TK 189 respectively.
As of Thursday, a fee of S$100,000 has been paid by the joint tenderers as part of the tender fee. This figure will later form part of the purchase price of the property, said the trio of property plays in a joint release.
Both Chip Eng Seng and KSH said they would be funding the acquisition through internal cash sources, though KSH noted that it would also turn to external borrowings to fund its contributions.
The 2 added that their participation in the joint venture is not expected to have a material impact on net tangible assets and earnings per share for the current financial year.
Located along Yuan Ching Road, Park View Mansions sits on a total land area of 17,834.8 square metres and a permissible plot ratio of 2.1, bringing the maximum permissible gross floor area to 37,453.08 square metres.
The property has around 53 years left on its 99-year leasehold, which started on Oct 1, 1976.
It was previously launched for en bloc twice, before it was up for a collective sale for the third time last month, with an asking price of S$260 million.
The price translates to a land rate of S$1,023 per square foot per plot ratio, according to marketing agent ERA Realty. The land rate is inclusive of the estimated differential premium payable to maximise the site’s development plot ratio of 2.1 and to top up the existing lease to a fresh 99 years, subject to JTC and the Urban Redevelopment Authority’s planning approval.
The companies said they will make a further announcement when the acquisition is complete.
Shares of Chip Eng Seng and KSH both traded flat at S$0.625 and S$0.35 respectively as at 9.43 am on Thursday.
https://www.businesstimes.com.sg/real-estate/chip-eng-seng-ksh-singhaiyi-in-deal-to-acquire-park-view-mansions-for-s260m
Jul 28, 2022
MAINBOARD-LISTED property groups Chip Eng Seng : C29 0%and KSH Holdings : ER0 0% announced on Thursday (Jul 28) that it will be buying over 160-unit Park View Mansions for S$260 million, together with delisted SingHaiyi Group via a joint tender.
Parties to the joint tender, including Sing-Haiyi Pearl, TK 189 Development — an indirectly owned and associated unit of KSH Holdings - as well as Chip Eng Seng’s unit, CEL Development, have plans to redevelop the site into a residential development with up to 440 residential units.
All 3 joint tenderers said they would form a joint venture to acquire and redevelop the property, and at the same time signed a memorandum of understanding which splits participation interest in the acquisition on a 40, 30, 30 per cent basis among CEL, Sing-Haiyi Pearl and TK 189 respectively.
As of Thursday, a fee of S$100,000 has been paid by the joint tenderers as part of the tender fee. This figure will later form part of the purchase price of the property, said the trio of property plays in a joint release.
Both Chip Eng Seng and KSH said they would be funding the acquisition through internal cash sources, though KSH noted that it would also turn to external borrowings to fund its contributions.
The 2 added that their participation in the joint venture is not expected to have a material impact on net tangible assets and earnings per share for the current financial year.
Located along Yuan Ching Road, Park View Mansions sits on a total land area of 17,834.8 square metres and a permissible plot ratio of 2.1, bringing the maximum permissible gross floor area to 37,453.08 square metres.
The property has around 53 years left on its 99-year leasehold, which started on Oct 1, 1976.
It was previously launched for en bloc twice, before it was up for a collective sale for the third time last month, with an asking price of S$260 million.
The price translates to a land rate of S$1,023 per square foot per plot ratio, according to marketing agent ERA Realty. The land rate is inclusive of the estimated differential premium payable to maximise the site’s development plot ratio of 2.1 and to top up the existing lease to a fresh 99 years, subject to JTC and the Urban Redevelopment Authority’s planning approval.
The companies said they will make a further announcement when the acquisition is complete.
Shares of Chip Eng Seng and KSH both traded flat at S$0.625 and S$0.35 respectively as at 9.43 am on Thursday.
https://www.businesstimes.com.sg/real-estate/chip-eng-seng-ksh-singhaiyi-in-deal-to-acquire-park-view-mansions-for-s260m