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View Full Version : OUE sells 21 Angullia Park for $283m to China Sonangol



mr funny
06-10-09, 23:14
http://www.businesstimes.com.sg/sub/companies/story/0,4574,353270,00.html?

Published October 6, 2009

OUE in preliminary talks to sell site of The Parisian

Its shares fall 31% to close at $10 after company updates SGX on the move

By EMILYN YAP


OVERSEAS Union Enterprise (OUE) is considering the sale of 21 Angullia Park - a freehold residential site formerly known as The Parisian - which it bought en bloc for $228.1 million in 2007.

http://www.businesstimes.com.sg/mnt/media/image/launched/2009-10-06/BT_IMAGES_EYOUE6.jpg
Boom-time deal: OUE bought 21 Angullia Park en bloc for $228.1 million in 2007, when the property market was booming, and had plans to launch a condo on the site early last year. It has not launched the project so far

The company said yesterday it is 'engaged in preliminary discussions in relation to the possible disposal' of the site. It added that it is reviewing its overall financing strategy.

'As at the date of this announcement, there has been no agreement of definitive terms and there is no certainty that such discussions and review will proceed beyond preliminary stages or result in any transaction,' it said.

OUE was responding to a Singapore Exchange query on the counter's movement last Friday. OUE shares surged 57 per cent or $5.27 to close at $14.50 - a high not seen in more than a year.

After the update yesterday, the shares tumbled 31 per cent or $4.50 to $10.

OUE bought 21 Angullia Park near Orchard MRT Station when the property market - especially the high-end sector - was booming. Several developers were gunning for sites via collective sales.

The price of $228.1 million worked out to $1,735 per square foot per plot ratio (psf ppr) - a record on a psf basis for a while. This took into account an estimated $10.5 million development charge. Based on an earlier report, the breakeven cost for the project could be around $2,200 psf.

The company had plans to launch a luxury condominium - comprising mostly large units - on the site in early 2008.

But the financial crisis last year abruptly froze activity in the property market and the high-end sector was particularly hit.

So far, OUE has not launched 21 Angullia Park.

In August, the company posted a net loss of $47.8 million for the second quarter ended June 30. It said the weaker result was mainly due to the recognition of impairment losses of $52.2 million for two development properties, The Parisian and The Grangeford.

In June, OUE said its units had obtained a secured term loan for up to $300 million. The facility is secured by, among other things, first legal mortgages over 21 Angullia Park, 25 Leonie Hill, The Grangeford, fixed and floating charges over all present and future assets of the borrowers, and the assignment of insurance in respect of the properties.

The property market has been on the mend for the past few months. For instance, transaction prices at Four Seasons Park near 21 Angullia Park have been rising. A caveat was lodged in August for a 3,821-sq-ft apartment at $2,277 psf, whereas a unit of the same size went for $1,701 psf in February.

mr funny
06-10-09, 23:25
http://www.straitstimes.com/Money/Story/STIStory_438586.html

October 6, 2009 Tuesday

Loss-making OUE to dispose of freehold site

By Francis Chan

http://www.straitstimes.com/STI/STIMEDIA/image/20091006/b12-1.jpg
Overseas Union Enterprise paid $228.1 million in 2007 for the Angullia Park site of The Parisian condominium. -- PHOTO: CB RICHARD ELLIS

A FREEHOLD residential site valued at $261.1 million has been earmarked for disposal by Overseas Union Enterprise (OUE).

In a statement to the Singapore Exchange (SGX) yesterday, the mainboard-listed company disclosed it was engaged in preliminary discussions about the 'possible disposal of its residential site at 21 Angullia Park'.

OUE paid a hefty $228.1 million, or $1,735 per sq ft (psf) of potential gross floor area, two years ago for the site of The Parisian condominium.

In the half-year financial report ended June 30, the site is valued at $261.1 million.

The company admitted it was looking to dispose of the land in response to a query from SGX, prompted by a 57 per cent jump in its share price last Friday to $14.50.

In stark contrast to its second-quarter net profit of $12.1 million a year ago, the company posted a net loss of $47.8 million for the same period this year.

Revenue also fell some 25 per cent year-on-year to $28.5 million for the three months ended June 30, largely due to weak sales from a hospitality unit battered by the downturn and the Influenza A (H1N1) epidemic.

Second-quarter losses at OUE were also attributed to the recognition of some $52.5 million in impairment losses for two development properties - The Parisian and The Grangeford, a 99-year leasehold condominium with 192 units. The Grangeford was bought in late 2007 for $592 million, or $1,820 psf per plot ratio.

The group's property investments division saw rental income in the second quarter fall to $12,000 from $200,000 a year earlier.

OUE reported that it received no revenue from the sale of development properties in the second quarter, as it had yet to launch its residential projects.

The company originally planned to launch a luxury condominium project on the Angullia Park site, for which it paid top dollar in 2007 during the peak of the property cycle. The global crisis, however, seemingly put paid to its plans.

In June, it announced that it obtained a term loan facility for up to $300 million secured against its two properties in the Orchard Road area. About $165 million was used to refinance a loan related to the acquisition of The Parisian.

Yesterday, OUE said it was reviewing its overall financial strategy, but that it had yet to reach a conclusion.

It would make an announcement at the appropriate time and in compliance with its listing requirements.

OUE shares lost $4.50, or 31 per cent, to close at $10 at the end of trading yesterday.

Reporter
23-10-09, 00:21
http://sg.yimg.com/i/sg/providers/cnalogo4.gif
The Parisian site at Angullia Park sold for S$283M
Wong SiewYing
Channel NewsAsia
Thursday, 22 October 2009, 2047 hrs

http://www.channelnewsasia.com/imagegallery/store/phplsaVKA.jpg

The freehold site at Angullia Park that The Parisian sits on has been sold for S$283 million.

The buyer is China Sonangol Land, part of the China Sonangol international holding company headquartered in Hong Kong.

According to real estate consultancy CB Richard Ellis which brokered the deal, this is the biggest private residential land sale in two years.

The site, located near Orchard Road, can accommodate a 36-storey development comprising 52 three and four-bedroom units and two penthouses.

The Parisian was bought by developer Overseas Union Enterprise in a collective sale for S$228.1 million in December 2006.

In a filing with the Singapore Exchange, OUE said, the transaction presents the group with an opportunity to review its financing strategy for its property development business segment.

By selling the Parisian, OUE said it can focus its resources on its other project The Grangeford.

The sale will result in a profit for the Group of about S$19.1 million as at 30 June 2009.

It will also result in a rise in net tangible assets per share from S$10.84 to S$10.94, based on OUE's group results for Financial Year 2008.

And earnings per share will increase from S$0.21 to S$0.31 after the transaction.

CBRE said the purchase price of S$283 million will translate to about S$2,058 per square foot per plot ratio, with breakeven price estimated at S$2,500 to $2,600 psf.

It added that depending on the launch date the selling price could be around S$3,500 psf.

Property_Owner
23-10-09, 12:19
It added that depending on the launch date the selling price could be around S$3,500 psf.


That makes orchard price looks so cheap.

pweesng
23-10-09, 12:31
That makes orchard price looks so cheap.

that is probably the baseline. the design of the project is very nice, from SCDA... it would be pretty impressive

mr funny
25-10-09, 01:40
http://www.businesstimes.com.sg/sub/companies/story/0,4574,355849-1256327940,00.html?

Published October 23, 2009

OUE sells 21 Angullia Park for $283m to China Sonangol

By EMILYN YAP


OVERSEAS Union Enterprise (OUE) has sold its freehold residential site at 21 Angullia Park for $283 million, which will result in a profit of about $19.1 million.

The buyer is China Sonangol Land, a relatively unfamiliar name in the property market here. It is part of China Sonangol International, a Hong Kong- based group which also invests in oil, gas, minerals and reconstruction projects in Africa and Latin America.

According to CB Richard Ellis (CBRE), who brokered the deal, this could be the largest private residential land transaction since the $435 million sale of Westwood Apartments in 2007.

Formerly known as The Parisian, 21 Angullia Park has a site area of 49,113 square feet. The purchase price of $283 million works out to about $2,058 per sq ft per plot ratio (psf ppr).

CBRE estimates that this could lead to a breakeven price of $2,500-$2,600 psf and a selling price of around $3,500 psf, depending on when the site is launched.

OUE bought the site en bloc for $228.1 million in December 2006. According to CBRE investment properties executive director Jeremy Lake, the developer paid another $23 million as development charge and differential premium. It also incurred expenses for demolition and piling works, and in obtaining planning approval.

Based on OUE's June 30 financial report, the site was valued at $261.1 million. It has planning approval for a 36-storey project comprising 52 three- and four-bedroom units and two penthouses.

With the deal, China Sonangol will take over OUE's interest in its unit OUE (Angullia), which had a negative net tangible asset value of $24.4 million as at June 30.

China Sonangol will also take over $123.8 million in loans from OUE to OUE (Angullia). In addition, it will pay Standard Chartered Bank $164.5 million for the full discharge of OUE (Angullia)'s liabilities and the release of related security.

Assuming that the deal had been completed on Jan 1 last year, OUE's earnings per share for FY2008 would have been 31 cents, up from 21 cents.

'The transaction presents the group with an opportunity to review its financing strategy for its property development business segment by disposing of the Parisian and focusing its resources on the Grangeford, the larger of the two,' OUE said yesterday.

OUE bought The Grangeford through a $625 million collective sale in 2007. It said it intends to launch the site 'in due course', and would require funds to plan this development.

Meanwhile, the successful sale of The Parisian is a positive sign for the luxury property market here, CBRE's Mr Lake said. He understands there was at least one other overseas developer strongly interested in the site, and this shows that there are foreign players keen to participate in the market's pick-up.

Ngee Ann Polytechnic real estate lecturer Nicholas Mak noted that another potential collective sale site, Laguna Park, also drew interest from a foreign- owned company.

He reckoned these overseas firms could have profited from their markets and are looking for business opportunities elsewhere. With the launch of the integrated resorts (IRs) next year, these companies could be 'positioning themselves for the potential rally in the luxury sector next year'.

mr funny
25-10-09, 02:14
http://www.straitstimes.com/Money/Story/STIStory_445547.html

October 23, 2009 Friday

OUE resells freehold plot for tidy profit

The Parisian fetches $283m in the third-costliest private housing land sale in terms of psf pricing

By Fiona Chan


LESS than three years after The Parisian condominium at Angullia Park was sold en bloc, the site has changed hands again - this time at a much higher price.

Overseas Union Enterprise (OUE), which bought the freehold site for $228.1 million in December 2006, has resold the parcel for $283 million, it said in a statement yesterday. The site has been valued at $261.1 million.

The sale price works out to $2,058 per sq ft (psf) of potential gross floor area, making it the third most expensive private residential land sale ever. Only Westwood Apartments in Orchard Boulevard, at $2,525 psf, and The Ardmore at Ardmore Park, at $2,337 psf, were pricier.

The buyer is China Sonangol Land, the property arm of China Sonangol International Holding, an oil and gas company that is also involved in reconstruction and infrastructure projects.

The break-even price works out to about $2,500 to $2,600 psf, said property consultancy CB Richard Ellis (CBRE), which brokered the deal. Depending on the launch date, the finished units could sell in the region of $3,500 psf, it said.

This is the Chinese company's first purchase in Singapore but it may not be its last, said CBRE's executive director for investment properties, Mr Jeremy Lake. 'We believe they are still interested in Singapore, and once this project has proven successful, they may look for other sites here.'

Industry watchers said the sale may reignite interest in Singapore's luxury home market, which has been subdued amid the financial crisis and the global recession as foreign buyers stayed away.

The completion of the two integrated resorts next year could attract more well-heeled foreign buyers in 2010 and 2011, and overseas developers such as China Sonangol Land may be posi-tioning themselves for a potential rally in the high-end market, said Ngee Ann Polytechnic real estate lecturer Nicholas Mak. 'It looks as though it is still foreigners who are willing to pay high prices currently,' he said.

In a segment of the market that has not seen many land sales recently, the transaction of The Parisian is a 'fresh reference point' for prime land prices, said Mr Lake. It will give a boost to developers still holding on to expensive land in the Orchard area, waiting for the right time to launch their projects.

But while the sale may demonstrate that developers' appetite for high prices is back, Mr Lake does not expect many similar deals to occur after this. Most developers buy their land from the Government or through collective sales, simply because there are few developers who resell sites they have bought.

A sale like that of The Parisian is particularly rare because OUE had already demolished the condo and started piling works on the site.

In a statement yesterday, OUE said the sale of The Parisian will allow it to focus its resources on its larger development property, The Grangeford. It said it is still committed to the property development business and intends to launch The Grangeford in due course.

OUE incurred a net loss of $47.8 million for the second quarter ended June 30, largely due to impairment losses for The Parisian and The Grangeford, as luxury property values slumped in the recession.

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