Kheng Leong bags Minton Rise

Property
Published January 16, 2007

Kheng Leong bags Minton Rise


KHENG Leong, a privately owned property group controlled by the family of banker Wee Cho Yaw, has bought a privatised HUDC estate in Hougang for $209 million. The company inked a deal over the weekend to buy Minton Rise in a collective sale, according to sources.


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Sold: Owners of the privatised HUDC estate will receive about $611,000 on average


BT understands that Kheng Leong may team up with listed construction and property group Low Keng Huat in some way. But sources could not say for sure whether this would involve Low Keng Huat merely handling the construction of the project or taking an equity stake in the redevelopment as well.

Minton Rise has 342 apartments in total. Owners will receive about $611,000 on average. The deal will be subject to approval from the Strata Titles Board.

The $209 million that Kheng Leong has agreed to pay is the reserve price. NRA Real Estate brokered the sale. The unit land price works out to about $236 psf of potential gross floor area, inclusive of an estimated $84 million development charge and a $19.5 million sum (estimated last year but not confirmed by the authorities) for upgrading the site's lease from a then remaining term of 79 years to a fresh 99-year term.

The 472,378.5 sq ft site is zoned for residential use with a 2.8 plot ratio (ratio of potential gross floor area land area), which could mean a new condo with about 1,100 units averaging 1,200 sq ft.

Separately, on West Coast Road, the owners of the freehold Regent Garden are putting their homes up for collective sale. The indicative price is about $34 million or $375 psf of potential gross floor area, including development charges estimated at about $5.8 million. Colliers International is marketing the property through an expression of interest that closes on Feb 13.

This collective sale of a 99 year leasehold development will give a lot of hope to other aging leasehold development in the suburbs area.

u may be rite. i think we will see many more en blocs of big suburban condos. but first, there is 1 big former HUDC in district 10 that is yet to en bloc... ;)

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Originally Posted by Unregistered

u may be rite. i think we will see many more en blocs of big suburban condos. but first, there is 1 big former HUDC in district 10 that is yet to en bloc... ;)

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May I know what's the name of the project? U r not referring to Gillman Hts, right?