EN BLOC PURCHASE OF LEEDON HEIGHTS
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EN BLOC PURCHASE OF LEEDON HEIGHTS
April 27, 2007, 12.15 pm (Singapore time)
Guocoland to buy site for US$551m
SINGAPORE - Singapore-listed GuocoLand said on Friday that it has agreed to pay $835 million (US$551 million) for a large residential site.
GuocoLand, a unit of Hong Kong's Guoco Group and controlled by Malaysian tycoon Quek Leng Chan, said it has paid a deposit of $40.75 million for the 48,525 sq metre site which currently houses the Leedon Heights condominium.
GuocoLand plans to redevelop the site. -- REUTERS
Published April 28, 2007
GuocoLand buys Leedon Hts for $835m
By UMA SHANKARI
GUOCOLAND yesterday said it has bought Leedon Heights for $835 million in what is thought to be the largest ever lump sum paid for a collective sale site here.
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Leedon Heights: The price works out to about $1,062 psf ppr, including a development charge of about $40.2m. The latest purchase adds about 825,000 sq ft to the group's existing land bank of 1m sq ft of gross floor area.
The price works out to about $1,062 per square foot per plot ratio (psf ppr), including a development charge of about $40.2 million. Leedon Heights, in District 10, is located off Holland Road and Farrer Road.
The purchase will be the fourth major land acquisition in the last 12 months for GuocoLand, a Singapore-based developer controlled by Malaysian billionaire Quek Leng Chan. Leedon Heights will add about 825,000 sq ft to the group's existing land bank of one million sq ft of gross floor area.
The developer said in a filing to the Singapore Exchange that the purchase, which will close in mid-2008, will be funded by debt and internal resources.
Tang Wei Leng, director of investment advisory services at property firm DTZ which brokered the deal, said that the site drew strong interest. There were five bids and one expression of interest in all - including from major Singaporean developers such as CapitaLand, City Developments, SC Global and Ho Bee Investment, she said.
The price paid by GuocoLand is slightly higher than that previously indicated by DTZ when it was first put up for sale. In March, when the site was first launched, DTZ estimated that could fetch its owners $780 million.
Including an estimated development charge (DC) of $40.2 million, the suggested price works out to $981 psf ppr.
The site has a land area of about 522,000 sq ft and a 1.6 plot ratio. When launching the tender, DTZ said that provisional permission has been granted for a 12-storey condominium with 384 residential units.
Said GuocoLand yesterday: 'Given the locale - it is well-established with Singaporeans and foreigners alike - GuocoLand is confident of drawing strong interest from premium buyers from Singapore, the region and internationally.'
Data from the Urban Redevelopment Authority released yesterday showed that home prices grew a robust 4.8 per cent in the first quarter of the year, higher than the 3.8 per cent increase seen in the previous quarter. The hike was led by uncompleted projects in the Core Central Region (which includes Districts 10), where prices rose 7.3 per cent.
Right now, Leedon Heights consists of four blocks with a total of 314 units. Owners will walk away from the collective sale with upwards of $2.4 million each, Ms Tang said.
GuocoLand's shares climbed 20 cents to close at a one-year high of $5.40 yesterday. The stock has climbed 108.5 per cent since the start of the year, compared with a 13.8 per cent rise in the benchmark Straits Times Index.
GuocoLand buys Leedon Heights site for S$835m
By Chor Khieng Yuit, Channel NewsAsia | Posted: 27 April 2007 1942 hrs
SINGAPORE : Property developer GuocoLand has bought a large freehold residential site in prime District 10 for S$835 million.
The price is higher than S$780 million that had been expected.
Together with a S$40 million development charge, the price works out to S$1,062 per square foot per plot ratio.
The price tag is believed to be the largest single transaction by land price for a residential site.
It surpasses the S$638 million that fellow developer CapitaLand paid for Gillman Heights at Depot Road earlier this year.
The site, off Farrer Road, currently houses the Leedon Heights condominium.
It has a land area of approximately 48,525 square metres with a plot ratio of 1.6, which can accommodate buildings of up to 12 storeys.
Provisional permission has been given for a 12-storey condominium with 384 residential units.
The acquisition still needs approval from the Strata Titles Board and is expected to be completed by mid-2008.
Guocoland will finance this deal from internal resources and debt.
The property developer does not expect the deal to have any material impact on the net tangible assets per share or earnings per share for the current financial year ending June. - CNA/ms
To break even, Guocoland need to sell the new project at $1300 psf. Not easy, considering that more prime areas near Orchard are only transacted at $1300 psf.
April 28, 2007
$835M: Condo in Holland Road area sets new en bloc sale record
By Fiona Chan
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PHOTO: CHEW SENG KIM
AN AGEING condominium in the prime Holland Road area has just smashed the record for the largest collective sale in Singapore.
Leedon Heights fetched a whopping $835 million from developer GuocoLand, making it the most expensive estate to be successfully sold en bloc.
The price far surpasses the previous mark of $548 million, achieved by Gillman Heights in Alexandra Road in February.
Most owners of Leedon Heights' 314 units will reap about $2.35 million each, according to DTZ Debenham Tie Leung, which brokered the sale. That is more than double the last transacted price.
Penthouse owners in the 23-year-old estate are likely to reap almost double that, which is also more than twice the last open market price.
Ms Tang Wei Leng, director for investment advisory services at DTZ, said the tender for the estate was strongly contested. Five bids and one expression of interest, all from major players, were received by the time the tender closed yesterday.
GuocoLand's winning offer was higher than the estate's initial indicative price of $780 million.
Ms Tang also said the sale sets a benchmark unit price for the area. Including a development charge of $40.2 million, the Leedon Heights price works out to $1,062 per sq ft per plot ratio (psf ppr).
Nearby Holland Crest was sold last month for about $837 psf ppr, while Tulip Garden next door is now asking about $900 psf ppr, said Ms Tang.
She said the strong interest for Leedon Heights was not surprising as it is 'a very sought-after address'.
'When you think Leedon, you think good-class bungalows,' she said. 'This may be the only condo parcel with a Leedon address.'
Leedon Heights sits on a 522,322 sq ft plot off Holland Road and Farrer Road.
GuocoLand said yesterday that it plans to build a 12-storey block of 384 super-luxurious apartments on the site.
'We are very excited with the development potential of the sprawling site, which will allow us to be creative in our design and planning of the property,' said Mrs Trina Loh, managing director of GuocoLand Singapore.
The new units are expected to fetch about $1,800 to $2,000 psf, said Ms Tang of DTZ.
She added that the nearby Waterfall Gardens in Farrer Road is fetching an average of $1,500 to $1,600 psf.
'I would think that Leedon's location is better, and given the strength of the current market, it shouldn't be a problem to price the end products at $1,800 to $2,000 psf, or maybe even higher,' she said.
Leedon Heights, which was developed in the 1980s by Filipino-Chinese tycoon John Gokongwei, will be GuocoLand's fourth major freehold land acquisition in Singapore in the last 12 months.
It comes after Casa Rosita in Bukit Timah, Sophia Court in Dhoby Ghaut and Palm Beach Garden in the East Coast area.
GuocoLand also made headlines earlier this month by sinking $2 billion in a property project in central Beijing.
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You mean new condos near Orchard? Which ones... I had no idea they were still at that price. :oQuote:
Originally Posted by Madeira
One Jervois, Valley Park, The Regency at Tiong Bahru etc. They are all closer to Orchard area than Leedon Heights. All going at $1300 psf or less.Quote:
Originally Posted by ahlahdin
Hmmm. But River Valley and Tiong Bahru are perhaps noisier and have more traffic? Leedon Heights area is quieter and more 'exclusive' because of the GCBs around and not so many people walking around outside? Just my view.Quote:
Originally Posted by Madeira
Orchard Road and Marina Bay areas are very noisy, but the properties are worth the most.Quote:
Originally Posted by ahlahdin
Siberia is very quiet and exclusive. But no one want to buy a house there. Just kidding.