Owners say enbloc sale of Tulip Garden has been called off

Published July 20, 2007

PROPERTY FOCUS

Tulip Garden sold for $516 million

By KALPANA RASHIWALA


TULIP Garden in the Holland Road area has been sold for $516 million or about $1,018 per square foot of potential gross floor area. No development charge is payable on the site.
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Collective sale: A unit of Bravo Building Construction bought Tulip Garden, located in the Holland Road area, for $1,018 psf of potential gross floor area

The buyer is a unit of Bravo Building Construction, a five-year-old construction and property development business. Bravo is expected to team up with a local private equity partner for the acquisition.

Bravo's breakeven cost for a new condo on the 316,709 sq ft site is estimated at around $1,500 psf, the company's managing director Jenny Pang told BT. 'We plan to develop the site into a new luxury condo with about 290 to 316 apartments with sizes ranging from 1,600 to 2,000 sq ft.'

'Under the current scenario, a new 12-storey project on the site would be able to sell at $2,000 psf average,' Ms Pang added. The project should be launch-ready around Q2 next year.

Savills (Singapore) brokered the collective sale of Tulip Garden through private treaty after the tender for the site closed on June 12.

The $1,018 psf per plot ratio fetched for the freehold Tulip Garden is in line with recent land transactions in the area. In April, the nearby Leedon Heights, also freehold, was sold for $1,062 psf per plot ratio. Market watchers regard Leedon to be a superior site as it is in a quieter location away from the main road and boasts unblocked views of good class bungalows.

Late last month, the leasehold Farrer Court was sold for $762-783 psf ppr. The Farrer Court site has a higher plot ratio of 2.8 and maximum height of 36 storeys, compared with Tulip Garden and Leedon Heights, with a 1.6 plot ratio and 12-storey maximum height.

Tulip Garden currently has 164 units comprising 96 apartments, 66 maisonettes and two shophouses. Their owners will receive proceeds of $2.5 million to $4.2 million per apartment, $3.4 million to $3.5 million per maisonette, and $1.1 million per shop unit.

In June this year, a maisonette in the development changed hands at $3.4 million. The seller had consented to the collective sale, and BT understands from Savills that the collective sale agreement (CSA) requires the new owner to also sign the CSA at the agreed reserve price.

The new owner is expected to receive 'marginally more' from the en-bloc sale than the sum he paid for, according to Savills director of investment sales Steven Ming.

Another maisonette in the development was sold in May for $2.48 million.

The sale of Tulip Garden is subject to approval from the Strata Titles Board. To date, owners controlling more than 80 per cent of share values in the development have signed the collective sale agreement.

Earlier this month, Bravo Building Construction purchased the freehold Pender Court - off West Coast Highway and near the Caribbean and Reflections at Keppel Bay condos - for $80 million or about $872 psf ppr. The company has bought more than a dozen sites in Singapore since September last year. These include Castle Court at Changi Road, Regent Court in Serangoon, and Koon Seng House in the Still Road area.

July 20, 2007

FARRER ROAD SITE

Tulip Garden sold en bloc for $516m


THE 164-unit Tulip Garden estate in Farrer Road has been sold en bloc for $516 million, reaping owners anything from $2.5 million to $4.2 million each.

However, the price paid by Bravo Building Construction is below the $633 million - that is $1,250 per sq ft (psf) of potential gross floor area - asked for by the owners when the freehold estate went on sale by tender in late May.

Bravo's price values the sprawling 316,709 sq ft estate at $1,018 psf and there is no development charge payable. That is still well up on the indicative price of only $900 psf placed on the estate when an expression of interest was called for at the start of the year.

The smallest units are 1,700 sq ft - these owners will get about $2.5 million - while the largest go up to 3,400 sq ft. Owners of these will get $4.2 million. Records show that a 2,659 sq ft unit sold for $3.4 million, or $1,278.7 psf, in June. But late last year, a 2,583 sq ft unit sold for $1.975 million, or $765 psf.

Bravo Building Construction bought Pender Court in West Coast earlier this month for $80 million. Its development projects include the 35-unit Sims Dorado in Geylang.

Tulip Garden is in a hot spot for potential collective sale properties. It is a road away from Leedon Heights, which GuocoLand bought in April for $835 million, or about $1,062 psf. The leasehold Farrer Court, sold en bloc late last month, is a stone's throw away.

JOYCE TEO

Freehold Tulip Garden sold en bloc for S$516 million

Posted: 20 July 2007 1253 hrs


SINGAPORE: Tulip Garden, located at the corner of Holland and Farrer Roads, has been sold in a collective sale S$516 million or S$1,018 per square foot of potential gross floor area.

Bravo Building Construction, which bought the property, will not need to pay any development charge to the government as they are not enhancing the use of that piece of land.

Each owner of the 164-unit development will get between S$2.5 million and S$4.2 million, depending on the size of their units.

These units range from 1,700 square feet to 3,400 square feet each.

The transacted price is slightly below the S$1,250 per square foot that the owners had asked for when the property was put on the market.

But it is still above the indicative reserve price of S$900 per square foot set at the beginning of this year.

The Tulip Garden site has a plot ratio of 1.6 which means a new building of up to 12 storeys can be built on the site.

Bravo is likely to redevelop the land into a luxury condominium of up to 316 units ranging between 1,600 and 2,000 square feet each.

The deal still requires the approval of the Strata Titles Board.

The sale of Tulip Garden comes hot on the heels of the collective sales of its neighbouring properties, Leedon Heights and Farrer Court.

The freehold Leedon heights estate was sold to Guocoland in April for S$835 million or S$1,062 per square foot per plot ratio.

And last month, CapitaLand bought Farrer Court, which has a 99-year lease, for S$1.34 billion or up to S$783 per square foot per plot ratio.


- CNA/so

What is the latest?

Oi. what happened to horizon towers saga?

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Originally Posted by Unregistered

What is the latest?

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Some owners whose tenants has already moved out, are happy to hand over the keys two weeks before completion.

I wish they got rid of the dead wood on the forum - al the good stuff is gone. Gillman, Bayshore, Horizon. probably too much anti-enbloc rhetoric for someone's liking.

Well back to square one.

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Originally Posted by Unregistered

Some owners whose tenants has already moved out, are happy to hand over the keys two weeks before completion.

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Great news. Which means money on the way....

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Originally Posted by Unregistered

Some owners whose tenants has already moved out, are happy to hand over the keys two weeks before completion.

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Oh my new place not ready yet. TOP only in October. May have to look for a serviced apartment then.

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Originally Posted by Unregistered

Great news. Which means money on the way....

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BRO DON'T COUNT YOUR CHICKENS BEFORE THEY HATCH. KEEP FINGERS CROSSED. SAW HOW KUWAIT FINANCE WALKED OUT? HOPE EVERYTHING GOES SMOOTHLY.

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Originally Posted by Unregistered

BRO DON'T COUNT YOUR CHICKENS BEFORE THEY HATCH. KEEP FINGERS CROSSED. SAW HOW KUWAIT FINANCE WALKED OUT? HOPE EVERYTHING GOES SMOOTHLY.

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The fat cats are active brother. didn't you hear about it?

heard survey work being done today sent by buyer.

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Originally Posted by Unregistered

The fat cats are active brother. didn't you hear about it?

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Oh, now I see why you said that letter was tweaked in their favour.

can move out anytime, just make sure property tax paid to end 2008. (one month rental price.) the sinking fund will be responsible for maintanance till end 2008.

what happened to makeway view enbloc? any further development?

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Originally Posted by Unregistered

heard survey work being done today sent by buyer.

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Any idea when money will be paid to SPs?

The authorities should make it compulsory for all developments in the midst of en-bloc proceedings to place signage at the main entrance to this effect; thus preventing the genuine home buyers from their wasting their valuable time when looking for a new family home - the geniune home buyer does not want the en-bloc fiasco. There are significant differences between enbloc homes and family homes.

As newly built homes are fitted with bomb shelters, it would be logical that the old ones be retrofitted with en-bloc shelters!!!

Any idea when the money is coming in?

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Originally Posted by Unregistered

Any idea when the money is coming in?

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Good question.

Why so quiet?

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Originally Posted by Unregistered

Why so quiet?

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heard bravo not completing makepiece purchase????
wonder they complete this purchase.............

zzzzzzzzzzzzzzzzzzzzzzzzz

Bravo is trying to sell some percentage of the sale to other developers. Otherwise deal is off.

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Originally Posted by Unregistered

Bravo is trying to sell some percentage of the sale to other developers. Otherwise deal is off.

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What is the legal recourse for owners of Tulip Garden?

When is the money coming?

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Originally Posted by Unregistered

Bravo is trying to sell some percentage of the sale to other developers. Otherwise deal is off.

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can explain more???

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Originally Posted by Unregistered

can explain more???

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bravo is finished..............
many project cannot complete....................

Thank you to the "experts", The owners won toto.

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Originally Posted by Unregistered

Thank you to the "experts", The owners won toto.

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Toto? Were they playing Toto for a year?

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Originally Posted by Unregistered

Thank you to the "experts", The owners won toto.

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Hip, Hip, Hurray!!!
toto + a property at Leedon Place Development - a much sought after GCB address :D