Parisian sets new land price benchmark
Top Print Edition Stories
Published December 20, 2006
Parisian sets new land price benchmark
Top offer by OUE hits $1,730 psf ppr, say sources
By KALPANA RASHIWALA
(SINGAPORE) A new benchmark has been set for land price in Singapore.
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The Parisian: The freehold site is said to have drawn five bids in latest round of bidding
Bidding for the collective sale of The Parisian at Angullia Park has attracted a top offer that works out to a unit land price of about $1,730 psf of potential gross floor area including development charges (DC), sources have told BT.
An entity of the Lippo Group, most likely Overseas Union Enterprise (OUE), is said to have been the top bidder for the freehold residential site.
OUE is said to have been given an option for the purchase of The Parisian. The option is subject to the property's marketing agent CB Richard Ellis securing, within the next few weeks, the requisite approval for a collective sale from The Parisian's owners controlling at least 80 per cent of share values.
OUE's top bid for The Parisian topples the current record price for residential land set in October this year. That month, Wing Tai paid $1,369 psf per plot ratio (psf ppr) including DC, for Ardmore Point at Ardmore Park.
The top offer for The Parisian has also busted the current overall record price for land in Singapore. That record was set just this week on Monday when Sino Land was awarded the Collyer Quay site for commercial/hotel use on a 60-year lease for $1,540 psf ppr.
Analysts said that despite OUE bidding a record unit land price for The Parisian, it should still be a profitable venture, thanks to the current buoyant high-end residential prices seen in recent launches.
The breakeven cost for OUE's new project on the Parisian site is estimated at about $2,250 to $2,300 psf.
OUE is said to have bid about $228 million for the 49,114 sq ft site. Assuming the DC is $10.4 million as reported when the site was launched in early November, OUE's bid reflects a unit land price of $1,734 psf ppr. However, the DC quantum is not fully certain as the DC baseline has yet to be established. Sources said that even if the DC quantum turns out to be lower than the $10.4 million estimate, The Parisian's unit land price will still be a new benchmark for land in Singapore.
Prior to yesterday's bidding, CB Richard Ellis had garnered approval from the Parisian owners who control just over 60 per cent of share values.
CB Richard Ellis marketed The Parisian through an expression of interest exercise which closed earlier this month. As the initial price indications were shy of expectations, the firm embarked on negotiations that led to another two rounds of bidding, the last of which took place yesterday.
Yesterday's bidding is said to have drawn five bids in total. Property giant Far East Organization, Emirates Investment Group and Hong Kong parties are all thought to have participated in yesterday's exercise.
The Parisian site is zoned for residential use with a 2.8 plot ratio (ratio of potential maximum gross floor area to land area).
The site, which has a 36-storey height limit, can be redeveloped into a new project with about 68 units averaging 2,000 sq ft.
OUE is controlled by a 60:40 joint venture between Indonesia's Lippo Group and Malaysian tycoon Ananda Krishnan. Earlier this month, it announced a private placement of 20 million new shares at $10.50 apiece. The $204.3 million net proceeds will be used for redeveloping Overseas Union House at Collyer Quay, sprucing up Mandarin Gallery on Orchard Road into a luxury mall, land acquisitions and other uses
OUE gets option to buy The Parisian for $228.1m
Singapore Companies
Published December 27, 2006
OUE gets option to buy The Parisian for $228.1m
OVERSEAS Union Enterprise (OUE), controlled by a Lippo-Ananda Krishnan consortium, yesterday said it has been granted an option to purchase The Parisian at 21 Angullia Park through a $228.1 million collective sale.
This confirms an earlier BT report.
OUE said yesterday it has paid a $1 million option fee to the solicitors acting for The Parisian's sales committee as stakeholders.
Acceptance of the option is conditional on receipt of notification from The Parisian's sales committee that approval for a collective sale has been obtained from owners controlling at least 80 per cent of share values in the freehold property.
If the condition is not fulfilled by Jan 19 next year, the option will lapse and the $1 million option fee refunded to OUE without interest.
BT reported last week that the $228.1 million top offer by OUE for The Parisian reflects a unit land price of $1,734 per square foot of potential gross floor area inclusive of an estimated $10.4 million development charge.
However, the development charge quantum is not fully certain as the DC baseline has yet to be established, according to the earlier report.
Sources said that even if the development charge quantum turns out to be lower than the $10.4 million estimate, The Parisian's unit land price will still be a new benchmark for land in Singapore.
The Parisian is being marketed by CB Richard Ellis.
Closely watched OUE deal to buy Parisian is on
Top Print Edition Stories
Published January 19, 2007
Closely watched OUE deal to buy Parisian is on
By KALPANA RASHIWALA
(SINGAPORE) The sale of The Parisian at Angullia Park at a record unit land price of $1,735 psf per plot ratio is going ahead - news that will be closely watched by those tracking the high-end residential property sector.
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The Parisian: The $228.1 million deal works out to $1,735 psf ppr, including an estimated development charge of $10.5 million
Signatures have already been collected from owners controlling at least 80 per cent of share values in the freehold property, marketing agent CB Richard Ellis has confirmed.
This means the option for the property given to Overseas Union Enterprise (OUE) last month for $228.1 million - reflecting a record unit land price of $1,735 psf of potential gross floor area - is no longer conditional on the 80 per cent approval. OUE has up to Jan 24 to exercise the option.
'Definitely we'll exercise the option,' Stephen Riady, deputy chairman of Lippo Group, which effectively controls almost 53 per cent of OUE, told BT yesterday.
Mr Riady said a new luxury condominium project on the site is likely to be launched early next year.
The sale price OUE achieves for the development will depend on market conditions prevailing at the time, but 'I believe the market will be able to take premium projects in this location at about $3,500 psf on average by then', Mr Riady said. He pointed to the strength of The Parisian's location - just a stone's throw away from the Orchard MRT Station and the Orchard Turn project being developed above it. 'It will be a unique product,' he said.
The development will be wholly undertaken by OUE.
The number and mix of unit sizes are yet to be finalised, but the new condo project will have mostly large units, Mr Riady said.
BT understands that OUE's breakeven cost could come in at around $2,200 psf.
The 49,114 sq ft site is zoned for residential use with a 2.8 plot ratio - the ratio of potential maximum gross floor area to land area - and a 36-storey maximum height.
OUE's bid of $228.1 million was the highest when an expression of interest handled by CB Richard Ellis closed last month. The $1,735 psf per plot ratio unit land price includes an estimated $10.5 million development charge that OUE will have to pay the state.
Mr Riady said that besides acquiring $1.067 billion of direct property investments in Singapore last year, the Lippo Group also invested about $1.06 billion in listed OUE, which owns prized properties like Mandarin Hotel in Orchard Road, OUB Centre in Raffles Place, and Overseas Union House at Collyer Quay.
