Two en bloc sales delayed; developer asks for more time

April 1, 2008

Two en bloc sales delayed; developer asks for more time

Bravo's deals involve Tulip Garden for $516m and Pender Court for $80m

By Joyce Teo


A SMALL property firm that snapped up enough sites to place it among the top en bloc players last year has put off completing two deals while it ties up funding.

Because of the delays, owners at one condo are still waiting to pick up cheques for well over $1 million each. They expected payment in late February but an extension put this back to March and now the due date is late this month.

The payments are pending from Bravo Building Construction, a relatively new firm on the property scene. It bought freehold Pender Court condominium in the Telok Blangah area for $80 million last July and soon after purchased Tulip Garden near Holland Road - also freehold - for $516 million.

But completion of both deals seems to have stalled.

Completion is at the final stage of the sale process and triggers the final payment - usually around 95 per cent of the purchase price - to owners. The remaining 5 per cent is paid when the owner vacates.

These headaches for the owners come amid a slowing market for collective sales. The first quarter this year saw just one relatively small deal, compared with some 25 notched up in the same period last year.

The Tulip Garden transaction is expected to be completed late next month but Bravo has already asked for two postponements - first to July 23 and then Aug 7.

It has also asked for extensions to pay an additional 5 per cent of the purchase price - $25.8 million.

This is a routine payment required once the Strata Titles Board approves a sale. An initial 5 per cent deposit was paid when the sale was done.

The deadline for the second 5 per cent payment was March 13 but Bravo won approval to move it to April 7. Then in mid-March, it again asked to move the date, this time to May 5.

However, before the sale committee could respond to the request, it is understood that Bravo asked again to have the date moved even further back, to June 7.

Tulip Garden sold for about $1,018 per sq ft. It has 164 units comprising 96 flats, 66 maisonettes and two shophouses. Flat owners stand to reap $2.5 million to $4.2 million while maisonette owners will receive about $3.4 million each. The shop units will get about $1.1 million each.

The owners are meeting this weekend to consider Bravo's requests that the completion date be pushed back to Aug 7 and the deadline for the $25.8 million payment be extended to June 7.

The Pender Court deal is even further behind schedule.

Bravo was supposed to have completed the sale on Feb 25 but had it postponed, initially to around mid-March. It then asked for a further extension to April 24, which has apparently been granted.

Pender Court's 48 owners should each get $1.6 million or so for their flats, which sold for about $872 psf.

Sources have told The Straits Times that they understand Bravo is committed to completing the two purchases and just needs more time to arrange funding.

Bravo, which was registered in 2002, reportedly picked up $824.5 million worth of en bloc sale deals last year, making it the fourth-largest buyer of en bloc sites.

Bravo's directors could not be reached for comment, despite numerous telephone calls and a visit to its office in an industrial building in Geylang Road last Friday. A Bravo staff member said that the company directors were away on business.

[email protected]

Quote:

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Originally Posted by mr funny

April 1, 2008

Two en bloc sales delayed; developer asks for more time

Bravo's deals involve Tulip Garden for $516m and Pender Court for $80m

By Joyce Teo


A SMALL property firm that snapped up enough sites to place it among the top en bloc players last year has put off completing two deals while it ties up funding.

Because of the delays, owners at one condo are still waiting to pick up cheques for well over $1 million each. They expected payment in late February but an extension put this back to March and now the due date is late this month.

The payments are pending from Bravo Building Construction, a relatively new firm on the property scene. It bought freehold Pender Court condominium in the Telok Blangah area for $80 million last July and soon after purchased Tulip Garden near Holland Road - also freehold - for $516 million.

But completion of both deals seems to have stalled.

Completion is at the final stage of the sale process and triggers the final payment - usually around 95 per cent of the purchase price - to owners. The remaining 5 per cent is paid when the owner vacates.

These headaches for the owners come amid a slowing market for collective sales. The first quarter this year saw just one relatively small deal, compared with some 25 notched up in the same period last year.

The Tulip Garden transaction is expected to be completed late next month but Bravo has already asked for two postponements - first to July 23 and then Aug 7.

It has also asked for extensions to pay an additional 5 per cent of the purchase price - $25.8 million.

This is a routine payment required once the Strata Titles Board approves a sale. An initial 5 per cent deposit was paid when the sale was done.

The deadline for the second 5 per cent payment was March 13 but Bravo won approval to move it to April 7. Then in mid-March, it again asked to move the date, this time to May 5.

However, before the sale committee could respond to the request, it is understood that Bravo asked again to have the date moved even further back, to June 7.

Tulip Garden sold for about $1,018 per sq ft. It has 164 units comprising 96 flats, 66 maisonettes and two shophouses. Flat owners stand to reap $2.5 million to $4.2 million while maisonette owners will receive about $3.4 million each. The shop units will get about $1.1 million each.

The owners are meeting this weekend to consider Bravo's requests that the completion date be pushed back to Aug 7 and the deadline for the $25.8 million payment be extended to June 7.

The Pender Court deal is even further behind schedule.

Bravo was supposed to have completed the sale on Feb 25 but had it postponed, initially to around mid-March. It then asked for a further extension to April 24, which has apparently been granted.

Pender Court's 48 owners should each get $1.6 million or so for their flats, which sold for about $872 psf.

Sources have told The Straits Times that they understand Bravo is committed to completing the two purchases and just needs more time to arrange funding.

Bravo, which was registered in 2002, reportedly picked up $824.5 million worth of en bloc sale deals last year, making it the fourth-largest buyer of en bloc sites.

Bravo's directors could not be reached for comment, despite numerous telephone calls and a visit to its office in an industrial building in Geylang Road last Friday. A Bravo staff member said that the company directors were away on business.

[email protected]

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Y ask for time extension???? Give up la.....
516M is not a joke....... different class of developer player

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Originally Posted by Unregistered

Y ask for time extension???? Give up la.....
516M is not a joke....... different class of developer player

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Seems it is the first step.

Quote:

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Originally Posted by Unregistered

Seems it is the first step.

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first step to ... ?

Quote:

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Originally Posted by Unregistered

first step to ... ?

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They have bitten off more than they can chew.

It is highly unlikely that this en bloc can proceed, unless these developers are bought over by one of the big guys. Otherwise, they will just wind up and the en bloc deal becomes effectively dead.

On the whole, this will be a good wake up call for the market. Will make everyone, buyers and sellers more realistic, and also prevent over and unjustified exuberance. May also stave off Govt action (should the sub prime thing blow over).

Quote:

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Originally Posted by Analyst

They have bitten off more than they can chew.

It is highly unlikely that this en bloc can proceed, unless these developers are bought over by one of the big guys. Otherwise, they will just wind up and the en bloc deal becomes effectively dead.

On the whole, this will be a good wake up call for the market. Will make everyone, buyers and sellers more realistic, and also prevent over and unjustified exuberance. May also stave off Govt action (should the sub prime thing blow over).

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Yup, simple .

Quote:

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Originally Posted by mr funny

April 1, 2008

Two en bloc sales delayed; developer asks for more time

Bravo's deals involve Tulip Garden for $516m and Pender Court for $80m

By Joyce Teo


A SMALL property firm that snapped up enough sites to place it among the top en bloc players last year has put off completing two deals while it ties up funding.

Because of the delays, owners at one condo are still waiting to pick up cheques for well over $1 million each. They expected payment in late February but an extension put this back to March and now the due date is late this month.

The payments are pending from Bravo Building Construction, a relatively new firm on the property scene. It bought freehold Pender Court condominium in the Telok Blangah area for $80 million last July and soon after purchased Tulip Garden near Holland Road - also freehold - for $516 million.

But completion of both deals seems to have stalled.

Completion is at the final stage of the sale process and triggers the final payment - usually around 95 per cent of the purchase price - to owners. The remaining 5 per cent is paid when the owner vacates.

These headaches for the owners come amid a slowing market for collective sales. The first quarter this year saw just one relatively small deal, compared with some 25 notched up in the same period last year.

The Tulip Garden transaction is expected to be completed late next month but Bravo has already asked for two postponements - first to July 23 and then Aug 7.

It has also asked for extensions to pay an additional 5 per cent of the purchase price - $25.8 million.

This is a routine payment required once the Strata Titles Board approves a sale. An initial 5 per cent deposit was paid when the sale was done.

The deadline for the second 5 per cent payment was March 13 but Bravo won approval to move it to April 7. Then in mid-March, it again asked to move the date, this time to May 5.

However, before the sale committee could respond to the request, it is understood that Bravo asked again to have the date moved even further back, to June 7.

Tulip Garden sold for about $1,018 per sq ft. It has 164 units comprising 96 flats, 66 maisonettes and two shophouses. Flat owners stand to reap $2.5 million to $4.2 million while maisonette owners will receive about $3.4 million each. The shop units will get about $1.1 million each.

The owners are meeting this weekend to consider Bravo's requests that the completion date be pushed back to Aug 7 and the deadline for the $25.8 million payment be extended to June 7.

The Pender Court deal is even further behind schedule.

Bravo was supposed to have completed the sale on Feb 25 but had it postponed, initially to around mid-March. It then asked for a further extension to April 24, which has apparently been granted.

Pender Court's 48 owners should each get $1.6 million or so for their flats, which sold for about $872 psf.

Sources have told The Straits Times that they understand Bravo is committed to completing the two purchases and just needs more time to arrange funding.

Bravo, which was registered in 2002, reportedly picked up $824.5 million worth of en bloc sale deals last year, making it the fourth-largest buyer of en bloc sites.

Bravo's directors could not be reached for comment, despite numerous telephone calls and a visit to its office in an industrial building in Geylang Road last Friday. A Bravo staff member said that the company directors were away on business.

[email protected]

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What choice do the residents have at this point? I suspect no other developer would dare to commit to buy more land from enbloc sale?

To begin with, many were shocked that this project could fetch such high prices given the location.

Quote:

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Originally Posted by Unregistered

What choice do the residents have at this point? I suspect no other developer would dare to commit to buy more land from enbloc sale?

To begin with, many were shocked that this project could fetch such high prices given the location.

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LET ENBLOC REST IN PEACE.

Just a thought, was enbloc intended only for the renewal of the downtown area to make it more modern, more swanky? Then it caught on like wildfire by the rest hoping to make quick bucks? Traditionally high class apartments started in the city for the rich. Was Pandan Valley the first condo in Singapore?

with the high development cost, it is unwise to buy en boc site at such a high price. There is a big price gap between the new property launch and completed resale property. New property launch are prcing at a future price. Serious buyer would rather pay a more reasonable price at the resale market.

Successful enbloc. The vote was unanimous. The Wisma Atria fishes are moving to Underwater World.

Quote:

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Originally Posted by Unregistered

Just a thought, was enbloc intended only for the renewal of the downtown area to make it more modern, more swanky? Then it caught on like wildfire by the rest hoping to make quick bucks? Traditionally high class apartments started in the city for the rich. Was Pandan Valley the first condo in Singapore?

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First condo in Singapore would be Beverly Mai (built in 1974), and also one of the first to go enbloc. Pandan Valley was 1979.

I don't think we'll ever know the real rationale for the enbloc policy coming into place, although one of the reasons may well be targeted urban renewal for central areas. But even the government must have the foresight to realise that the law is equally applicable elsewhere, not just in the prime districts.

After all, a key driver for enblocs is, really, the plot ratios in the Master Plan. If the land that the condo is sitting on does not have a higher plot ratio, no developer would be keen to buy and redevelop it. When it comes to residential land, plot ratios for downtown areas, I believe, are increasing at about the same rate as elsewhere.

Quote:

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Originally Posted by Unregistered

Successful enbloc. The vote was unanimous. The Wisma Atria fishes are moving to Underwater World.

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But is that a downgrade or an upgrade? The STB needs to decide:

1. Whether the Wisma fishes are suffering from fishfood losses.
2. Whether the enbloc was done with good bait.
3. Whether there is any relationship between the Wisma fishes and the Underwater World fishes.

No 3 could get messy.

In my opinion, I think that the whole en-bloc mass is partly contributed by the government not knowing exactly what its objective is supposed to be.

I think it started out as an incentive to encourage old developements to go through the process of auto-renewal, by changing the laws such that majority owner consent (80 - 90%) will be sufficient to push through the colective sales.

Then, at certain point, the government decided that is should have its fair share of spoils, by repeatedly increasing the DC and the computation method. To me, it seems to run counter against the initial objective.

Then, the government was also caught off-guard by a series of high profile objections by minority owners. Rules were not changed promptly enough to address such issues. For example, STB are still presided by non-judges, who are always trying to get guidance from other high court cases.

Even without the sub-prime problem, enbloc became increasing unattractive to developers considering the potential uncertainty they are subjecting themselves to.

It all boils down to government not having a clear vision of what it wishes to achieve. (This is my personal opinion only. I am generally not anti-government but this is my personal interpretation of the general state of affairs of en-bloc.)

Quote:

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Originally Posted by Unregistered

Just a thought, was enbloc intended only for the renewal of the downtown area to make it more modern, more swanky? Then it caught on like wildfire by the rest hoping to make quick bucks? Traditionally high class apartments started in the city for the rich. Was Pandan Valley the first condo in Singapore?

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Quote:

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Originally Posted by Unregistered

In my opinion, I think that the whole en-bloc mass is partly contributed by the government not knowing exactly what its objective is supposed to be.

I think it started out as an incentive to encourage old developements to go through the process of auto-renewal, by changing the laws such that majority owner consent (80 - 90%) will be sufficient to push through the colective sales.

Then, at certain point, the government decided that is should have its fair share of spoils, by repeatedly increasing the DC and the computation method. To me, it seems to run counter against the initial objective.

Then, the government was also caught off-guard by a series of high profile objections by minority owners. Rules were not changed promptly enough to address such issues. For example, STB are still presided by non-judges, who are always trying to get guidance from other high court cases.

Even without the sub-prime problem, enbloc became increasing unattractive to developers considering the potential uncertainty they are subjecting themselves to.

It all boils down to government not having a clear vision of what it wishes to achieve. (This is my personal opinion only. I am generally not anti-government but this is my personal interpretation of the general state of affairs of en-bloc.)

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It all boils down to one thing. +++GREED+++

Quote:

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Originally Posted by Unregistered

It all boils down to government not having a clear vision of what it wishes to achieve. (This is my personal opinion only. I am generally not anti-government but this is my personal interpretation of the general state of affairs of en-bloc.)

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Too many trial and error experiments.

Quote:

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Originally Posted by Unregistered

Too many trial and error experiments.

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Government just set up the stage, ppls act on the stage, greedy ppls fight on stage.

People are not entirely to be blamed. Press sensationalising as well. Nothing wrong with wanting to sell your property for a good prce. It is always like that, owners no intention to sell, then people come to cajole, sweet-talk, owners will set a ridiculously high price, can get, will sell. They fail to realise that they are actually setting a benchmark for themselves. Truly, what goes around comes around.

In the process innocent bystanders get hurt, like, unnecessarily high inflation.

Quote:

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Originally Posted by mr funny

April 1, 2008

Two en bloc sales delayed; developer asks for more time

Bravo's deals involve Tulip Garden for $516m and Pender Court for $80m

By Joyce Teo


A SMALL property firm that snapped up enough sites to place it among the top en bloc players last year has put off completing two deals while it ties up funding.

Because of the delays, owners at one condo are still waiting to pick up cheques for well over $1 million each. They expected payment in late February but an extension put this back to March and now the due date is late this month.

The payments are pending from Bravo Building Construction, a relatively new firm on the property scene. It bought freehold Pender Court condominium in the Telok Blangah area for $80 million last July and soon after purchased Tulip Garden near Holland Road - also freehold - for $516 million.

But completion of both deals seems to have stalled.

Completion is at the final stage of the sale process and triggers the final payment - usually around 95 per cent of the purchase price - to owners. The remaining 5 per cent is paid when the owner vacates.

These headaches for the owners come amid a slowing market for collective sales. The first quarter this year saw just one relatively small deal, compared with some 25 notched up in the same period last year.

The Tulip Garden transaction is expected to be completed late next month but Bravo has already asked for two postponements - first to July 23 and then Aug 7.

It has also asked for extensions to pay an additional 5 per cent of the purchase price - $25.8 million.

This is a routine payment required once the Strata Titles Board approves a sale. An initial 5 per cent deposit was paid when the sale was done.

The deadline for the second 5 per cent payment was March 13 but Bravo won approval to move it to April 7. Then in mid-March, it again asked to move the date, this time to May 5.

However, before the sale committee could respond to the request, it is understood that Bravo asked again to have the date moved even further back, to June 7.

Tulip Garden sold for about $1,018 per sq ft. It has 164 units comprising 96 flats, 66 maisonettes and two shophouses. Flat owners stand to reap $2.5 million to $4.2 million while maisonette owners will receive about $3.4 million each. The shop units will get about $1.1 million each.

The owners are meeting this weekend to consider Bravo's requests that the completion date be pushed back to Aug 7 and the deadline for the $25.8 million payment be extended to June 7.

The Pender Court deal is even further behind schedule.

Bravo was supposed to have completed the sale on Feb 25 but had it postponed, initially to around mid-March. It then asked for a further extension to April 24, which has apparently been granted.

Pender Court's 48 owners should each get $1.6 million or so for their flats, which sold for about $872 psf.

Sources have told The Straits Times that they understand Bravo is committed to completing the two purchases and just needs more time to arrange funding.

Bravo, which was registered in 2002, reportedly picked up $824.5 million worth of en bloc sale deals last year, making it the fourth-largest buyer of en bloc sites.

Bravo's directors could not be reached for comment, despite numerous telephone calls and a visit to its office in an industrial building in Geylang Road last Friday. A Bravo staff member said that the company directors were away on business.

[email protected]

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Happened to see this at condohub.com, posted in May 2007, seems that this person can predict the future:


Booming en-bloc market set for downturn
May 14th, 2007
The property market in Singapore has seen a significant upturn in recent months, led first by the high end private property market, and subsequently followed by en-bloc fever, where owners of developments large and small, from east to west, have banded together to sell their properties for burgeoning, even inflated prices. Just how far will it go ?

There is no doubt that high end property prices in Singapore have quite a bit of room to grow. But sadly, these areas are limited, and the growth will be slow.

The booming en-bloc market will stop. Whether it will end with a slow u-turn or a crash is not certain, but it will end when property developers realise that it just does not make sense to pay excessive prices for en-bloc land parcels, or when land developers fork out these amounts, and subsequently crash because of the losses the suffer when their projects fail.

It’s not all bad news, though. En-bloc owners who make their fortune now could rent a place, and snap up property, maybe even two units, when the property market slides. If you’re not in a hurry to buy, we say, wait and see.

But till then, owners have it good. It’ll last a while, but if we at condohub had to put a date on the downturn, it’ll be sometime end 2008 or early 2009. Remember, you heard it here first.

Posted in Property News | No Comments »

Quote:

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Originally Posted by Unregistered

Happened to see this at condohub.com, posted in May 2007, seems that this person can predict the future:


Booming en-bloc market set for downturn
May 14th, 2007
The property market in Singapore has seen a significant upturn in recent months, led first by the high end private property market, and subsequently followed by en-bloc fever, where owners of developments large and small, from east to west, have banded together to sell their properties for burgeoning, even inflated prices. Just how far will it go ?

There is no doubt that high end property prices in Singapore have quite a bit of room to grow. But sadly, these areas are limited, and the growth will be slow.

The booming en-bloc market will stop. Whether it will end with a slow u-turn or a crash is not certain, but it will end when property developers realise that it just does not make sense to pay excessive prices for en-bloc land parcels, or when land developers fork out these amounts, and subsequently crash because of the losses the suffer when their projects fail.

It’s not all bad news, though. En-bloc owners who make their fortune now could rent a place, and snap up property, maybe even two units, when the property market slides. If you’re not in a hurry to buy, we say, wait and see.

But till then, owners have it good. It’ll last a while, but if we at condohub had to put a date on the downturn, it’ll be sometime end 2008 or early 2009. Remember, you heard it here first.

Posted in Property News | No Comments »

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I will predict mid 2008....

I wonder how many en bloc deals are there out there that resident have not been paid yet. For those 2nd or 3rd tier developers like Bravo..well they can forget about financing those deals if the bank hasn't passed them the money. The credit market has dried up completely that no bank will fund a lesser known developer under present conditions. Thus we can probably expect more such en bloc deals to go sour at the last hurdle as these smaller developers cannot fund their purchases.

Quote:

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Originally Posted by Boon

I wonder how many en bloc deals are there out there that resident have not been paid yet. For those 2nd or 3rd tier developers like Bravo..well they can forget about financing those deals if the bank hasn't passed them the money. The credit market has dried up completely that no bank will fund a lesser known developer under present conditions. Thus we can probably expect more such en bloc deals to go sour at the last hurdle as these smaller developers cannot fund their purchases.

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True. give them 50% discount to complete the purchase also got problem.
Not developer fault, it is credit crunch fault.................

Market overpriced.