This year's first en bloc sale hits the market
http://www.businesstimes.com.sg/sub/...41793,00.html?
Published July 15, 2009
This year's first en bloc sale hits the market
Owners of 72-unit freehold property on Spottiswoode Park Road are hoping for $120m
By UMA SHANKARI
(SINGAPORE) Dragon Mansion on Spottiswoode Park Road has been put up for collective sale - the first development to be launched for en bloc sale this year.
The owners are hoping for $120 million - or $1,020 per square foot per plot ratio (psf ppr) - for the freehold project, including a development charge of about $400,000.
The en bloc market here has shown little sign of life since the onslaught of the global economic crisis. A total of 116 collective sales were completed at the height of the property boom in 2007, but the figure fell sharply to just eight last year. And no sites have been bought en bloc since the start of the year.
Analysts said that the owners of the 72-unit Dragon Mansion could have chosen to market their property now to ride on the current upswing in sentiment in the residential market.
'As the outlook for the residential property market improves, land values will rise and sellers might find it viable to sell collectively to get a premium for their properties,' said Karamjit Singh, managing director of Credo Real Estate.
If the sale of Dragon Mansion goes through, it will be the first property to be sold en bloc in 2009. However, market watchers said that the asking price is steep.
For comparison, said one market watcher, one can look at the June 2007 collective sale of nearby Oakswood Heights on Spottiswoode Park Road at the peak of the property boom. Then, UOL paid $132 million for the 63,700-sq-ft freehold site, which worked out to $740 per psf ppr.
Dragon Mansion has a land area of 41,874 sq ft and is designated for residential use with a plot ratio of 2.8. The new development could potentially yield a maximum gross floor area of 117,000 sq ft, which translates to an estimated 120 units of 1,000 sq ft each, said CKS Property Consultants, which is marketing the property.
Consent has been obtained from more than 80 per cent of the owners to proceed with the sale. The asking price is based on the 'limited availability of such freehold residential land near the central business district'.
More projects could be launched for collective sale in the rest of the year, analysts said.
Credo's Mr Singh said that owners of some projects are now checking to see if it is the right time to launch a collective sale: 'They don't want to start too early. They are hoping to time it right.'
En bloc transactions may return in a significant fashion when the unsold supply pipeline falls, said Credit Suisse in a June 19 note. This comes about as developers deplete their existing land banks and need to replenish them.
'On a current run rate of 1,200 developer units sold per month, land bank replenishment may happen in the next three months,' said Credit Suisse property analyst Tricia Song.
In 2006 and 2007, demolitions created an artificial vacuum in supply due to 'en bloc fever', resulting in a steep hike in rents and prices amid a population boom. In addition, owners of older properties with higher redevelopment density ratios get more on a per unit space basis, creating a wealth effect in the property market.
However, the caveat emptor this time could be oversupply of prime housing from previous years. Nevertheless, the trend bodes well for land prices and real estate owners, Ms Song added.
Tender for collective sale of Dragon Mansion launched
http://www.channelnewsasia.com/stori...442249/1/.html
Tender for collective sale of Dragon Mansion launched
By May Wong, Channel NewsAsia | Posted: 14 July 2009 1557 hrs
SINGAPORE: The tender for the collective sale of Dragon Mansion has been launched, the first such sale this year.
The property is located at 18 Spottiswoode Park Road.
In a statement, CKS Property Consultants said it has obtained consent from more than 80 per cent of the owners to proceed with the sale.
The collective sale is expected to achieve in excess of S$120 million or S$1,020 per square foot per plot ratio. This includes the development charge of about S$400,000.
The redevelopment site has a land area of about 42,000 square feet and it is designated for residential use with a plot ratio of 2.8.
CKS Property Consultants said the new development could potentially build up to 36 storeys, accommodating some 120 units of 1,000-square foot apartments.
The tender will close on August 11 at 3pm. - CNA/vm
This could be the turning point.
In every cycle, there is a significant transaction that marked a turning point for the market. In the last cycle, everybody woke up when capitaland paid a record $1k psf for orchard residence. This is followed by a revision and reflexion in property value. Can this be the one in this cycle?
Roxy-Pacific to buy Dragon Mansion in en bloc deal
http://www.businesstimes.com.sg/sub/...55140,00.html?
Published October 21, 2009
PROPERTY
Roxy-Pacific to buy Dragon Mansion in en bloc deal
By UMA SHANKARI
ROXY-PACIFIC Holdings has signed an agreement to buy Dragon Mansion for $100.8 million via a collective sale - some 16 per cent below the owners' previous asking price of $120 million when the property was first put up for sale in July.
However, the deal is conditional upon obtaining agreement from an 80 per cent majority of the owners on the purchase price. BT understands that a fresh round of agreements have to be obtained as the price offered by Roxy-Pacific is below the owners' reserve price in the collective sale agreement.
When the tender for the collective sale of Dragon Mansion was launched in July, it marked the first collective sale offering of the year. If Roxy-Pacific buys the freehold site for $100.8 million, it will be paying $863 per square foot per plot ratio (psf ppr) including an estimated development charge of about $400,000. The owners' original asking price, on the other hand, translated to about $1,020 psf ppr including the development charge.
The site has a land area of about 42,000 sq ft and it is designated for residential use with a plot ratio of 2.8.
Roxy-Pacific chief executive Teo Hong Lim said that the company inked the deal to buy the site as he 'found the price reasonable'.
The developer, which was listed on the Singapore Exchange (SGX) in 2008, is looking to replenish its land bank after launching a number of projects over the past year. It recently acquired two freehold sites - one at Joo Chiat Place and the other at Tembeling Road. Said Mr Teo: 'We are constantly on the lookout for new sites, but the price and location have to be right.'
The company took part in recent government tenders for the sale of state land, but it was 'too competitive', Mr Teo said. Recent tenders for government residential land sites have drawn 12-15 bids each.
The acquisition will be fully funded through proceeds from the company's initial public offering (IPO), internal funds and/or bank borrowings, Roxy-Pacific said in a statement. The acquisition is not expected to have any material effect on the net tangible assets per share or earnings per share of the company for the current financial year.
Dragon Mansion en bloc sale sees lower offer
http://www.straitstimes.com/Money/St...ry_444605.html
October 21, 2009 Wednesday
Dragon Mansion en bloc sale sees lower offer
Roxy-Pacific's $101m offer is below the $120m that owners are asking
By Joyce Teo
THE first significant collective sale in Singapore this year is on the cards - if the condominium's owners will agree to a price that is lower than what they are hoping to achieve.
Boutique developer Roxy-Pacific has agreed to acquire a site at Spottiswoode Park, but at a price that is below the estate's original reserve price.
In an announcement to the Singapore Exchange yesterday, the developer said it has offered to buy the freehold condominium site of Dragon Mansion for $100.8 million, or $860 per sq ft (psf) per plot ratio.
The asking price for the site, with land of about 3,890 sq m and a maximum plot ratio of 2.8, is $120 million, or $1,020 psf per plot ratio. As the price is below the reserve, a fresh set of signatures is needed, so the deal is subject to obtaining the consent of at least 80 per cent of the owners. After that, a sale order from the Strata Titles Board may be necessary, said a Roxy-Pacific statement.
When Dragon Mansion became the first en bloc site to be launched for sale in July this year, market watchers said the asking price was more suitable to the boom times.
They said developers might not be prepared yet to pay at that level. The price of $1,020 psf per plot ratio is significantly higher than the transacted collective sale prices in the area during the 2007 boom.
Even at $860 psf per plot ratio, it is still above the area's boom-time prices, said Ngee Ann Polytechnic lecturer Nicholas Mak. The break-even price is about $1,300 to $1,400 psf, he added.
Yesterday, CKS Property Consultants, the site's marketing agent, would only say it was working towards closing the deal.
A few collective sale sites have been launched since Dragon Mansion came on the market, but there have been no sales yet. Last week, the collective sale tender for the 528-unit Laguna Park closed unsuccessfully. It had two offers, but neither bore fruit. Its reserve price of $1.2 billion works out to $844 psf per plot ratio.
Roxy-Pacific said the purchase would be fully funded through its initial public offering proceeds, internal funds and/or bank borrowings.
Its managing director Chris Teo said the company needs to replenish its landbank. If Roxy-Pacific manages to close a deal, Dragon Mansion will be its third land site. The other two sites were acquired just last month. One is a 910.8 sq m freehold site in Tembeling Road, while the other is a freehold site of 1,055.5 sq m in Joo Chiat Place.
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