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Thread: Eunosville seeks $688m in collective sale bid

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    Default Eunosville seeks $688m in collective sale bid

    http://www.straitstimes.com/archive/...e-bid-20130619

    Eunosville seeks $688m in collective sale bid

    Ex-HUDC estate in Sims Avenue makes maiden attempt to go en bloc

    Published on Jun 19, 2013

    By Cheryl Ong


    SINGAPORE'S collective sale market is showing signs of taking off again with two sales this week and now a bid to sell a former HUDC estate in Eunos for $688 million.

    If successful, this would be the largest collective sale in six years.

    The 330-unit Eunosville, in Sims Avenue, which was privatised in 2011, is making its maiden attempt at a collective sale.

    The asking price works out to a unit price of $799 per sq ft (psf) per plot ratio (ppr).

    This is after taking into account $155 million payable to the Government to top up the lease from about 74.5 years to 99 years, and for intensification of the site's use, said marketing agent Jones Lang LaSalle (JLL).

    This week, two smaller collective sales have gone through. Developer Tuan Sing bought Gilstead Court in the exclusive Novena-Newton area for $150.2 million and Yi Mei Garden in Tampines Road was sold to Roxy-Pacific Holdings for $136 million.

    Another large collective sale, of Thomson View to Wee Hur Holdings for $590 million, inked in September last year, has now hit a legal snag.

    Mr Karamjit Singh, head of investments and residential at JLL, said the required 80 per cent of owners at Eunosville had given their consent to the collective sale this month, leading the sales committee to launch the tender now.

    Over the past six years, other privatised HUDC estates that have been sold en bloc include Gillman Heights, at $548 million, Waterfront View, at $385 million, Minton Rise, at $342 million, and Amberville, at $183 million. Eunosville may be shaping up as a large collective sale but it falls short of 618-unit Farrer Court, sold for $1.34 billion in 2007.

    "It is not often that a privatised HUDC estate is launched for collective sale, largely due to the sheer size of such estates," said Mr Tan Hong Boon, JLL's regional director of investments. He said only eight such estates had been launched for sale en bloc since 2006, of which five had sold.

    However, Mr Singh added that developers will be keen on the site as the total investment for Eunosville is under $1 billion, while the absolute land value of most similar projects tends to be higher.

    Mr Tan said developers have the option of dividing the plot into two or more parcels, and can expect to sell units for about $1,450 psf to $1,650 psf, based on an estimated break-even price of $1,200 psf. Home owners of Eunosville can expect to receive sales proceeds of more than $2 million each, based on the asking price.

    The 376,712 sq ft plot has been earmarked for residential use, and can yield about 1,000 units averaging 1,100 sq ft each, said JLL.

    The development consists of four low-rise blocks, each four storeys high. It also has two nine- storey blocks, two 11-storey blocks and two 13-storey blocks. Located opposite Eunos MRT station, Eunosville is one stop away from the upcoming Paya Lebar Commercial Hub. It was built in the late 1980s by the HUDC.

    Mr Singh said the prospects for collective sale properties depend on location and other factors.

    He said: "It's an en bloc market where when there are good-value, well-priced and well-located properties, there will be ample takers for it. Where en bloc (sites) are priced unrealistically or don't have key attributes, they may struggle to find buyers."

    The tender for Eunosville closes on July 24.

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    Default Eunosville up for collective sale at a reserve price of $688m

    http://www.businesstimes.com.sg/arch...-688m-20130619

    Published June 19, 2013

    Eunosville up for collective sale at a reserve price of $688m

    Tender exercise for the 376,712 sq ft ex-HUDC estate closes on July 24


    IF the collective sale of Eunosville is successful, it will give a big boost to this year's tally of en bloc sales.

    The minimum price set for Eunosville, located opposite Eunos MRT Station, by its owners is $688 million. This translates to $799 per square foot of potential gross floor area inclusive of an estimated sum of $155 million payable to the state to top up the site's lease from a balance term of around 74.5 years to 99 years and for intensifying the site's use, subject to approvals from the relevant authorities.

    Eunosville has a land area of 376,712 square feet. Under Master Plan 2008, the site is zoned for residential use with a 2.8 plot ratio (ratio of maximum gross floor area to land area).

    Built in the late 1980s by the former Housing and Urban Development Company (HUDC), Eunosville was privatised in 2011.

    If sold, "Eunosville stands to be the second largest ex-HUDC estate sold collectively in absolute price terms, as well as the largest en bloc sale in six years", said Jones Lang LaSalle (JLL). The property consulting group is marketing Eunosville's collective sale through a tender exercise that closes on July 24.

    So far this year, eight collective sale transactions totalling $717 million have been inked, including the $150.168 million sale of Gilstead Court to Tuan Sing announced on Monday night.

    This compares with 26 deals worth just over $2 billion last year and 51 transactions amounting to $3.2 billion in 2011. During the peak year of 2007, 87 collective sales were transacted for $11.6 billion, according to JLL. Its figures include all collective sales including those involving non-residential properties.

    In its filing with Singapore Exchange on Monday, Tuan Sing said that its fully owned unit Dillenia Land has been awarded the tender for Gilstead Court at $150.168 million. The sale is subject to approval from the Strata Titles Board.

    The price Tuan Sing has agreed to pay works out to $1,421 per square foot per plot ratio (psf ppr). Assuming the group taps the maximum 10 per cent bonus gross floor area, its unit land price translates to a lower $1,292 psf ppr and for which no development charge is payable.

    Gilstead Court has a freehold land area of 75,479 square feet. Under Master Plan 2008, the site is zoned for residential use with a 1.4 plot ratio.

    As for Eunosville, JLL said that the site can potentially yield a new project with about 1,000 units averaging 1,100 square feet.

    Based on the reserve price of $688 million or $799 psf ppr, the breakeven cost for a new project is about $1,200 psf, with the new units expected to fetch between $1,450 psf and $1,650 psf, JLL estimates.

    "Sales of new residential units at Urban Vista, close to the Tanah Merah MRT Station, three MRT stops further east, are already at about $1,480 psf on average based on URA data so far," notes Tan Hong Boon, regional director of investments at JLL.

    "It is not often that a privatised HUDC estate is launched for collective sale, largely due to the sheer size of such estates. Only eight such estates have been launched . . . since 2006, out of which five have been successfully sold, with the largest being Farrer Court's 618 units which was sold for $1.3388 billion in 2007."

    Owners of Eunosville's 330 units can look forward to gross sales proceeds of more than $2 million per unit, based on the $688 million minimum price. Owners controlling more than 80 per cent of share value and strata floor area in the development have consented to the collective sale.

  3. #3
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    gov is very very kind to allow it to be privatised two years ago.

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    Quote Originally Posted by leesg123
    gov is very very kind to allow it to be privatised two years ago.
    Government makes money from the privatization too. And if redeveloped, more money will be made.

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    anyone thinks this will be successful? I understand there are many failed HUDC enblocs

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    So developers are allowed to split the site into several plots?
    "Never argue with an idiot, or he will drag you down to his level and beat you with experience."

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    Quote Originally Posted by VS
    Government makes money from the privatization too. And if redeveloped, more money will be made.
    Gov could make even more money by 'chasing' them away and sell the land direct to developers.

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    Quote Originally Posted by price
    anyone thinks this will be successful? I understand there are many failed HUDC enblocs
    Successful ones are

    Farrer Court
    The Minton
    The Amberville (The SilverSea)
    Guillman height
    Bedok Resovior

    failed one :
    Laguna Park
    Tampines Court (this one got good offer, but failed on technical ground on problems with the Sales Com)
    Chancery Court : Not sure whether they gotten the 80%

    Unlikely to get 80% or having technical problems
    Neptune court : not fully privatised
    Bradell Height : technical problem, take longer time
    Normation park : Not too sure whether any problem.

    too big or too little premium :
    Lakeview : fully built up, premium over market is too low
    Lagoon View : unlikely due to profile of owners
    Bradell, Laguna Park : too big
    Chancery court : too little premium


    What left can be go for enbloc :
    Shenfu
    Eunosville

    So there are not so many left...
    Not sure what I have missed...

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    Quote Originally Posted by Laguna
    So there are not so many left...
    Not sure what I have missed...

    Interesting review.

    What about Pine Grove?

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    Quote Originally Posted by BlackKnight
    Interesting review.

    What about Pine Grove?
    Ya overlooked Pine Grove.
    If remember correctly, it was in the market without finding a buyer.
    Same problem like Laguna Park, too big especially now the developer must sell all within 5 years. Risk to developer is too high.
    The premium asked by SP was high.
    Total quantum is very big.

    Forgot to mention, both Shenfu and Eunos Ville are of very short walking distance to MRT.
    Last edited by Laguna; 21-06-13 at 23:34.

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    Still have Hougang N3, N7, Serangoon north , potong pasirnHUDC sites

    Most HUDC sites have quite good location, or views...
    Many near landed property sites. Eg Shunfu, hougang N7, farrer court...

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    If one were to take a 10-15 yr timeline as investment horizon, these privatized HUDC may be a good buy for own stay till enbloc. Possible Eg.
    Buy at $700-800 psf. Own stay for 15 years, if enbloc for $1200 psf ppr means easily approx. 1500sqft x $400 psf x (any gain in GPR) = $1M. Does this sound like a mil $ plan?

    Quote Originally Posted by Laguna
    Successful ones are

    Farrer Court
    The Minton
    The Amberville (The SilverSea)
    Guillman height
    Bedok Resovior

    failed one :
    Laguna Park
    Tampines Court (this one got good offer, but failed on technical ground on problems with the Sales Com)
    Chancery Court : Not sure whether they gotten the 80%

    Unlikely to get 80% or having technical problems
    Neptune court : not fully privatised
    Bradell Height : technical problem, take longer time
    Normation park : Not too sure whether any problem.

    too big or too little premium :
    Lakeview : fully built up, premium over market is too low
    Lagoon View : unlikely due to profile of owners
    Bradell, Laguna Park : too big
    Chancery court : too little premium


    What left can be go for enbloc :
    Shenfu
    Eunosville

    So there are not so many left...
    Not sure what I have missed...

  13. #13
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    Quote Originally Posted by Laguna
    Successful ones are

    Farrer Court
    The Minton
    The Amberville (The SilverSea)
    Guillman height
    Bedok Resovior

    failed one :
    Laguna Park
    Tampines Court (this one got good offer, but failed on technical ground on problems with the Sales Com)
    Chancery Court : Not sure whether they gotten the 80%

    Unlikely to get 80% or having technical problems
    Neptune court : not fully privatised
    Bradell Height : technical problem, take longer time
    Normation park : Not too sure whether any problem.

    too big or too little premium :
    Lakeview : fully built up, premium over market is too low
    Lagoon View : unlikely due to profile of owners
    Bradell, Laguna Park : too big
    Chancery court : too little premium


    What left can be go for enbloc :
    Shenfu
    Eunosville

    So there are not so many left...
    Not sure what I have missed...
    thanks for the summary! hope yours will fetch a good price!

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    Default Thomson View or Eunosville is better?

    Which site location is better, Thomson View or Eunosville?

    Thomson View was transacted at $712 psf-ppr whereas Eunosville is offering reserve price at $799 psf-ppr.

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    Quote Originally Posted by victorcpwong
    Which site location is better, Thomson View or Eunosville?

    Thomson View was transacted at $712 psf-ppr whereas Eunosville is offering reserve price at $799 psf-ppr.
    Bad timing for this project. Thomson is better anytime and Eunos feels like Geylang. I know some owners are asking more but I feel at this price is already a hard sell.

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    Quote Originally Posted by pmet
    Bad timing for this project. Thomson is better anytime and Eunos feels like Geylang. I know some owners are asking more but I feel at this price is already a hard sell.
    Eunos is not same class as Geylang. Thomson may have its charm and tranquility but I think in terms of number of enblocs, G has more successful bidders historically. With the Thomson view saga, though no fault of the owners, Will not be easy going forward. I predict the Eunos will complete first being all similar in sizes for all owners.

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    The marketing agent engaged by Eunos will not do such under table business.

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    Quote Originally Posted by Laguna
    The marketing agent engaged by Eunos will not do such under table business.
    Can you clarify what under table business?

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    Ivory heights?
    Yee ha! Did I tickle your funny bone?


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    Any updates on this enbloc?

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    Quote Originally Posted by VS
    Any updates on this enbloc?
    Closing extended by 4 weeks

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    Yah, developer requesting for more time in light of the TDSR. Closing 20th August.

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    Enbloc failed

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    Quote Originally Posted by pmet
    Enbloc failed
    TDSR really starting to put on the brakes in the property market.

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    Quote Originally Posted by xebay11
    TDSR really starting to put on the brakes in the property market.
    True, and I think the timing can't be worse. Just when there are talks about QE tapering.

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    the issue with enbloc is like the thomson view case, a group of owners can scupper the deal after majority votes have been obtained. i think developers rather pay more to buy land from ura so that they can quickly build the showroom and sell.

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    Quote Originally Posted by pmet
    Enbloc failed

    Poor owners dreaming of 2million dollars dream shattered
    In the final analysis.....its NOT whether you have a diploma,degree,masters OR PHD....its whether you have a HDB/PC/EC or LANDED...

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