Phoenix Heights sold en bloc for S$33.1m

Wed, Aug 22, 2018

PHOENIX Heights condominium in Bukit Panjang has been sold en bloc, in a S$33.1 million deal that defies last month's property cooling measures.

The bid from USB Holdings - which is owned equally by units of OKP Holdings, Chye Joo Construction, Hwa Seng Group and Ho Lee Group - was accepted on Monday, mainboard-listed OKP announced the next day.

USB plans to redevelop the leasehold property, which was built in 1969 and is zoned for residential use, and will apply for a fresh 99-year lease.

The 32-unit Phoenix Heights has a site area of 3,971.9 square metres (42,750 sq ft), with a maximum allowable gross floor area of 5,560.66 sq m and a gross plot ratio of 1.4. The land can be developed for up to five storeys.

ERA Realty senior division director Anna Tan, who oversaw the sale, told The Business Times: "The deal was closed after the new measures, so it was quite a surprise."

OKP, which has a 25 per cent stake in USB, said that the tender price took into account prevailing market conditions and the market prices of properties in the surrounding area.

The group will fund its share of the purchase through internal resources and/or bank borrowings, it said, adding that the acquisition is not expected to have a material impact on the earnings per share or net tangible assets per share for the year to Dec 31.

OKP closed up by half a Singapore cent, or 2.27 per cent, to S$0.225, before the announcement.