La Ville sold for S$152 million in third bid at collective sale

Dec 01, 2021

THIRD time is the charm for freehold development La Ville which was sold via collective sale on its third attempt to Hong Kong-listed ZACD Group for S$152 million - above its reserve price.

The high-rise development, which is situated along Tanjong Rhu in District 15, was put up for sale in October this year for S$148 million, but finally went for higher following strong competition among bidders.

A previous attempt took place in May 2018 when a tender was launched at an asking price of S$152 million, but talks with interested parties during the private treaty period were shelved after the July 2018 cooling measures were rolled out.

Tan Hong Boon, executive director at JLL, highlighted that the freehold site saw very keen interest thanks to its sought-after address. JLL is the sole marketing agent for the sale.

Tan said: "The winning bid of S$152 million translates to a land rate of approximately S$1,540 per square feet per plot ratio (psf ppr). Factoring in an additional 7 per cent bonus gross floor area and the corresponding development charge, the unit land rate will be about S$1,477 psf ppr. At this sale price, the owners would expect to receive gross sales proceeds between S$3 and S$5.9 million per unit."

Built in the 1980s, 40-unit La Ville has a land area of around 47,012 square feet (sq ft) and is zoned "residential" with an allowable gross plot ratio (GPR) of 2.1 under the Urban Redevelopment Authority's 2019 Master Plan.

The development is about 250 metres from the upcoming Katong Park MRT Station on the Thomson-East Coast (TEL) line, while the Central Business District is a 10-minute drive via the East Coast Parkway.

La Ville is close to malls such as Kallang Wave Mall and Parkway Parade, the Singapore Sports Hub, Marina Bay Golf Course, as well as Singapore Swimming Club. Schools in the area include Dunman High, Cheung Cheng High, Kong Hwa Primary, Canadian International School (Tanjong Katong) and Chatsworth International School (East).

Owners representing over 80 per cent, by total share value and by total floor area, have consented and executed the collective sale agreement.

Johnny Cheung, the chairman of the collective sale committee for this, as well as past attempts, said: "Indeed, in the last cycle in 2018, JLL brought in an acceptable offer meeting our then reserve price via private treaty on the eve of the announcement of the July 2018 residential marketing cooling measures, only to be tempered before the start of our negotiation process."

He added: "I could understand the disappointment of our fellow owners for the near miss."