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Thread: Chuan Park sold for S$890m, below reserve price

  1. #1
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    Default Chuan Park sold for S$890m, below reserve price

    Chuan Park sold for S$890m, below reserve price

    Jul 18, 2022

    CHUAN Park has finally been sold via private treaty for S$890 million, after the tender for its collective sale closed on Apr 26 without bids.

    A source told The Business Times (BT) that the buyer is a developer that “recently finished a huge residential project”. However, BT is unable to confirm that, as both the marketing agent ERA Realty and the condominium’s Collective Sale Committee (CSC) have declined to comment.

    Reports have since emerged that the buyers are related to developers Kingsford Group and MCC Singapore.

    BT has seen a circular sent to owners inviting them to an owners’ meeting to be held on Jul 25, at which information will be shared on the preparation for the next stages and the estimated timeline for the completion of the sale.

    It was reported last month that the owners of the 99-year leasehold condominium received an expression of interest (EOI) from a developer for S$860 million, below its reserve price of S$938 million.

    According to a circular issued to owners by ERA, the CSC needed an 80 per cent mandate from owners of the condo by Jun 26 so as to enter into negotiations with the developer and to hammer out the terms of the sale-and-purchase (S&P) agreement. The deadline for the CSC to sign an S&P was Jul 5.

    The price was subsequently raised to S$890 million, 5.1 per cent below the S$938 million reserve price.

    The collective sale tender was launched on Mar 14, but before that, the condo had been put up for tender from Oct 5 to Nov 18, 2021, just before the government introduced fresh cooling measures in December. Chuan Park had also taken a shot at a collective sale in 2018, with an asking price of S$900 million — revised upwards from an initial S$790 million — but did not secure the necessary 80 per cent consent from owners at the time.

    At S$938 million, the land rate, which includes an upgrading premium of S$192.62 million, works out to S$1,256 per square foot per plot ratio, ERA had said previously. The development change is not payable due to the existing high baseline.

    The 400,588.72 square foot (sq ft) site has a gross plot ratio of 2.1 under the Urban Redevelopment Authority’s Master Plan 2019 and an achievable proposed gross floor area of 841,236.3 sq ft. Subject to the necessary approvals, ERA estimated that 900 units can be redeveloped there. It currently comprises 444 residential units and 2 commercial units.

    https://www.businesstimes.com.sg/rea...-reserve-price

  2. #2
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    Default Re: Chuan Park sold for S$890m, below reserve price

    Chuan Park owners to get S$1.16m to S$2.53m each; some unhappy over lack of timely updates

    Jul 26, 2022

    Owners of the 444 homes at Chuan Park condominium, which was sold en bloc on July 5, will receive gross proceeds of about S$1.16 million for a 710 square foot (sq ft) unit and up to S$2.53 million for a 2,045 sq ft unit.

    The 2 commercial units will receive S$1.09 million for a 474 sq ft unit and S$2 million for a 1,238 sq ft unit.

    The numbers were revealed to Chuan Park’s owners at a Zoom meeting last night (July 25), where marketing agent ERA Realty and the condominium’s Collective Sale Committee (CSC) again declined to reveal the name of the buyers. They said that under the terms of their agreement, they were not allowed to disclose the buyers’ identity without their permission.

    At the 3-hour long meeting, some owners expressed their unhappiness over what they felt was a lack of timely updates leading up to, and after the Jul 5 deadline for the condo’s CSC to sign the sales and purchase (S&P) agreement.

    On June 17, a circular issued to owners said an expression of interest (EOI) was received from a developer for S$860 million, and that the CSC required an 80 per cent mandate from owners by June 26 so as to enter into negotiations with the buyer.

    On June 29, owners were informed that an EOI for S$890 million was received, and they were urged to give their mandate for the sale.

    This led to some confusion over the deadline for achieving the 80 per cent mandate.

    It transpired that on July 5, 80.93 per cent of the subsidiary proprietors of Chuan Park by share value and 80.11 per cent by strata area had signed. However, the CSC explained that the buyers and their lawyers, understood to be Lee & Lee, were specific about what could and could not be revealed.

    The sale is subject to an Order for Sale being made by the Strata Titles Board, High Court or Court of Appeal.

    As with many other collective sale efforts, there have been disagreements and unpleasant exchanges at Chuan Park. One owner who did not sign the collective sale agreement lodged a police report earlier this month against another, alleging harassment, verbal abuse and threats.

    The 99-year leasehold development - built in 1985 - was sold via private treaty for S$890 million - 5.1 per cent below the S$938 million reserve price - after the tender for its collective sale closed on Apr 26 without bids. This makes Chuan Park the largest collective sale to have been sealed so far this year.

    It is understood that the buyers are related to developers Kingsford Group and MCC Singapore.

    It is said that Kingsford is eager to replenish its landbank after having sold all 1,862 units at its Normanton Park project as at end June this year. The project’s main contractor is MCC Singapore, a subsidiary of China Metallurgical Group Corporation (MCC Group), a China state-owned enterprise.

    The collective sale tender was launched on Mar 14, but before that, the condo had been put up for tender from Oct 5 to Nov 18, 2021, just before the government introduced fresh cooling measures in December. Chuan Park had also taken a shot at a collective sale in 2018, with an asking price of S$900 million — revised upwards from an initial S$790 million — but did not secure the necessary 80 per cent consent from owners at the time.

    ERA told owners last night that they had approached some 40 developers of different sizes but no bids were received apart from the EOI that came in at a very late stage of the private treaty period.

    At S$890 million, the land rate, which includes an estimated upgrading premium of S$165 million, works out to S$1,254 per square foot per plot ratio, according to ERA. The development charge is not payable due to the existing high baseline.

    The 400,588.7 sq ft site has a gross plot ratio of 2.1 under the Urban Redevelopment Authority’s Master Plan 2019 and an achievable proposed gross floor area of 841,236.3 sq ft.

    The sale is subject to several conditions, one of which is that the purchaser must obtain shareholder approval within 16 weeks after the date of the S&P agreement.

    Another is that it needs to obtain approval from the Land Transport Authority for the buyer’s pre-application feasibility study which supports a redevelopment of “not less than 919 dwelling units based on the average size of each dwelling unit being 85 square metres or such lower number of dwelling units that the purchaser may decide”. If these conditions are not met, the agreement is deemed cancelled and all deposit monies paid by the purchaser will be refunded.

    https://www.businesstimes.com.sg/rea...timely-updates

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    Default Re: Chuan Park sold for S$890m, below reserve price

    Chuan Park FB posts: A case of putting cart before the horse?

    Jul 28, 2022

    THE ink has barely dried on the Chuan Park en bloc deal - which is subject to various approvals - but social media posts have already appeared concerning a supposed new development that will take its place.

    A Facebook page called Residences At Chuan was created and posts made on Jul 16 - the day after Chuan Park’s owners received a circular informing them that a meeting would be held on Jul 25 to provide information concerning the collective sale.

    The posts reference Chuan Park’s en bloc sale, as well as developer Kingsford, which, together with MCC Singapore, are understood to be the buyers of the 99-year leasehold condominium site.

    Marketing agent ERA Realty and Chuan Park’s Collective Sale Committee (CSC) have so far declined to reveal the name of the buyers, as they said they were not allowed to disclose the buyers’ identity without their permission under the terms of their agreement.

    Other posts by Residences At Chuan highlight the new development’s good location, ease of accessibility, as well as the amenities and schools nearby.

    One Facebook advertisement called it “an upcoming mega-development”, with “900 units of 1-5 bedrooms” and mentioned “early bird developer’s pricing”. An agent who replied to a message sent in response to the ad said the development is likely to launch in 2023 and “ready by 2027”.

    However, these ads are unlikely to have been sanctioned by Chuan Park’s purchaser, as the sale is subject to an Order for Sale being made by the Strata Titles Board, High Court or Court of Appeal.

    The Business Times (BT) understands that it is only after the buyer takes over the land that conceptualisations and preparations for the site may be carried out. That is also when a possible name for the new development may be registered.

    Besides, the sale is subject to several conditions, one of which is that the purchaser must obtain shareholder approval within 16 weeks after the date of the sales and purchase (S&P) agreement. Others include the go-ahead from relevant authorities for its redevelopment plans. If these conditions are not met, the agreement is deemed cancelled and all deposit monies paid by the purchaser will be refunded.

    Responding to BT, ERA said that as the collective sale marketing agent, it is unable to comment on anything as the deal is still subject to approval.

    Checks at 5.25 pm on Wednesday found that the Residences At Chuan Facebook page was no longer accessible.

    Chuan Park was sold on Jul 5 via private treaty for S$890 million - 5.1 per cent below the S$938 million reserve price - after the tender for its collective sale closed on Apr 26 without bids.

    At S$890 million, the land rate, which includes an estimated upgrading premium of S$165 million, works out to S$1,254 per square foot per plot ratio, according to ERA. The development charge is not payable due to the existing high baseline.

    The 400,588.7 square foot (sq ft) site has a gross plot ratio of 2.1 under the Urban Redevelopment Authority’s Master Plan 2019 and an achievable proposed gross floor area of 841,236.3 sq ft.

    At the Jul 25 meeting, Chuan Park’s owners were told the gross proceeds each unit will get from the collective sale.

    They were also informed that the development was sold on Jul 5, the deadline for the CSC to sign the S&P agreement. It was also the day the 80 per cent mandate needed for the sale was achieved.

    Some owners have expressed their unhappiness over what they felt was a lack of timely updates leading up to, and after the Jul 5 deadline. However, the CSC explained that the buyers were specific about what could and could not be revealed.

    Owners of the 444 homes at Chuan Park will receive gross proceeds of about S$1.16 million for a 710 square foot (sq ft) unit and up to S$2.53 million for a 2,045 sq ft unit. The 2 commercial units will receive S$1.09 million for a 474 sq ft unit and S$2 million for a 1,238 sq ft unit.

    https://www.businesstimes.com.sg/rea...fore-the-horse

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