48 semi-detached houses at Eleven@Holland up for mortgagee sale while developer winds up

May 31, 2023

FORTY-EIGHT semi-detached houses at Eleven@Holland off Bukit Timah Road have been put on the block after the developer went into liquidation.

The 99-year leasehold units are part of an 82-unit project developed by Clydesbuilt (Holland Link), which is being wound up, with liquidators appointed in November 2022. The properties are mortgaged to Hong Leong Finance.

Located in District 10, Eleven@Holland is sited near the Good Class Bungalow Areas of Brizay Park and Garlick Avenue.

The 48 units available for sale have an average strata area of 3,735 square feet (sq ft), with a guide price of about S$1,000 per square foot (psf). This works out to an average price of S$3.74 million for each semi-detached house, said PropNex, the real estate agency appointed for the mortgagee sale.

In comparison, the average transacted resale price for 99-year leasehold semi-detached homes in District 10 last year stood at S$4.4 million according to caveat data, said PropNex’s head of investment and collective sales Tracy Goh.

Checks by BT showed that the 48 units were valued at S$177 million in May 2019. This puts the average valuation for the houses at S$3.69 million according to the 2019 estimate.

They were previously held by Clydesbuilt (Holland Link), which together with property developer Ow Chun Ming, also known as Victor Ow, were ordered by the High Court in September 2022 to pay S$87 million in profits they made from developing Eleven@Holland.

The sum was to be paid to Innovative Corp, a real estate company which Ow joined as a director in December 2009 to help with a project which included Eleven@Holland.

According to court documents, Ow acquired knowledge of the project in his capacity as a company representative after which he successfully tendered for the project and acquired it for himself. Ow then incorporated Clydesbuilt (Holland Link) in May 2010. Clydesbuilt (Holland Link) is wholly owned by Clydesbuilt Investment which was thus entitled to own the 48 units. Ow then resigned from Innovative Corp in August 2010.

Eleven@Holland was launched in June 2011, starting from S$1,050 psf. In the High Court judgment in September 2022, Justice Ang Cheng Hock said that the reasonable construction costs of the project which included Eleven@Holland were assessed to be S$41.3 million.

Some of the 48 unsold units were rented out from 2014 to 2020, generating income of around S$21 million for Clydesbuilt (Holland Link).

Most of the units will be sold with existing tenancy, as only eight properties are currently vacant, said Goh on Wednesday. “Gross rental yields could come up to a healthy 4.8 per cent, with some units fetching a monthly rental of S$15,000,” she said.

Forty-five of the semi-detached houses have three storeys, plus an attic and a basement. Those units each have five bedrooms with private lift access. The remaining three houses have two storeys plus attic and basement.

Eleven@Holland sits on a 125,000 sq ft site with a 99-year lease which commenced from December 2010. Facilities include a gym, swimming pool and barbecue area.

The development is located within walking distance from the Sixth Avenue MRT station and within one kilometre from various primary schools.

A Knight Frank report published in April noted that mortgagee listings had jumped from 10 in the last quarter to 32 in Q1 2023.

During the first quarter, there were 18 residential mortgagee listings, more than twice the eight listings in the previous quarter.

Knight Frank noted that with the general deteriorating business sentiment and cost pressures on operations, more business owners might find it challenging to keep their businesses above water. The higher number of bankruptcy applications filed would likely result in more mortgagee listings, it added.

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