Singapore Companies
Published February 7, 2007

Frasers inks deal to buy Flamingo Valley for $194m

FRASERS Centrepoint Ltd has signed a deal to buy the freehold Flamingo Valley at Siglap Road for about $194 million through a collective sale, BT understands. This works out to about $415 psf of potential gross floor area, inclusive of an estimated $820,000 development charge.

The property unit of mainboard-listed Fraser & Neave was the top bidder for the property when its tender closed last week.

Frasers Centrepoint can redevelop the 335,161 sq ft site into a five-storey condo with about 300 apartments averaging 1,500 sq ft. The site is zoned for residential use with a 1.4 plot ratio (ratio of potential maximum gross floor area to land area).

The deal was brokered by Colliers International. Rodyk & Davidson was lawyer to the majority owners.

The old 185-apartment Flamingo Valley site was developed in the 1980s by Ban Hin Leong.

This was the second attempt to sell Flamingo Valley. It was initially put on the market in July/August last year but failed to fetch the owners' asking price. But a change in outlook by developers around the turn of the year has revived developers' interest in collective sale sites that were not sold last year.

That has led to property consultants renewing marketing efforts for sites and Colliers relaunched Flamingo Valley in January.

Big sites bought by Frasers Centrepoint last year include Far East Mansion along River Valley, for $256 million, and Waterfront View in the Bedok area for $385 million. The latter was a joint acquisition with Far East Organization.

Frasers Centrepoint also bought the adjacent leasehold Bedok and Changi theatre sites for $40.8 million, with plans to develop a mall which, when completed, it will pump into its shopping centre trust, Frasers Centrepoint Trust.

Last month, Frasers Centrepoint took out a put-and-call-option to acquire a 10,900 sq m mall in NTUC Choice Homes' upcoming development, Yew Tee Residences.

On the stock market yesterday, F&N shares closed 5 cents lower at $5.35.