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Thread: Cheung Kong is top bidder for Upper Thomson Rd condo plot

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    Default Cheung Kong is top bidder for Upper Thomson Rd condo plot

    http://www.businesstimes.com.sg/sub/...37540,00.html?

    Published November 6, 2009

    Firm's bid for Upper Thomson plot puts others in the shade

    Afternoon sun may pose a challenge in designing project, observers say


    A COMPANY unknown in local developer circles has placed the top bid for a plum 99-year leasehold condo plot at Upper Thomson Road. Treasure Well Investments bid about $251.3 million. This works out to $533.34 per square foot of potential gross floor area - which was above expectations and the highest unit land price seen at a state land tender this year.

    The top bid also surpassed by 21.5 per cent the next highest offer of $438.83 per square foot per plot ratio (psf ppr) placed at yesterday's tender by a unit of Singapore's Far East Organization.

    There is much speculation about Treasure Wells Investments, with some linking it to top China and Hong Kong developers, including possibly Hong Kong tycoon Li Ka-shing's Cheung Kong group, which is familiar with the Singapore property market.

    The tender attracted just six bids in total - about half the 12 to 15 bids received for each of the other four reserve list sites that were tendered out by the government in the past few months. 'Possibly, developers are waiting to see how much land government is releasing for its first half 2010 programme before deciding to bid for sites,' said Knight Frank chairman Tan Tiong Cheng.

    Colliers International executive director (investment sales) Ho Eng Joo reckons that the thinning out of sales that developers saw last month at their showflats may also have led some of them to stay away from yesterday's tender.

    Real estate lecturer Nicholas Mak too reckons that developers might be saving their bullets for the H1 2010 government land sales programme.

    As for the wide margin between the top two bidders for the latest Upper Thomson Road site yesterday, Knight Frank's Mr Tan suggests that local developers familiar with the site would know its constraints. 'Hence you find that other than the top bid, the rest of the bids were not that aggressive.'

    The site boasts a good location opposite the Singapore Island Country Club's Island Golf Course and Lower Peirce Reservoir.

    However, the site's best view faces the west - and the afternoon sun. 'It will be difficult to design a project when you have the afternoon sun. You can do double glazing and other things but orientation will be a challenge,' Mr Tan said.

    Analysts generally estimate that the top bid reflects a breakeven cost of about $850-900 psf and that the bidder would be eyeing selling prices of about $1,000 psf on average.

    UOL is selling the Meadows @ Peirce condo, also on Upper Thomson Road, at about $900 psf on average. The project is freehold but the latest plot has a superior location and is closer to town.

    Property consultants polled by BT in September when the government announced that an unnamed developer had made a successful application for the reserve list site had predicted that it would fetch bids ranging from $300 psf ppr to $425 psf ppr at tender.

    A developer who did not take part in yesterday's tender said that Far East's bid of $439 psf ppr was more realistic, translating to a breakeven cost of about $800-820 psf.

    The other developers that took part in yesterday's tender were Sim Lian Land ($190.5 million or $404.24 psf ppr), Frasers Centrepoint ($165.08 million or $350.30 psf ppr), Chip Eng Seng unit CEL Development ($150 million or $318.30 psf ppr) and GuocoLand's First Changi Development ($135 million or $286.47 psf ppr).

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    http://www.businesstimes.com.sg/sub/...23940,00.html?

    Published November 7, 2009

    Cheung Kong is top bidder for Upper Thomson Rd condo plot

    By KALPANA RASHIWALA


    THE top bidder for the 99-year condo site on Upper Thomson Road on Thursday has been revealed as a unit of Hong Kong tycoon Li Ka-shing's Cheung Kong Holdings.

    This was confirmed yesterday by Raymond Chui, general manager of the group's Singapore-based unit Property Enterprises Development.

    Cheung Kong unit Treasure Well Investments' bid was for $251.3 million or about $533 per square foot per plot ratio (psf ppr) - the highest seen for a private housing site at a state land tender this year.

    Mr Chui said the estimated breakeven cost of about $850 to $900 psf forecast by analysts quoted in the media was pretty accurate. 'We'll probably develop around 340 to 350 units,' he added.

    Treasure Well's top bid was 21.5 per cent above the next highest offer, which was made by Singapore's Far East Organization.

    When asked if Cheung Kong regretted having paid such a wide margin, especially in hindsight as the government announced its H1 2010 land sales programme the next day with substantial supply in the confirmed list, Mr Chui replied: 'We've done our sums. The site is in a very good location and we have confidence in the future of the Singapore property market.'

    The Upper Thomson Road site is located opposite the Singapore Island Country Club's Island Golf Course and Lower Peirce Reservoir.

    The group will also be developing a 295-unit condo on a 99-year-leasehold site facing West Coast Park and overlooking the sea.

    That is likely to be launched next year, possibly in the second quarter, Mr Chui revealed.

    The project will comprise fairly regular-sized units. 'Our showflat is not yet ready,' he added.

    Cheung Kong clinched the West Coast site at a state tender in March last year, paying $110.44 million or $305 psf ppr.

    Interestingly, it also outbid Far East Organization for that site, but with a much narrower winning margin of just 1.4 per cent.


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    http://www.straitstimes.com/Money/St...ry_450954.html

    Nov 6, 2009

    UPPER THOMSON CONDO PLOT

    Developer makes surprise $251m offer

    Sum far exceeds $82m trigger bid in tender that drew only six bidders

    By Joyce Teo


    A CONDOMINIUM plot in Upper Thomson Road has attracted a much higher-than-expected bid from a mystery developer, even though the number of bids was well below recent levels.

    Treasure Well Investments, whose parent company is Total Wonder Holdings - both unknown names here - put in a bid of $251.34 million, the Urban Redevelopment Authority (URA) said.

    That far exceeds the $82 million trigger bid or $174 per sq ft set by URA for the 2.1ha 99-year leasehold site. It works out to $533 psf of gross floor area, a price that consultants said was aggressive.

    The site can be developed into a condo of up to 20 storeys with about 400 units.

    This highest bid was also 21 per cent above the second-highest bid of $206.8 million or $439 psf of gross floor area from Far East's Tuas Hi-Tech Park.

    The other bidders were Sim Lian Land, Frasers Centrepoint, Chip Eng Seng's CEL Development and GuocoLand's First Changi Development.

    The plot, near Lower Peirce Reservoir Park and Bishan Park, was triggered for sale after an unnamed developer committed to bid at least $82 million for the site.

    Property consultants suspect the top bidder could be a foreign player.

    Many industry players were scrambling to uncover the identity of the bidder at the Real Estate Developers' Association of Singapore's 50th anniversary dinner yesterday evening.

    Whoever is behind the top bid, the figures mean that it may have to sell the apartments for about $1,000 psf or more, they said. The site is not near an MRT station, though it has its appeal.

    'Although the site gets the afternoon sun, it does overlook a beautiful golf course and would thus offer great views,' said Mr Ho Eng Joo, Colliers International's executive director (investment sales).

    Based on the top bid, the break-even price would be about $800 to $900 psf of potential gross floor area, he said.

    CBRE Research executive director Li Hiaw Ho had said in late September that the site was likely to sell for between $375 psf and $425 psf per plot ratio. The developer would be set to launch the project at $800 psf to $850 psf, he added.

    Mr Li had expected the site - which has a full view of the Island Golf Course and Lower Peirce Reservoir - to be hotly contested, considering the strong showing at recent tender exercises.

    But this time, only six developers joined the tender, less than half the usual number of bids seen in recent tenders.

    'The relatively smaller number of bids suggests developers are cautious, in anticipation of the announcement of the government land sales programme,' said Knight Frank chairman Tan Tiong Cheng.

    The Government said in September that it will be pushing out 'confirmed list' sites, as part of a package of measures to calm the fast-rising market then.

    These are sites that are offered irrespective of prior expressions of interest.

    But the number and location of these sites have yet to be unveiled.

    'This tender would be one of the first few cases that suggest the recent government measures have had some bearing on market behaviour, and that there is some cautiousness in the market,' said Jones Lang LaSalle's head of research, South-east Asia, Dr Chua Yang Liang.

    Some experts said the recent slowdown in the market for new private homes could have dampened demand for this site. There were fewer home sales last month than in previous months.

    'The fear could be that take-up rate may continue to fall,' said Colliers' Mr Ho. If that happens, buying sentiment could be affected and thereafter, possibly prices, experts said.

    Dr Chua believes the rate of rise in private home prices may slow, but they are unlikely to fall. 'At the moment, there's a certain momentum in the market, so we do not expect a turn in prices in the immediate future,' he said.

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