Chuan Park in private talks after close of $938m collective sale tender
December 2, 2021
SINGAPORE (THE BUSINESS TIMES) – Chuan Park condominium has closed its tender and is currently “in a private treaty negotiation process”, said appointed marketing agent ERA.
An ERA spokesman told The Business Times that the condo had received some interest from developers. However, he did not confirm whether any bid was received.
ERA added that the negotiation is expected to conclude next month.
The condo at Lorong Chuan was put up for tender with an indicative price of $938 million from Oct 5 to Nov 18.
Located beside Lorong Chuan MRT, the 400,588.72 sq ft property comprises 444 residential apartments, a food and beverage space not currently occupied, as well as a supermarket. According to ERA, the property could also be redeveloped into 900 to 919 units.
Developed by Golden Developer, a unit of Far East Organization, the property has a 99-year lease which began in 1980. The lease will expire on June 5, 2079, or in about 58 years.
In 2018, Chuan Park condominium tried for a collective sale with an asking price of $900 million, but could not secure the necessary 80 per cent consent of owners. This came even after the asking price was raised from its initial $790 million. More than 80 per cent of the owners consented to the tender in October this year.
The collective sale market here is still going strong, with La Ville succeeding in its third attempt, going to Hong Kong-listed ZACD Group for $152 million – above its reserve price.
The high-rise development, which is situated at Tanjong Rhu, was put up for sale in October this year for $148 million, but finally went for higher following strong competition among bidders, The Business Times understands.
Meanwhile, freehold hilltop condominium Gloria Mansion at Pasir Panjang Road is back on the market with a reserve price of $69 million, exclusive marketing agent Strata AMC told BT.
Gloria Mansion was previously launched for collective sale in June 2018 with a $79 million asking price. That was about two weeks before the property market was hit by a round of cooling measures that doused the collective sale fever at the time.
Completed in 1995, the 12-storey condo houses 31 apartments and sits on a site area of about 45,742 sq ft with a current plot ratio of 1.4. It is zoned for residential use under the Urban Redevelopment Authority’s Master Plan 2019.
Stata AMC noted that the condo has a “panoramic view” overlooking the future Greater Southern Waterfront, in particular the Pasir Panjang Terminals, which are expected to be consolidated at Tuas Port by the 2040s.
“Given its proximity to the future Greater Southern Waterfront, Gloria Mansion presents an exceptional redevelopment opportunity for developers seeking to create an iconic residential development,” Strata AMC said.
It added that the site is likely to attract small- to mid-sized developers, given the strategic location and “attractive reserve price” with no development charge required.