CDL (City Developments) and Hong Realty (of the Hong Leong Group) has launched in a joint bid for the 200-unit development site of Amber Park Condo for S$906.7 million, situated in Katong.
The collective sale managed to attract the big named players and it looks set to become one of the biggest joint ventures of all time within the region.
Leedon Heights was the largest freehold collective sale but with the massive S$906.7 million dollars asking price for Amber Park, it now stands as the biggest.
It all comes down to dollar value and it does seem as though Amber Park is able to just squeeze out the reigning champion Leedon Heights.
However, Leedon Heights did manage an amazing S$835 million-dollar price tag in 2007 from developer GuocoLand. While a new record has been reached over sales, another has been reached too with Amber Park Condo being the 15th collective (successful) sale in the current year.
The Katong and East Coast area is one which is already established within this community and it’s also an area which is highly sought after too which is very useful.
The CDL spokesman also commented. ‘This is an area which is currently undergoing a rejuvenation phase and that can hold the key to prosperity. The East Coast Park has been greatly improved and there is also the Thomson-East Coast Line to consider too.
There is a real potential here for Amber Park and its new development for local residents. It’s well located and the local amenities help to make this development stand out.
Also, it’s of a freehold status which is very rare today.’ The spokesman said with a hint of glee.
The reserve price for Amber Park stood at a massive S$768 million dollars but the joint bid was well over S$900 million which many believed to be a very aggressive bid.
It was 18% over the reserve which resulted in many talking about the bid and how high it reached.
CDL purchasing Amber Park wasn’t what got people talking but rather the bullish bid they entered. However, while it was quite an aggressive bid, in our mind, it actually made a lot of sense.
Eli Lee, OCBC Investment Research’s senior investment analyst commented. ‘Currently, the Singapore residential market is recovering nicely and it makes sense to put in a high bid in order to secure the property.
Eli Lee also said, Amber Park is really one of the few sites left that offers such scale in a vastly popular area.’ Mr. Lee commented that sites situated close to Tanjong Katong MRT station were few and far between and CDL knows this area well so there were real confidence to be gained from the site and the bid. As said, the winner bidder, CDL was the one to build the site in 1986 so they really knew the site well enough.
However, other analysts said it was possible to achieve S$2,600 to S$2,700 PSF when selling and that S$2,200 was the breakeven price.
The only problem with those prices is that they are slightly above the current PSF prices which are seen more often. Most sales manage S$1,900 to S$2,000 per square foot (Marine Blue and Amber Skye – two sites near Amber Park managed to achieve these prices) so it might be the only concern about this sizeable bid.
With this news, the share prices of CDL fell two cents. On the stock market, it slipped to S$11.42 which isn’t too bad but it shows there’s concern about the bid.
Amber Park has allowable gross plot ratio of 2.8 and currently 213,670 square ft; the plot ratio is from the 2014 Master Plan. What this all means is that the GFA can be 598,290 sq ft. There will not be any payable charges for the redevelopment at this stage.
JLL’s regional director Tan Hong Boon said that, ‘Amber Park is a sizable location and there really aren’t lots of these sites available at the moment.’ JLL were also the ones to market the property.
Mr Boon also went onto saying, ‘In recent times, we’ve seen a lot of en bloc sales and within the Amber Park site might be the last site that is redeveloped within the Amber Road area that has over 200,000 square ft.’
‘While there is approval needed, Hong Realty and CDL have redevelopment plans for the Amber Park site.’ CDL’s station said. ‘We hope, subject to approval, to convert the current site into a 25-storey luxury condominium. There may be 800 units on the site as well as a basement car park. Sea views are going to be on the agenda too.’
CEO Grant Kelley resigned paving the way for CDL’s new CEO-designate Sherman Kwek, who said, ‘having such a great site like Amber Park, with its freehold status is truly wonderful.
We have now a very unique development site and there’s a real advantage for us too. These freeholds are very rare currently in Singapore so being able to say we have one is great.’
Parkway Parade, CHIJ or Katong Primary School, the Tanjong Katong Primary and Tao Nan Schools are also close to the Amber Park site. The Katong shopping centres are close too and in truth, the surrounding area has a great and very rich heritage which makes it very popular.
The local amenities are also very sought after too.
From Amber Park, it’s a short drive to Changi Airport (via East Coast Parkway expressway) and the central business district too.
This is fantastic for new unit owners who work within the area. What is more, this is a very well established enclave (private residences) and it’s only a short walk to the East Coast Park as well.
In 2023, the Tanjong Katong MRT Station will be complete so there will be excellent transport links.
Amber Park’s sale created a buzz within the local community and it’s going to be interesting to see what the finished product will look like.