The collective sale of Eunosville is now complete and the sale price has exceeded the originally expected bid of S$643 to S$653 million. OrangeTee, the marketing agent for the collective-sale, had stated the asking price of S$643 to S$653 million when the sale went live in April.
To ensure the sale, MCL Land made the massive offer of S$765.78 million, shutting out the other seven bidders. While the expected profit per square foot was expected around, S$780-790, the offer by Hong kong Land’s MCL Land has raised the value per square foot to S$909.
Marcus Oh, the OrangeTee executive director said that because of its superb location, excellent connectivity together with many Amenities, this site easily attracts interests and bids from developers.
With the sale moving forward, which includes an estimate of S$194 million charge to enhance the site to a gross plot ratio of 2.8 and raise the lease to 99 years.
The owners in the en bloc can expect to receive around S$2.25 to S$2.41 million per unit.
While the offer of S$765.78 million has been accepted by OrangeTee, the sale is still subject to a few conditions. The conditions will require MCL Land to receive approval for residential redevelopment with the 2.8 plot ratio stipulated by the URA Master Plan 2014. and the lease top up from the previous balance of 71 years to the 99-year lease.
On top of these requirements, the deal also must gain approval by the Strata Titles board. According to OrangeTee, 81 percent of Eunosville’s owners have agreed to the sale.
The sale of Eunosville is the 4th largest deal in collective sale history, preceded by Farrer Court, sold for S$1.2288 billion, Tampines Court Sold for $970 Million and Leedon Heights, sold for S$825 Million.
There has definitely been improvement in real estate and the developers involved are preparing themselves for the market recovery. This market improvement didn’t come without some struggles though.
25 en bloc sites were launched in between 2014 and 2016 but only 5 successful sold during this period, many sites failed received no bids because of overprice.
While the en bloc market continues to see improved growth, there will still be some issues that arise.
Many en bloc owner’s expectations are high regarding of price, it is easy to get minimum 80 percent consent from them but difficult to sell these en bloc sites to the Developers.