One of UOL Group’s companies is expected to buy Nanak Mansions Condo at Meyer Road for the price of S$201 million. The associate company got the privilege to purchase the freehold property after placing the winning bid.
According to Karamjit Singh, a senior consultant at JLL, the tender attracted 6 bids. The site was very attractive and this captured the attention of the developers. The key attractions include the nearby large park, the MRT station and access to Mayor Road (which is the main address), added Singh.
The cost of S$201m translates to about S$1,429 per sq ft ppr. This price includes development charges and Singh asserts that it is slightly higher than the previous benchmark for Albracca Condo, which works out to about S$1,409 per sq ft per plot ratio achieved in the month of July.
JLL acted as the broker for the Nanak Mansions deal and the Albracca deal.
Nanak Mansions freehold property is located at Singapore’s Meyer Road (92-128) and occupies an area of approximately 18,185m2. The building has a few stories and came into completion in the 80s.
It is the 4th freehold residential land near the Mayer-Amber road to attract the attention of investors in the industry this year.
The property consists of 36 maisonettes and each maisonette has either 4 or 5 bedrooms and strata areas approximately 2,551 square feet to 3,584 square feet. The gross plot ratio of the site is 1.4 and this is based on a Master Plan which was reserved for residential land development in 2014.
Secure Venture Development’s (No 1) winning bid was accepted on the 28th of September, 2017. In fact, every subsidiary proprietor of the property accepted the bid for the development.
The real estate development company will first part with up to 10% of the amount inclusive of the money paid when submitting the bid (S$1m). The company is expected to pay the amount within 7 business days after accepting the offer.
The deal will come into completion once it goes through the necessary legal procedures and the buyer will be required to pay the remaining sum of money. According to UOL, the deal completion process will not take more than 12 weeks from the day when the seller accepted Secure Venture Development’s bid.
As a joint venture company, Secure Venture Development is made up of Kheng Leong Company Limited and UOL Venture Investments Limited. Each of the partners owns 50 percent of the company (50-50 joint venture).
The company has a number of plans including re-developing the newly acquired freehold site and acquiring a 910m2 private road at Jalan Nuri near Nanak Mansions.
This will be possible if the property’s subsidiary proprietors as well as their associates agree to sell it at the agreed price before or on the agreed date.
UOL shares dropped by 5 cents to S$8.12.