The famous property development, construction and investment company Sim Lian Group have acquired Tampines Court for $970 million.
It is the Biggest En Bloc deal for a former HUDC property in a decade since 2007 when Farrer Court was sold for $1.34 billion.
Before this transaction, there had been two previous unsuccessful attempts to sell Tampines Court.
Tampines Court, which has 560 units, is now private property, and it is located on Tampines Street 11.
According to Mr. Terence Lian, who is head of investment sales at Huttons Asia, the price per square foot (psf) for each plot adds up to $676. Huttons Asia is the marketing agent.
Every owner will receive between $1.71 million and 1.75 million, and the state will expect two payments from the developer, one representing the cost of site enhancement, and the other as a lease top up to 99 yrs.
According to Mr. Lian, the developer only came to an agreement regarding all conditions of the sale of the property after rigorous negotiations that took a whole week.
Keen industry observers estimate that Tampines Court could hold between 2,000 and 2,100 new housing units on its 702,164 square feet site, if the developer makes maximum use of it.
They see this capacity as having the potential to work to Sim Lian’s advantage or disadvantage. CBRE’s capital markets director, Mr. Galven Tan, explained to The Straits Times that the reason there was only a single bidder for the Tampines Court tender, as reported in the media, was that the sheer enormity of the development required kept many potential bidders away.
He also added that the housing units might end up being a little more expensive, as the developer is likely to pass on the cost of the land to the customers.
He was, however, upbeat about the potential sale of houses in the area, noting the industry has recently experienced a bumper harvest.
On Tampines Court, analysts were quick to caution Sim Lian they have only a 5-yrs window within which to develop the property and sell off the housing units, otherwise they stand to incur the extra cost of additional buyer’s stamp duty (ABSD) as per the law.
According to Mr. Nicholas Mak who is the executive director of ZACD Group, Sim Lian is unlikely to face competition in the near future considering no additional condo project is expected in the neighbourhood soon.
However, he estimated that for the developer to break even, the units need to go for between $1,050 and $1,150 per square foot.
SIM Lian Group Limited has been in the Real Estate industry in Singapore for more than 40 years with an impressive track record to boast. They have also won a number of awards for their expertise in the field of construction.
They have already created a portfolio of developments ranging from mixed-use, residential, industrial, retail and commercial with focus on high quality expertise, prime location as well as a systematic take on space planning.
They continue to build their portfolio with investment grade shopping centres and other developments here in this region.
SIM Lian Group is no stranger to the Tampines area. They have been the developers for two Housing Board Design, Build, and Sell Scheme projects in Tampines, Centrale 8 and The Premier.
Aside from that, they also developed the public-private housing hybrid project, the executive condo, Tampines Trilliant.
The Group also has a number of investments in Australia including a couple of malls in the prominent suburb Dalyellup, an area in the nearby CBD of Melbourne, a thriving community in the outskirts of Melbourne, a financial precinct in the CBD of Sydney and a modernized Grade A commercial complex in Perth.
SIM Lian Group continues to be one of the leading developers in Singapore and abroad.