The New Year has already seen its list of desperate en blocs giving another shot and finding a bidder for their properties.
Leonie Gardens is the latest to join this list. The primly located District 9 condo in Leonie Hill has launched its tender once again with an unaltered $800 million reserve price to find an interested bidder before expiry of its Collective Sales Agreement in May.
The tender for the Leonie Gardens closes on January 22 at 3:00 PM.
The Collective Sale Committee had launched the tender in May last year but it closed on June 21 without attracting any bidder.
Chairman of Leonie Gardens’ CSC Mr Vijay Chopra stated that they had shied away from re-launching the tender for the 138-unit condo till December due to the negative mood in the market and due to the new cooling measures that were announced in July last year.
The CSC believes that the developers have been able to grasp the impact of these cooling measures and the prospects look better at the moment.
When asked about the reason behind launching the property again at the same price, Mr. Chopra said that the owners weren’t unwilling to lower the price but the Collective Sale Committee wasn’t sure about how much to lower and hence they have gone in with the same price just to test the waters and see how the developers react to their fresh tender.
Based on the reserve price the owners at this condo can expect to cash between 4.3 million and $10.2 million depending on their holding.
As far as the land rate is concerned the rates come to $2,104 psf and it can further come down to $2,021 if the 10% balcony bonus is utilized upon receiving necessary approval from the authorities.
The 99-year leasehold site has more than 70 years of its lease tenure remaining and is being marketed by Huttons Asia. It covers a total area of 324,972.90 sq ft with the present GFA of 410,431.80 sq ft.
Any developer picking this property will benefit from the fact that 85 sq m average unit size law isn’t applicable for this property being part of the Central Area.
This would give them more flexibility of building smaller units which are easier to sell among potential buyers.
According to preliminary estimates by Huttons Asia the site has a yield potential of 544 condo units, a 70 sq m average size or around 380 units if they are around 100 sq m.
The 2014 Master Plan has zoned this place ‘residential’ and the plot ratio is 2.8. The developer can seek approval and increase the GFA to 449,031.63 sq ft. making use of the 10% balcony bonus.
Developers won’t need to bear any development charges if they stick to the existing baseline but in case the developer wants to make use of the 10% balcony bonus they need to pay development charges of $44 million.
Interestingly another Leonie Hill Road property, the 221-unit Horizon Towers which is a 99-year leasehold site also re-launched its tender at an unchanged $1.1 billion reserve price.
Its last attempt in the month of July had met with disappointment after the tender close in September without drawing any attention from the developers. Its new tender shall close on January 28 at 3:00 PM.
There are other District 9 properties that were put up for en bloc sales last year and didn’t find any takers. These include River Valley’s The Regalia and Mouth Elizabeth’s Elizabeth Tower.
Mr Vijay is upbeat about cracking a deal this time and said that Leonie Gardens is advantageously located offering great view of the skyline form the highest plane at Orchard Area and the two upcoming MRT Stations – Great World and Orchard Boulevard adds to its incentives.
He concluded by saying that even if this tender failed, they would be looking for a private treaty to conclude the sale.