One of the Massive Enbloc Site Launch and Owners Aim to Make History
Pine Grove which has been though elongated journey in every stage leading up to the en bloc sale process has finally been launched for collective sale.
The asking price is a whopping S$1.86 billion. With the yield potential of 2000 plus units and considering the scale and the asking price, it will surely test the nerves and appetite for developers who would need to take risk beyond something that is easily palatable.
It is interesting to note that the reserve price for ex-HUDC project located in Ulu Pandan Road was actually hiked from $1.72 billion by $140 million to S$1.86 billion to achieve the minimum 80% consent for the en bloc sale from its owners.
This at a time when the mood is the market isn’t as high as it was last year before the cooling measures were announced in July.
In October last year there were media reports that a small group of owners had refused to give their consent over the asking price of S$1.72 billion for the 660-unit condo.
2018 had started on a positive note for the en bloc market and saw several big-ticket collective sale transactions till the government came up with the cooling measures in July.
The URA then tightened the screws with new laws that defined the number of units that could be built outside of its central area in case of non-landed properties.
The launch of Pine Grove marks a new beginning for en bloc sales in Holland Road area and makes it the first billion-dollar tender that is being launched this year and also for the first time.
Taking the reserve price into account we are able to arrive at a land rate of S$1,307 psf ppr. This rate also factors in the lease upgrade premium as well as the differential premium that is payable for GFA of 1,875,760 sq ft.
It is a 99-year leasehold site which still has 64 years remaining on its lease tenure and encompasses total area of 893,219 sq ft.
With 2.1 plot ratio the site can easily be redeveloped into a 24-storey residential property with the potential to yield 2050 units taking 85 sqm as the average size.
Great Development Potential
Central location in Holland Road Area
Few hundred meters from Dover MRT station
Good access to public transport
Proximity to Shopping Malls, Eateries & Market
Close to Good Educational Institutions
Pine Grove Condo is located advantageously and just a short walk away from the Dover MRT station. Apart from this, residents here also have access to regular busses that connects them to different parts of the city.
There are several shopping destinations nearby including Clementi Mall and Clementi Shopping Centre.
Apart from this Clementi Arcade which has several playgrounds as well as a park is also located near to this estate.
All these make Pine Grove an attractive investment for the developers as the presence of great educational institutions nearby such as the Nan Hua Secondary, Emaar International School, Nexus International School and Singapore Polytechnic serve as a good intensive for the buyers.
There are several restaurants, markets and food centres nearby. Ayer Rajah Expressway offers residents easy access to Orchard Road and this will allow residents to enjoy the several shopping and dining options in that district.
Transview Golf & Country Club is also close to the site. All these incentives add to the potential of this site for a developer.
It might be large in size and scale but at the same time has all the traits that developers need to look for while acquiring an en bloc property.
Oversized and big En blocs aren’t fast sells in the market and have had to wait for a while to attract developers.
Tulip Garden that was sold in 2018 for a whopping S$906.9 million was successful in its fourth attempt. The Chairman of the Collective Sale Committee had later termed the process to be “nerve-wrecking”.
The fact that individual unit owners at Tulip Garden are expected to pocket S$4.3 million to S$7.6 million individually might keep them motivated during this time period.
Dairy Farm estate is another mega size that is waiting for a developer to bid on it. Much like the Pine Grove it has to increase its reserve price to S$1.84 billion from the earlier S$1.688 billion to achieve the required minimum consent from its owners.
This was done to prevent the April 2019 deadline from lapsing. It is to be noted that in case of collective sales the property has to be launch tender 12 months from the day the first signature is collected.
C & H Group the marketing agents for Pine Grove’s en bloc sale have said that tender for the site shall close on 23rd April at 3:00 PM