Mandarin Gardens, one of the most sought-after condominium in District 15 has failed in its attempt of en bloc sale for $2.927 billion asking price – a High record by itself.
The leasehold condo which is located in Siglap saw its collective sales agreement expire on March 24 (Sunday).
It is interesting to note that the said agreement had so far received only 68% consent from the owners as against the minimum consent of 80% which is required to sell a property in collective sale.
Mr Vincent Teo, the Chairman of the Collective Sale Committee announced in a letter addressed to the owners that the CSC would be immediately dissolved.
He also expressed his confidence in the fact that people who had already signed for the collective sale would support the next committee that will be set up.
Mr Teo also added that the owners and the sale committee had learnt important lessons over the last few months and this is expected to benefit them in the future.
He added that back in 2008 their first collective sale attempt had stalled due to the global financial meltdown and back then even the collective sale agreement wasn’t prepared.
In an attempt to gather more consent from the unwilling owners at this 1,006-unit leasehold property the CSC had increased the reserve price to $2.927 billion.
In fact, this was the second increase of the asking price after it had been increased in November from $2.479 billion to $2.788 billion after some of the owners had discovered that land parcel component had been undervalued in the property.
In the transaction had been successfully completed it would have been a record transaction in terms of dollar value in Singapore.
In his letter to the owners, Mr Teo mentioned that the current sentiments for en bloc sale in the market are negative as several large en bloc tenders have failed to attract interest of the developers.
He cited the case of $1.1 billion Horizon Towers that saw its tender close on January 28 without any interested bidder.
Mr Teo is also hopeful that market sentiments would turn soon and when there is a favourable atmosphere collective sale process can be re-initiated.
Also, they won’t have to wait for the mandatory 2 years or have 50% of the owners by share value sign a request to call for a general body meeting for the formation of the collective sale committee once again.
He also expressed his gratitude to all those owners who had supported the collective sale efforts and hoped that they would offer their support to the next collective sale effort when it comes up and that too not very far into the future.