Bigger Collective Sale Sites Now Has More Love Than The Smaller Ones!
Chuan Park Condo has been sold en bloc to a developer during their private treaty sale negotiation for S$890 million.
This will probably be the biggest collective sale in 2022 after Tanglin Shopping Centre was acquired earlier this year for S$868 million.
ERA Realty, which handles the whole en bloc process of Chuan Park Condo and the (CSC) Collective Sale Committee, refuses to reveal the buyer’s name.
They claimed that they could not disclose the buyers’ identities without their consent in accordance with the terms of their agreement.
Touching on gross sale proceeds, each happy owner will get about S$1.16 million up to S$2.53 million, this depends on the size of the unit they own.
Offer Received On June 2022
The marketing agent reported that the Lorong Chuan property got an expression of interest (EOI) from a developer last month for S$860 million, which was less than their reserve price of S$938 million.
The CSC required an 80 percent mandate from condo owners by June 26 in order to begin discussions with the developer and iron out the details of the sale-and-purchase (S&P) transaction, according to a circular sent to owners by ERA.
Later, the price was increased to S$890 million, which is 5.1% less than the S$938 million reserve price.
The CSC has until July 5 to execute an S&P.
Owners of Chuan Park condos’ first attempt at a collective sale was in 2018 with an asking price of S$900 million.
They did launch their tender again last year, from October 5 to November 18, 2021, right before the government implemented new cooling measures in December.
Sense that this might be the year they have been waiting for with developers’ appetite for bigger plot of land, they relaunched again on March 14 this year and met their success.
ERA predicted that 900 apartments may be rebuilt on this site, if the required clearances were obtained.
The residential development currently has 444 apartments and 2 commercial units.
Market watchers said that in the last 7 months since the beginning of the year, developers have managed to move out a few thousand units from their inventory. Their stocks are now reported to be very low.
They are now desperate for larger land for their new launch project and are willing to bet big with demanded buyers and robust residential sales back on them.