Katong Omega

//Katong Omega
Katong Omega Freehold in District 15 Sold En Bloc for S$46.31 million

Katong Omega Sold En Bloc to Global Dragon for $46.31 million

In a major business switchover in Singapore, Global Dragon Limited formerly TMC Education Corporation has grabbed Katong Omega Apartments for S$46.31 million in a collective sale bid.

The Catalist listed company which was up until recently known to be a major player in the field of education has made a shift to property investment and development and this is its first major acquisition.

Teakhwa Real Estate the marketing agents for this collective sale said that Global Dragon was able to successfully edge past six other bidders when the public tender closed on April 5.

Singapore’s business tycoon Koh Wee Meng who is also the chief executive for Fragrance Group the real estate giant controls majority stakes at Global Dragon.

After the recent acquisition his stake in the company has reached 53.05% following the dissolution of the SPV created for this acquisition. As per the regulatory filing GDL Land Pte Ltd., a wholly owned subsidiary of Global Dragon had bid for the property.

Katong Omega is Located in District 15, the 18-unit property has 27,902.2 sq ft land area for free development. It falls under ‘residential’ zone and has 1.4 plot ratio with permissibility for a 5-storey structure.

Sieow Teak Hwa, Teakhwa Real Estate’s Managing Director estimated the GFA (gross floor area) with a potential of 39,063.4 sq ft would allow the redeveloped property to accommodate 36 apartments with an average size of 1,076 sq ft for each unit.

However, this would only be subject to necessary approvals from relevant authorities.

Mr Sieow also added that Global Dragon would have to pay S$2.7 million as development charge that would go towards intensifying land use to maximize the GFA and also use 10% bonus for balcony. This would translate to a rate of S$1,192.9 or S$1,140.7 psf if the 10% balcony bonus is accounted for.

By the terms of this deal existing owners of Katong Omega would be able to make S$2.52 million to S$2.6 million on the sale of this property. This is almost a 120% premium of the asking price for such properties individually in the open market.

With this sale completed the collective sales so far has clocked around S$6.2 billion this year which is about 71% of the total collective sales for residential properties in the previous year.

The erstwhile TMC Education Corporation reconstituted its board of directors as well as its management in February this year once TMC Academy the famous education arm was retained by former shareholders.

It must be mentioned that a special purpose vehicle Advanced Investment Holdings bought TMC Academy for S$6.32 million. Chin Kon Yuen and his wife Yeow Cheng Khim who were former Executive Chairman and Director at TMC Education bought TMC Academy after they had let off their majority stake in TMC Education selling 51% stake to Mr. Koh.

Katong Omega En Bloc Stats

0million
Sale Price
0sq.ft
Land Size
0units
Residential
0PR
Plot Ratio
District0
Zone
Previous News

Katong Omega Apartments En Bloc Sale 2018

The Katong Omega Apartments is one of three residential properties that have been put up for sale in the recent past, and the owners have fixed the reserve price at S$41 million.

The public tender, which closes on Apr 5, 2018, is expected to attract great attention from developers especially because the property is on freehold ownership.

Luckily, all the property owners have given a nod to the collective sale.

The other two sites that have recently been put up for sale are Asia Gardens and Parkview Mansions, whose public tenders close on Apr 16 and 20 respectively. Their indicative prices are S$338 million and S$320 million respectively.

The Katong Omega Apartments site is 27,902.4 sq ft in size and it holds 24 housing units. Its plot ratio is 1.4.

Based on the property reserve price, the land rate is around S$1,062 psf ppr, and that is inclusive of an anticipated development charge of S$480,000.

Nevertheless, the rate could drop to around S$1,022 once the 10% bonus balcony area is factored in. The law allows that the new development be constructed up to five storeys high.

Katong Omega Apartments Location and Connectivity

The Katong Omega freehold site is located along the East Coast Road within Prime District 15.

The nearest MRT station will be upcoming Marine Terrace which completion around 2023. This will make more convenience to the future residents and more appealing to the future buyers.

According to Teakhwa Real Estate’s Managing Director, Sieow Teak Hwa, the property’s superb location and its freehold status are factors bound to attract developers.

Developers are aware of the importance prospective home buyers attach to transport and connectivity, and when a site is well connected, home buyers are prepared to pay handsomely for a housing unit.

In the case of the Katong Omega site, Hwa sees the likelihood of the site’s selling price averaging around S$1,750 – S$1,850 per square foot (psf), which would be well above the land buying rate. The latter is below S$1,100.

The prospective developer can, therefore, look forward to a high net profit. When developers bid for a piece of property, they hope to be able to sell their new developments at a rate well over the rate at which they are buying the older property. That is the only way they would make a worthwhile profit.

Schools around Katong Omega Apartments

The presence of decent institutions of learning, including primary and secondary schools, is another indication the area is well liked. As such, it is safe to assume the location will attract people looking for residential houses.

There are three primary schools very near the Katong Omega condo, CHIJ (Katong), Tao Nan School and St. Patrick’s School.

The first two are less than half a kilometre away, while the last one is slightly more than half a kilometre. There are also international schools close by, Global Indian International (East Coast), Rosemount Kindergarten and Rosemount International, all three less than one and a half kilometre away.

Other Amenities and Attractions

People on a home-hunt normally want to know where they can take their families and friends for entertainment, and that is one aspect that makes the Katong Omega site favourable:

The Condo is surrounded by many good eating outlets and famous restaurants. For leisure East Coast Park is just few mins drive away. Not only that, Marina Bay Sands can be reach in 10 mins.

They also want to ensure there are shopping facilities around, a factor that Katong Omega satisfies. 112 Katong Mall and Katong Shopping Centre are a short distance away, along the East Coast Road. A bit further up will be Parkway Parade.

En Bloc 2018
En Bloc List
En bloc Process
En Bloc Sales Database
En Bloc 2017
PropNex En Bloc Services
City Gate Singapore
2018-04-12T16:33:45+00:00March 16th, 2018|Enbloc|