Source: Knight Frank Singapore
Rio Casa, a privatised HUDC estate, has been sold to Oxley-Lian Beng Venture for $575 million. The joint venture partners of Oxley-Lian Beng Venture are Oxley Holdings, KSH Development, Lian Beng Group and Apricot Capital.
The three listed partners KSH Holdings, Lian Beng and Oxley said in their respective filings to the stock exchange, that the JV firm intends to apply for the grant of a fresh 99-year lease for the property and to redevelop the site.
"An estimated differential premium of $208 million is payable to the State for the top-up of the lease and for the development of the site to a gross plot ratio of 2.8," said all three companies.
The total price including differential premium is around $783 million or $706 psf per plot ratio based on the maximum permissible GFA of approximately 1.1 million sq ft. With the inclusion of a 10% bonus balcony and a proposed plot ratio of 3.08 (2.8 + 10% balcony), the land price works out to approximately $669 psf ppr, subject to the authorities’ approval.
According to Knight Frank who brokered the sale, each owner stands to receive a gross sale price of approximately $2 million upon the successful completion of the sale, which is subject to several conditions being met, including an order of sale by the Strata Titles Board or Court Approval.
Rio Casa, located along Hougang Avenue 7, comprises seven blocks of 286 apartment and maisonette units. It has a site area of 396,234 sq ft (36,811.1 sqm). Under the Master Plan 2014, the site is zoned for residential use with a gross plot ratio of 2.8. This works out to a maximum permissible gross floor area of about 1.1 million square feet.
Oxley Holdings, which has a 35% stake in the JV company, said it will fund its portion of the cost of the purchase by internal resources and bank borrowings. KSH Holdings holds a 35% interest, Lian Beng Group 20% and Apricot Capital 10%.
The first en bloc transaction this year was One Tree Hill Gardens, which was also brokered by Knight Frank, was sold for $65 million or at the land rate of about $1,664 psf to a unit of Lum Chang Group.
Another en bloc tender for 330-unit Eunosville - also an ex-HUDC estate - will close on May 31. Owners at Eunosville in Sims Avenue expect offers of between $643 million and $653 million, which translates to about $780 to $790 psf per plot ratio.