CDL-Hong Realty JV acquires Amber Park for $906.7 mil

City Developments (CDL) announced on Oct 4 that a joint venture (JV) comprising its subsidiary and an arm of Hong Leong Group have acquired the Amber Park site for $906.7 million, or $1,515 psf per plot ratio (ppr). The tender for the Amber Park collective sale closed on Oct 3.

The acquisition of Amber Park was made through City Development’s wholly-owned subsidiary Cityzens Development and Hong Leong Group’s private real estate arm Hong Realty. Hong Realty holds a 20% stake in the project.

The CDL-Hong Realty JV intends to redevelop the site into a luxury condominium project comprising close to 800 units across four 25-storey blocks, as well as a basement carpark. According to a CDL statement, most apartments in the new project will be north-south facing, with many units commanding sea views.

According to CDL, the site is “one of the largest collective sale sites” within the Amber Road enclave. Under the 2014 Master Plan, the 213,670 sq ft site that the 200-unit Amber Park sits on is zoned ‘residential’, with a gross plot ratio of 2.8, which works out to be an allowable gross plot area of approximately 598,290 sq ft. The site is within walking distance of Tanjong Katong MRT station on the future Thomson-East Coast Line.

Sherman Kwek, CEO-Designate of CDL, says, “CDL and our JV partner Hong Realty are delighted to win the tender for this site in the well-sought after Katong and East Coast area. This is one of our most significant investment deals in the Singapore residential market in recent years.”

Tan Hong Boon, regional director at JLL, comments, “Amber Park’s successful site now holds the record as Singapore’s largest freehold collective sale by dollar value. At the sale price, the owners would expect to receive gross sale proceeds between $4.3 million and $8.3 million.”

When Amber Park was launched for collective sale in mid-August, the reserve price was $768 million ($1,284 psf ppr), according to JLL. No development charges are payable for the proposed redevelopment of Amber Park, JLL says.

Thumbnail Photograph Source: JLL