[UPDATE] CDL sells 16 units at Nouvel 18 at special promotional prices, mostly to Chinese buyers

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/ EdgeProp Singapore
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August 31, 2020 7:26 PM SGT
SINGAPORE (EDGEPROP) - On July 15, Singapore-listed property giant City Developments (CDL) released 15 units at its luxury condo Nouvel 18, at special promotional discount. Following its success, CDL released another five units this week, bringing the tally to 20 units. Of these, 16 have been sold as at September 2. The average price of these units sold is $3,100 psf, just 10% below the average price of at least $3,440 psf for 29 units sold as at August 9, when CDL reported its 1H2020 results a fortnight ago. The offer is for a limited time only, says a CDL spokesperson.
This brings total sales in the 156-unit, freehold development to 43 units and average selling price to $3,350 psf.
Nouvel 18 - EDGEPROP SINGAPORE
A total of 43 units have been sold at Nouvel 18 to date, at an average price of $3,350 psf (Photo: Samuel Isaac Chua/EdgeProp Singapore)
According to the CDL spokesperson, about 88% of the buyers at Nouvel 18 are foreigners — predominantly Chinese — while Singaporeans make up the remaining 12%. The units sold in this latest promotion are a mix of vacant and tenanted units, including fully-furnished show units.
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To date, 57 units at Nouvel 18 have been tenanted at an average rental rate of $5.50 psf. This is a premium to the median rate of $3.93 psf achieved in the prime District 10 neighbourhood of Anderson Road, Ardmore Park, Orange Grove and Stevens Road, based on URA Realis rental data from January to July.
Prices of the units offered under the tactical promotion starts from $3.694 million ($2,767 psf) for a 1,335 sq ft two-bedroom-plus-study; upwards of $4.489 million ($2,838 psf) for a 1,582 sq ft, three-bedroom unit; and from $7.021 million ($2,836 psf) for a 2,476 sq ft, four-bedroom-plus study.
Located on Anderson Road, just off the prestigious Ardmore Park neighbourhood, Nouvel 18 has twin 36-storey towers with all-black façade, designed by world-renowned, award-winning French architect Jean Nouvel. The project was developed by CDL in a 50:50 joint venture with fellow listed developer, Wing Tai Holdings and completed in 2014. It is a redevelopment of the former Anderson 18, which the joint venture partners purchased for $477.7 million in March 2007, during the previous collective sale boom.
Anderson Road -EDGEPROP SINGAPORE - EDGEPROP SINGAPORE
The twin 36-storey development on Anderson Road, just off Ardmore Park, was designed by French architect Jean Nouvel (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Wing Tai sold its 50% stake in Summervale Properties — the entity that owns Nouvel 18 — to CDL for $410.96 million in July 2016. Hence, CDL owned 100% stake in Summervale Properties before exiting its entire stake in October 2016 through a profit participation security (PPS) for $977.6 million. The deal valued Nouvel 18 at $965.4 million, or $2,750 psf based on Nouvel 18’s saleable area of about 351,000 sq ft. Hence, the latest average selling price of $3,350 psf for the 43 units is still 22% above the value of the PPS.
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Through its wholly-owned subsidiary Ventagrand Holdings, CDL still holds $140 million in notes, or 14.3% of the shares in the PPS, which will mature in 2023. DBS Bank took $156.4 million of notes representing 16% of the PPS, which mature in October 2021. Senior loans from DBS Bank and United Overseas Bank accounted for $579.2 million or 59.3% of the PPS.
Meanwhile, shareholders of special purpose vehicle, Green 18, where investors have subscribed to $102.8 million in preferred shares, or 10.5% of the PPS, enjoy a preferred 5% annual internal rate of return as well as any upside beyond the incentive fee payable.
Under the PPS, Trentwell Management, a wholly-owned subsidiary of CDL, is the exclusive asset manager for Nouvel 18, and has the exclusive authority to manage, lease and sell the units in the project for five years, with the option to extend to seven years. In return, Trentwell receives an incentive fee when a performance benchmark is met.
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Following the latest sales, only 113 units at Nouvel 18 are available. The development continues to attract investor attention not only because of its bold architecture by a famous architect, but its freehold tenure and prestigious location, says the CDL spokesperson. “The attractive pricing for an iconic, ultra-luxury residence in this coveted residential enclave is a draw for buyers, who will also enjoy signature residential host services that are available to Nouvel 18 residents,” adds the spokesperson.
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