[UPDATE] Clydesbuilt Investment’s 48 strata semi-detached houses at Eleven @Holland up for mortgagee sale
By Cecilia Chow
/ EdgeProp Singapore |
Eleven@Holland was completed in 2014 and developed by Clydesbuilt (Holland Link) [Photo: Samuel Isaac Chua/EdgeProp Singapore]
SINGAPORE (EDGEPROP) - Forty-eight semi-detached houses at Eleven @ Holland in Holland Link, off Bukit Timah Road, have been put up for mortgagee sale by sole agency PropNex Realty. The properties are part of an 82-unit strata semi-detached housing development completed in 2014, with a 99-year leasehold tenure from December 2010.
The 48 semi-detached houses for sale have an average strata area of 3,735 sq ft. Based on a guide price of $1,000 psf, the average price of each strata-titled semi-detached house is about $3.735 million.
The previous owner of the 48 units at Eleven@Holland was Clydesbuilt Investment, an entity 95% owned by property developer Ow Chun Ming aka Victor Ow of Clydesbuilt Group. Another vehicle, Clydesbuilt (Holland Link), was the developer and builder of Eleven @ Holland, as well as the Hakka Memorial Museum and Cultural Centre on the site.
Eleven@Holland is an 82-unit strata semi-detached housing project located on Holland Link, off Holland Road (Source: EdgeProp Landlens)
Ow and Clydesbuilt (Holland Link) were brought to court by their joint venture partner Innovation Corp, headed by director and major shareholder Annie Chen Liping. The High Court judge found Ow to have "breached his fiduciary duties to the plaintiff, Innovation Corporation", and that Clydesbuilt (Holland Link) had "dishonestly assisted the first defendant [Ow] in the breach of his fiduciary duties" in a May 2019 judgment. The High Court also found Ow to have "appropriated for himself a business opportunity that rightly belonged to the plaintiff [Chen and Innovation Corp]," which, in turn, allowed Clydesbuilt to be involved in the Eleven@Holland project as an owner and builder.
In the September 2022 Court of Appeals decision, Ow and Clydesbuilt (Holland Link) were ordered to pay Innovation Corp about $87 million in profits gained in obtaining the bid to develop Eleven @ Holland.
Chen of Innovation Corp had initially signed an agreement with Fong Yun Thai Association (FYTA) in September 2009 to develop the project. FYTA owned the Eleven@Holland site, adjacent to Fong Yun Thai Building and Fong Yun Thai Association's Columbarium. Chen introduced Ow to FYTA, and the board agreed to appoint the developer for the project in May 2010. Ow was to develop the project in a joint venture with Innovation Corp.
As part of an agreement signed in October 2010, Clydesbuilt (Holland Link) purchased the Eleven@Holland site for $70 million, with the amount to be paid offset against FYTA's share of the project's development costs. Part of the agreement included FYTA holding 25 of the 82 semi-detached houses at Eleven@Holland upon completion, while Clydesbuilt Investment would hold the remaining 57 units. However, nine have since been sold, leaving 48 today.
The 48 units are offered for sale at an average price of $3.735 million each or about $1,000 psf (Photo: PropNex)
In a September 23, 2022 judgment, the value of the remaining 48 units was assessed at $177.11 million as of May 13, 2019, when the court issued a judgment on liability.
Based on the average price per unit of $3.735 million provided by PropNex, the sale of the 48 units at Eleven@Holland could yield $179.28 million. The proceeds from the sale will go towards payment of the $87 million owed to Innovation Corp.
Eleven@Holland on Holland Link is just off the Good Class Bungalow enclave on Old Holland Road in prime District 10. It's also near the green corridor of Holland Plain and Holland Green Park.
Communal facilities include barbeque area, swimming pool and gym (Photo: PropNex)
Of the 48 properties for sale, 45 are semi-detached houses with three storeys, an attic and a basement. Each has five bedrooms, five bathrooms, a private lift and two dedicated private parking spots. Three units come with two storeys, an attic and a basement level. Some of the units
According to Tracy Goh, head of investment and collective sales at PropNex, Eleven @ Holland sits on a 125,000-sq ft site zoned for 3-storey semi-detached housing under the URA Master Plan 2019. Communal facilities within the development include barbeque areas, a gym and a swimming pool.
The latest transaction at Eleven @ Holland was in April this year, when a semi-detached house with a strata area of 3,821 sq ft changed hands for $3.5 million ($916 psf), according to a caveat lodged.
Only eight of the 48 units will be sold vacant, with the rest to be sold with existing tenancy. PropNex estimates rental rate to be at $15,000 a month, hence gross rental yields at about 4.8% (Photo: PropNex)
At an average price of $3.735 million each, the property is "more attractively priced" compared to the resale price of about $4.4 million achieved for 99-year leasehold, conventional semi-detached homes in District 10 last year, based on caveats lodged, adds Goh.
Goh expects the strata semi-detached houses at Eleven @ Holland to appeal to "a diverse group of buyers", including first-time home buyers, HDB upgraders or those living in private condos who aspire to live in a landed development. (Find HDB flats for rent or sale with our Singapore HDB directory)
However, most of the 48 detached homes will be sold with an existing tenancy, as only eight properties are currently vacant. Goh estimates gross rental yields to be about 4.8% based on the monthly rental rate of $15,000 achieved for some units. “There is capital upside given the limited supply of landed homes in Singapore,” she adds.
These properties are considered landed homes, so they are only available to Singaporeans. Singapore Permanent Residents and foreigners will need to seek approval from the Land Dealings Approval Unit of the Singapore Land Authority if they wish to buy landed property, Goh notes.
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