Collective-sale hopefuls

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/ The Edge Property
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June 23, 2017 4:00 PM SGT
(Picture by The Edge Property) Ivory Heights is expected to make its first collective sale attempt
Besides Serangoon Ville and Tampines Court, other privatised HUDC estates that are exploring a collective sale include Ivory Heights in Jurong East, Pine Grove in the Mount Sinai area, Laguna Park in Marine Parade and Chancery Court on Dunearn Road.
It will be Ivory Heights’ first attempt at a collective sale. For Laguna Park, it will be the third collective sale attempt. Other former government housing projects similar to HUDC estates that have also activated the collective sale process include the 488-unit Normanton Park near Kent Ridge and the 480-unit Lagoon View at Marine Parade. It will be Lagoon View’s first collective sale attempt. It was built in 1977 to house Singapore Armed Forces (SAF) personnel and their families, and was later privatised.
Normanton Park also used to house SAF personnel and their families, and was later privatised. It was first put up for collective sale tender in late October 2015. At that time, the reserve price was $840 million.
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Besides the privatised HUDC estates, other 99-year leasehold condominiums that are attempting a collective sale are said to be Chuan Park, Thomson View and Pearl Bank Apartments. For the owners of Pearl Bank Apartments, it will be their fifth collective sale attempt. They have appointed Colliers International as their marketing agent.
There are at least 30 projects at various stages of the collective sale process — either trying to form a collective sale committee, or having formed one, are in the process of appointing a property consultant or lawyer to act on their behalf. And the figures could increase by next month, says Tan Hong Boon, JLL regional director of investments.
“With the school holidays in June, many condos are holding an extraordinary general meeting in July to try and form a collective sale committee,” notes Tan. “This could add another 10 or more collective sales to the list by next month. It’s a very dynamic list that’s changing almost every day.”
(Picture by Samuel Isaac Chua) Amber Park is expected to make a fourth collective sale attempt with JLL as its property consultant
Not all collective sale attempts will take off. “Some may not achieve the 80% agreement,” says Tan. “Others may hit 80%, but at a reserve price that is prohibitive to developers. So, there are many factors that come into play.”
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JLL has been active in collective sales. Apart from handling the successful collective sale of Shunfu Ville, Raintree Gardens and Goh & Goh Building, the property consultant has also been appointed to represent the owners of Florence Regency, Amber Park and Brookvale Park in their collective sale process. JLL is also the appointed marketing agent for Boon Teck Tower in Balestier and The Albracca on Meyer Road.
While Florence Regency is a privatised HUDC estate, Amber Park and Brookvale Park Condominium are private condos. Brookvale Park is a 160-unit development located on a 373,000 sq ft, 999-year leasehold site with a plot ratio of 1.6. The low-rise condo is on Brookvale Drive, off Sunset Way near Clementi and this is its first collective sale attempt.
For Amber Park, however, it will be its fourth collective sale attempt. The third attempt was in 2015, with a reserve price of $743.9 million, which translated into a land cost of $1,225 psf ppr, based on the freehold land area of 213,676 sq ft and a plot ratio of 2.8.
CBRE is the marketing agent for the collective sale of Cairnhill Mansions and Villa D’Este.
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Cairnhill Mansions, a 54-year-old freehold building, had been put up for collective sale at least three times. Meanwhile, Villa D’Este, a 12- unit apartment block on Dalvey Road, will also be put up for collective sale again. Savills Singapore has been appointed the marketing agent for Hollandia on Holland Road.
Knight Frank has been appointed for the collective sale of Kemaman Point, located off Balestier Road, and Dunearn Court. Both are boutique freehold developments (see table). “Collective sale is part of the rejuvenation of the city,” says Galven Tan, CBRE’s director of investment properties. “It’s inevitable and just a matter of time.” In some cases, a number of times as well.
The list of collective-sale hopefuls continues to lengthen. “It feels like the whole of Singapore is up for collective sale,” remarks Alex Oh, director of investment and advisory department at OrangeTee.

This article appeared in The Edge Property Pullout, Issue 785 (June 26, 2017) of The Edge Singapore