Florence Regency sold to Chinese developer Logan Property at $629 mil

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/ EdgeProp
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October 20, 2017 12:26 PM SGT
Florence Regency, a former HUDC estate, has been sold to Hong Kong-listed Chinese developer Logan Property in a collective sale at $629 million.
After factoring in estimated differential premiums of $288.6 million to top up the lease to a fresh 99 years and to develop the site to a gross plot ratio of 2.8, the land cost works out to be about $842 psf ppr, says marketing agent JLL.
The sale price matches Colliers International’s valuation of the site, which was submitted at the close of the public tender exercise for Florence Regency on Sept 27. At the close of the tender, the property received three bids which were above the reserve price of $600 million but which fell below Colliers’s valuation.
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Owners can expect to receive gross sales proceeds between $1.84 million to $1.89 million for each unit, says Tan Hong Boon, regional director at JLL.
According to JLL, this is the first collective sale attempt by the owners of Florence Regency, with the required 80% consent level reached in less than three weeks.
Based on the 2014 Master Plan, the 389,236 sq ft site at Hougang Avenue 2 is zoned ‘Residential’ with a gross plot ratio of 2.8, which works out to be an estimated 1,100 to 1,300 units. Florence Regency is located within a 1km radius of Holy Innocents’ Primary School and Xinmin Primary School.