GuocoLand-Hong Leong JV snap up Pacific Mansion for $980 mil, second largest collective sale deal in history

Updated, March 19, 2018, 5:36 p.m., to change the buyers of the site to GuocoLand and subsidaries of Hong Leong Holdings, and to include estimated breakeven price from ZACD Group director Nicholas Mak.
Singapore property developers GuocoLand and Hong Leong Holdings are stakeholders in a joint venture company that has paid $980 million for the 290-unit Pacific Mansion at River Valley Close. The development occupies a freehold site of 128,352 sq ft.
The land cost translates to $1,806 psf ppr, based on the maximum allowable gross floor area of 542,544 sq ft, which takes the verified existing gross floor area of 493,222 sq ft and plot ratio of 3.84, and factors in an additional 10% balcony area. There are no development charges due to Pacific Mansion’s high development baseline.
Aerial view of the Pacific Mansion site, with Martin Modern under construction across the road (Credit: CBRE)
Nicholas Mak, ZACD Group's director, estimates the breakeven price to range between $2,520 psf to $2,600 psf.
Owners of the 288 apartments at Pacific Mansions are expected to walk away with $3.26 million to $3.48 million, while the two shop unit owners are expected to receive $2.2 million to $4.5 million in gross proceeds.
“Pacific Mansion drew strong interest from local and foreign developers,” comments Galven Tan, CBRE’s director of capital markets, who brokered the sale. “It is testament to the attributes of the sprawling freehold site in the heart of District 9, in proximity to the Orchard Road shopping belt and the upcoming Great World MRT station,” adds Tan.
GuocoLand holds a 40% stake in the JV, while Intrepid Investments and Hong Realty, subsidiaries of Hong Leong Holdings, hold a 40% and 20% stake respectively.
Scale model of Martin Modern, which GuocoLand launched in July 2017 (Credit: Samuel Isaac Chua/The Edge Singapore)
Across the road from Pacific Mansion is the 450-unit Martin Modern. GuocoLand bought the Martin Place site in a Government Land Sales (GLS) tender for $595 million, or $1,239 psf per plot ratio. This set...