Park House breaks en bloc price ceiling

By
/ EdgeProp Singapore
|
June 13, 2018 10:11 PM SGT

At $2,910 psf ppr, this latest collective sale price for the prime Orchard Road site is the highest so far

Two blocks from St Regis Singapore, where North Korean leader Kim Jong-un stayed for the historic summit with US President Donald Trump, a milestone of a different sort was set. It was the collective sale of Park House, a 15-storey building located at the corner of Tomlinson Road and Orchard Boulevard. The tender for the building closed on May 31, and the deal was sealed at 12.30am on June 1. The purchase price was $375.5 million, a 21.9% premium to the guide price of $308 million when the site was launched for sale on April 23.
The buyer of Park House is said to be Hong Kong-listed Shun Tak Holdings, the company founded by Macau gaming tycoon Stanley Ho. It has a market capitalisation of HK$10.88 billion ($1.85 billion). Now 95, Ho stepped down as chairman of the firm in June 2017, and was succeeded by his daughter, Pansy Ho.
Park House achieved a record en bloc price of $2,910 psf ppr (Credit: CBRE)
Shun Tak’s purchase price of $375.5 million translates into a record breaking $2,910 psf per plot ratio (ppr) for a collective sale. Jeremy Lake, CBRE managing director of capital markets, who brokered the sale of Park House, also brokered the last record-breaker — the former Hampton Court for $155 million ($2,526 psf ppr) in January 2013 The buyer was Hong Kong-listed, British conglomerate Swire Group’s Swire Properties.
Roll of the dice
Park House marks Shun Tak’s first purchase of a residential property development site in Singapore but its third property investment in the city state. So far, Shun Tak’s preference has been in the prime Orchard Road neighbourhood.
The first acquisition was in August 2016, when Shun Tak purchased the bungalow at 9 Cuscaden Road for $145 million, or $2,145 psf ppr. The deal was brokered by JLL. The bungalow at 9 Cuscaden Road is behind Tanglin Shopping Centre, which is adjacent to St Regis Singapore, and near other luxury hotels such as The Regent Singapore and Four Seasons Hotel.
In its FY2017 annual report, Shun Tak says...