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"I am a BLOGGER NOT an expert. This is a BLOG not a 'go-to' website for official information. I represent no one's view save my own. I have neither legal nor financial training, nor do I have anything to do with the real estate industry. My understanding of the Collective Sale Process is from a layman's position only. My calculations, computations and tables are homespun and may contain errors. Please note that nothing in this blog constitutes any legal or financial advice to anyone reading it. You should refer to your lawyer, CSC or financial adviser for expert advice before making any decision. This disclaimer is applicable to every post and comment on the blog. Read at your own risk."
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There is one thing worse than an Enbloc ----- and that is an Enbloc done badly. Since the majority have the necessary mandate to sell, then they owe it to all SPs to make a success of it. Minority SPs can only watch and wait, if they sell then lets pray it's at a price we can move on with, if they don't sell, then we are happy to stay for a few more years.

PINE GROVE

Pine Grove to en bloc, $1.7b reserve price: report 
THE 99-year leasehold Pine Grove in Ulu Pandan could be up for collective sale again with an estimated reserve price of US$1.7 billion, said Channel NewsAsia yesterday.
The deal, if successful, would be the largest in the collective sales market since Farrer Court changed hands for US$1.34 billion in 2007.
Channel NewsAsia said that property agents have been gathering residents' signatures since November last year, and they have amassed 80 per cent of votes for the collective sale to start. A cooling period is now in place in case residents change their minds.

The 660-unit Pine Grove is a former HUDC estate. Several discussions had taken place between agents and residents to sell the estate in the last few years. The en bloc fever was particularly strong in 2007 as the property market heated up and developers snapped up several estates. But not all residents in Pine Grove were keen on a deal then. A 'Save The Pine Grove' group was even formed to stop the sale process.
The collective sales market took a breather during the financial crisis and has revived recently, but deals have involved mostly smaller estates with more affordable price tags.
Business Times - Fri 19 Nov 2010

Pine Grove residents may be sitting on an enbloc gold mine, but analysts have said realising the dream of a collective sale may be fraught with hurdles.
With a hefty asking price of S$1.7 billion and with more land sites launching soon, developers may pass on the 660-unit property.
Situated along Ulu Pandan Road, Pine Grove has an 80 per cent approval for its third enbloc tender.
And with its location in the prestigious district 21, analysts said an iconic mid-tier to luxury residence complex is an obvious choice.
But creating opulent luxury in a sprawling 890,000-square foot property may be too costly for investors.
Colin Tan, Head of Research and Consultancy at Chesterton Suntec International, said: “If I am the developer, I would be going for big units. The problem is not the dollar per square foot, it is the quantum. The absolute amount may go into millions, so how many individuals can really afford that amount or are willing to risk it just on one project?”
Analysts said Pine Grove’s gross plot ratio of 2.1 will yield too few units for developers to maximise their returns.
By comparison, Laguna Park, with an enbloc reserve price of S$1.14 billion, offers a plot ratio of 2.8.
But despite the red flags, analysts said developers with a longer-term view could look favourably at Pine Grove.
Christina Sim, Director of Investment Capital Markets at Cushman & Wakefield, said: “Our Singapore market is so small and so responsive to external stimulus. And there is also a huge foreign demand out there. It is ideal if a developer buys this maybe for land banking, because the truth is if you take a mid- to long-term view of the real estate market in Singapore, nothing is really very expensive now.”
However, with more land being released under the Government Land Sales (GLS) programme, developers are currently spoilt for choice.
The tendering for such land sites is also more straightforward, compared with enbloc tenders.
Ms Sim said: “Certainly for collective sales, the gestation period and the time to have 100 per cent ownership is certainly very long, unlike those developers going for GLS sites; they bid for the site, prepare for it and sell.”
However, analysts said Government land sites no longer offer the prime location and massive size that Pine Grove has.
Source : Channel NewsAsia – 19 Nov 2010

Pine Grove gets 80% vote for en bloc

It could be third time lucky for Pine Grove estate along Ulu Pandan Road.
MediaCorp understands that the condominium’s third attempt at an en bloc sale received the necessary 80 per cent majority approval last Saturday.
According to residents, the reserve price is set at S$1.7 billion, setting the stage for Pine Grove to become Singapore’s largest residential collective sale, beating the 2007 record for Farrer Court.
“It’s a good time to sell because the estate is getting old, and it will be expensive to upgrade the old lifts, sewerage pipes and wiring in future,” said a resident, who declined to be named.
The next stage of the en bloc attempt is the preparation of tender documents, but the votes have to be first audited by the appointed law firm Lee & Lee.
There is also a “cooling off” period where residents who had signed can withdraw their consent to sell within a week.
MediaCorp understands that Jones Lang LaSalle, which is the marketing agent, is unlikely to launch a sale this year, and will likely wait for more favourable market conditions.
“Since 2008, most en bloc sales have been less than S$100 million,” said Nicholas Mak, Executive Director of Research and Consultancy, SLP International. “This shows that developers are now more cautious and the risk appetite is not so high.”
Analysts believe that potential buyers are likely to take a consortium or joint-venture route so as to spread the risk.
A collective sale also faces challenges from a successful Government Land Sales programme.
“Developers sometimes prefer the straight forward government sale of sites,” said Donald Han, vice chairman, Cushman & Wakefield, Singapore. “The collective sale process on the other hand can become protracted.”
Signatures for the sale have been collected from Pine Grove owners over various sessions since 15 November 2009.
The reserve price of S$1.7 billion could work out to between S$2.1 million and S$2.75 million per unit, depending on the size of the apartment and the development charge.
There are 660 units at the former HUDC estate, which covers over 893,000 square feet of land area.
The current record for an en bloc sale is held by Farrer Court, located along Farrer Road, also a former HUDC estate. It was sold in 2007 for S$1.34 billion, and had a development charge of about S$500 million.
Observers said Pine Grove could attract a similar development charge.
Source : Channel NewsAsia – 16 Nov 2010

1 comment:

  1. Farrer Court Part 2?
    I wish them success. PG is in a prime area so I think there will be interest from developers. Was the psf ppr published?

    ReplyDelete