<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published September 3, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Laguna Park up for collective sale
More than 80% of owners consent to sale at a reserve price of $1.2b
By UMA SHANKARI
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(SINGAPORE) Laguna Park, a 528-unit ex-HUDC estate in Marine Parade, has just been officially put up for collective sale. More than 80 per cent of the owners have inked their consent to the collective sale agreement at a reserve price of $1.2 billion.
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</TD></TR><TR class=caption><TD>On the market: The 528-unit ex-HUDC estate in Marine Parade has a land area of about 677,493 sq ft and a gross plot ratio of 2.8 </TD></TR></TBODY></TABLE>The price works out to $844 per square foot per plot ratio (psf ppr), including an estimated total cost of about $400 million payable to the state for the increase in intensity of the site to the plot ratio of 2.8 and the topping up of the lease term to fresh 99 years.
Laguna Park has a land area of about 677,493 sq ft and a gross plot ratio of 2.8. The successful developer would be able to build close to 1.9 million sq ft of gross floor area or some 1,500 apartments with an average size of about 1,200 sq ft. Laguna Park is one of the few known sites that have successfully obtained majority owners' consent under the amended Land Titles (Strata) Act, which came into effect in October 2007.
'Although the 80 per cent consent was obtained in December 2008, the tender exercise was put on hold till now, as major developers have only recently returned to the land market with confidence,' said Tan Hong Boon, deputy managing director at Credo Real Estate, which is marketing the project.
Other analysts echoed this view. 'If you look at the past 12 months, right now is as good a time as any to launch the project,' said Ngee Ann Polytechnic real estate lecturer Nicholas Mak.
The collective sale market first came to life again earlier this year with the launch of Dragon Mansion on Spottiswoode Park Road - the first development to be launched for sale en bloc this year. Owners asked for $120 million for the freehold project, or $1,020 psf ppr including a development charge of about $400,000
But while the tender for that site closed last month, the property is yet to be sold, BT understands. If the reserve price for Laguna Park is met, most owners stand to receive sale proceeds ranging from $2.1 million to $2.3 million, while the penthouse owners will get between $3.5 million and $4.1 million each.
Credo also pointed out that if the site is sold, it could potentially be Singapore's second billion-dollar en-bloc deal. The largest sale price quantum achieved for a collective sale project to date is the 618-unit Farrer Court, which was also sold by Credo for $1.3388 billion in June 2007.
'At $844 psf ppr, the successful purchaser may work towards breaking even at around $1,200 to $1,250 psf, with a view of pricing the new units at $1,400 to $1,600 psf,' said Mr Tan.
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</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Laguna Park up for collective sale
More than 80% of owners consent to sale at a reserve price of $1.2b
By UMA SHANKARI
<TABLE class=storyLinks border=0 cellSpacing=4 cellPadding=1 width=136 align=right><TBODY><TR class=font10><TD width=20 align=right>
</TD><TD>Email this article</TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Print article </TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Feedback</TD></TR></TBODY></TABLE>(SINGAPORE) Laguna Park, a 528-unit ex-HUDC estate in Marine Parade, has just been officially put up for collective sale. More than 80 per cent of the owners have inked their consent to the collective sale agreement at a reserve price of $1.2 billion.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>On the market: The 528-unit ex-HUDC estate in Marine Parade has a land area of about 677,493 sq ft and a gross plot ratio of 2.8 </TD></TR></TBODY></TABLE>The price works out to $844 per square foot per plot ratio (psf ppr), including an estimated total cost of about $400 million payable to the state for the increase in intensity of the site to the plot ratio of 2.8 and the topping up of the lease term to fresh 99 years.Laguna Park has a land area of about 677,493 sq ft and a gross plot ratio of 2.8. The successful developer would be able to build close to 1.9 million sq ft of gross floor area or some 1,500 apartments with an average size of about 1,200 sq ft. Laguna Park is one of the few known sites that have successfully obtained majority owners' consent under the amended Land Titles (Strata) Act, which came into effect in October 2007.
'Although the 80 per cent consent was obtained in December 2008, the tender exercise was put on hold till now, as major developers have only recently returned to the land market with confidence,' said Tan Hong Boon, deputy managing director at Credo Real Estate, which is marketing the project.
Other analysts echoed this view. 'If you look at the past 12 months, right now is as good a time as any to launch the project,' said Ngee Ann Polytechnic real estate lecturer Nicholas Mak.
The collective sale market first came to life again earlier this year with the launch of Dragon Mansion on Spottiswoode Park Road - the first development to be launched for sale en bloc this year. Owners asked for $120 million for the freehold project, or $1,020 psf ppr including a development charge of about $400,000
But while the tender for that site closed last month, the property is yet to be sold, BT understands. If the reserve price for Laguna Park is met, most owners stand to receive sale proceeds ranging from $2.1 million to $2.3 million, while the penthouse owners will get between $3.5 million and $4.1 million each.
Credo also pointed out that if the site is sold, it could potentially be Singapore's second billion-dollar en-bloc deal. The largest sale price quantum achieved for a collective sale project to date is the 618-unit Farrer Court, which was also sold by Credo for $1.3388 billion in June 2007.
'At $844 psf ppr, the successful purchaser may work towards breaking even at around $1,200 to $1,250 psf, with a view of pricing the new units at $1,400 to $1,600 psf,' said Mr Tan.
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