EAST Coast condominium Laguna Park was put up for collective sale on Wednesday with a hefty price tag of $1.2billion - potentially the second highest price ever here for such a deal.

The sprawling 30-year-old condominium has been in the headlines over a spate of vandalism attacks on residents who were not keen on the sale. Despite its troubles, the estate attained the crucial 80per cent consent level from its owners last December.

But the tender exercise was put on hold until now 'as major developers have only recently returned to the land market with confidence', said its marketing agent Credo Real Estate. If it succeeds in finding a buyer, Laguna Park will be the second billion-dollar en bloc deal here, after the 618-unit Farrer Court was sold to a CapitaLand-led consortium for $1.34billion in 2007.

Laguna's entry on the market marks a milestone in the estate's troubled path towards a collective sale that was made highly public due to incidents of vandalism which hit the estate last year.

Residents who spoke to The Straits Times on Wednesday said the estate's once-peaceful atmosphere has begun to return.

At the current price, most owners will receive $2.1million to $2.3million, while the penthouses will fetch between $3.5million and $4.1million, said Credo.

This price, which works out to about $1,300 to 1,400 psf depending on the unit size, is double the price such units have been fetching in recent months - about $682 psf- even in the bullish market.

Like Farrer Court, Laguna Park is a former HUDC estate; it is located in Marine Parade and was privatised in 2007. The condominium has a land area of about 677,493 sq ft and a gross plot ratio of 2.8.

Credo deputy managing director Tan Hong Boon estimates that the buyer could build about 1,500 new apartments with an average size of about 1,200 sq ft. The land price for the condominium, which has 67 years left on its lease, works out to about $844 per sq ft per plot ratio, including the $400million payable.

At this price, the successful purchaser could break even at about $1,200 to $1,250 psf, with a view of pricing the new units at $1,400 to $1,600 psf, said Mr Tan. The tender closes on Oct13 at 3pm.

Read the full story in Thursday's edition of The Straits Times

jcheam@sph.com.sg