SingHaiyi snags Clementi site for $841m

SingHaiyi Group is acquiring the residential site of Park West at Jalan Lempeng.
SingHaiyi Group is acquiring the residential site of Park West at Jalan Lempeng.PHOTO: HUTTONS ASIA PTE LTD

SINGAPORE - It is third time lucky for owners of Park West.

Developer SingHaiyi Group has snagged the residential site in Clementi for $840.9 million amid the ongoing en bloc sale fever.

Park West is located at Jalan Lempeng, near Clementi MRT station.

It is being acquired by Sing-Haiyi Gold, a 50-50 joint venture between SingHaiyi's wholly owned subsidiary SingHaiyi Land and Haiyi Wealth, an entity controlled by Gordon Tang and Celine Tang, SingHaiyi said in a statement late on Thursday (Jan 11).

The husband-and-wife duo are also controlling shareholders and directors of SingHaiyi through Haiyi Holdings.

Park West is a 99-year-leasehold estate occupying a land area of about 633,644 sq ft, with a plot ratio of 2.1. Its lease commenced on March 8, 1982.

Marketing agent Huttons Asia said the site can yield about 1.33 million sq ft of gross floor area upon redevelopment.

At $840.9 million plus an estimated $290.6 million in differential premium and lease upgrading premium, the price tag works out to a land cost of $850 per sq ft per plot ratio.

Huttons Asia said the successful transaction is the third attempt at a collective sale by the property owners.

Mr Terence Lian, head of investment sales, Huttons Asia, said the regular shape plot of land offers good redevelopment opportunity given its strategic location. The land is near the One-North R&D Park and Singapore's second Central Business District at Jurong Lake.

"We expect there to be strong demand for the new project judging from the high popularity of nearby projects such as The Trilinq and The Clement Canopy," Mr Lian said.

The buyer intends to apply to the Singapore Land Authority for the grant of a fresh 99-year lease for the property, and to lift certain title restrictions.

SingHaiyi said the latest acquisition gives it access to a land site within an established residential area, and allows the firm to expand its development portfolio in Singapore.

The deal comes as the property developer in December moved to raise some $143 million for property investments through a rights issue.

It proposed a renounceable non-underwritten rights issue of up to about 1.44 billion new shares at 10 cents each, to be issued on the basis of one rights share for every two existing shares.

Majority shareholder Haiyi Holdings, which has a 56.17 per cent stake in SingHaiyi, has committed to subscribe for not only its pro-rata entitlement of 806 million rights shares, but also to mop up any rights shares that are not taken up.