Chuan Park gets $860m offer to sell en bloc

The collective sale committee (CSC) of Chuan Park condominium, a 99-year leasehold project in Lorong Chuan, has received an expression of interest (EOI) from a developer for $860 million, below its reserve price of $938 million.

Marketing agent ERA Realty, in a June 17 letter seen by The Straits Times, urged owners of the 446-unit condo to sign the supplemental joint agreement by June 26 so that the CSC can start negotiations with the developer.

"The earlier we can achieve the 80 per cent mandate, the earlier the CSC can enter into negotiations with the developer on the terms and conditions of the sale and purchase (S&P) agreement for the estate," ERA Realty said.

Based on the EOI offer, owners now stand to receive $1.12 million for a 710 square foot (sq ft) residential unit to about $2.45 million for a 2,045 sq ft unit. Commercial unit owners will get about $1.05 million for a 474 sq ft unit and $1.94 million for a 1,238 sq ft unit.

Chuan Park was relaunched for sale in March this year at the same reserve price of $938 million, and went into private treaty negotiations after the tender closed on April 26. Prior to that, it was put up for tender from Oct 5 to Nov 18, 2021, just before the latest property cooling measures in December.

At $938 million and with no development charge payable, the land rate, including an upgrading premium of $192.62 million, works out to $1,256 per square foot per plot ratio (psf ppr).

The 37,216 square metre site has a gross plot ratio of 2.1, with a proposed gross floor area (GFA) of 78,153 sq m. The site, located near Lorong Chuan MRT, can be redeveloped into 900 units.

According to Cushman & Wakefield, five residential developments were sold en bloc for $447.7 million in the first six months this year, compared with four deals totalling just $93 million in the same period last year.

For the whole of last year, eight residential collective sale deals totalling $1.17 billion were done.

Mr Wong Xian Yang, head of research at Cushman & Wakefield, cited the $273.89 million sale of Lakeside Apartments for the jump in residential collective sale deal value so far this year.

He said the robust response to new private home launches in the face of declining unsold inventory and continued growth in home prices could drive more developers to land-bank via the en bloc market. "In May, new home sales reached 1,356 units, double that of April. More projects are expected to launch for collective sale to ride on current sentiment," he added.

Meanwhile, 160-unit Park View Mansions in Yuan Ching Road is trying its luck for a second time to sell en bloc with a guide price of $260 million. The tender will close on July 27 at 2pm.

Owners stand to get $1.5 million for the 1,119 sq ft units, $1.58 million for the 1,313 sq ft units and $1.6 million for the 1,335 sq ft units.

The 99-year leasehold condo's previous attempt at $320 million failed in 2018. At $260 million, the land rate works out to $1,023 psf ppr, including the estimated differential premium and lease top-up to a fresh 99 years.

Built in the 1970s, the development sits on a land area of 191,974 sq ft and is zoned for residential use with a gross plot ratio of 2.1. It can be redeveloped to a GFA of up to 403,145 sq ft.

"The future development can be rebuilt into an upscale 20 to 24-storey condominium project of over 440 units, assuming an average apartment size of 915 sq ft," said Mr Jeremy Rikas Chiu, group division director, ERA Realty.

"We expect a strong market demand for the new project at the Park View Mansions site, given its prime location which commands unblocked views of Jurong Lake Gardens, Lakeside Garden and Jurong Lake," he added.