Tampines Court gets $970m collective sale offer

Former HUDC estate Tampines Court at Tampines Street 11.
Former HUDC estate Tampines Court at Tampines Street 11. ST PHOTO: LIM SIN THAI

It is likely to be third time is the charm for home owners at Tampines Court, after an offer lodged above its reserve price of $960 million set it up for a collective sale.

The bid could finally clinch the sale of the former Housing and Urban Development Company (HUDC) estate, which has failed in two earlier attempts to conclude a deal to sell en bloc.

Mr Terence Lian, head of investment sales at Huttons Asia, indicated that a bid had come in at $970 million but that the collective sale committee was still evaluating the bid as there were some conditions attached to the deal.

If it goes through, it will be the biggest collective sale of a former HUDC property since Farrer Court went for $1.34 billion in 2007.

Each home owner at Tampines Court is likely to walk away with between $1.7 million and $1.75 million from the sale.

The estate in Tampines Street 11 sits on a sprawling 702,000 sq ft site with about 69 years left on its lease. There are 560 units from 1,658 sq ft to 1,733 sq ft ranged across 14 blocks.

Tampines Court attempted a collective sale in 2008 for $405 million, but it was dismissed by the Strata Titles Board. In 2011, it failed to obtain the required level of approval from 80 per cent of the owners.

 

The collective sale market has been powering head amid more positive sentiment and developers' hunger for sites.

Word on the market is that at least four former HUDC developments have started the collective sale process.

Six collective sale transactions - Serangoon Ville, The Albracca, One Tree Hill Gardens, Goh & Goh Building, Rio Casa and Eunosville - valued at $2.1 billion have already been done so far this year, surpassing the three deals worth $1 billion for all of last year.

Lee Xin En

A version of this article appeared in the print edition of The Straits Times on August 16, 2017, with the headline 'Tampines Court gets $970m collective sale offer'. Print Edition | Subscribe