Collective sales make blockbuster comeback

Collective sales make blockbuster comeback
The Shunfu Ville offer is the third-largest collective sale price on record. The sale is still pending approval.
PHOTO: The Straits Times

Top residential property deals

NOUVEL 18 

Value: $965.4 million

To avoid hefty penalties over unsold units at the Orchard Road condominium, City Developments (CDL) worked out a complex financial deal in October.

It sold its stake in the project via a profit participation securities scheme, which involved equity shares worth $102 million that were reportedly taken up by 14 high net-worth investors, including Osim founder Ron Sim and Fragrance Group boss Koh Wee Meng.

The rest of the deal was made up of bank borrowings and bonds.

The deal allowed CDL to avoid penalties under Qualifying Certificate rules, which would have caused it to take a $38 million hit in the first year, jumping to $76 million in the second year.

SHUNFU VILLE

Value: $638 million

Developer Qingjian Realty's purchase of one of the priciest collective sale sites in May enlivened the collective sales market here, said analysts. The offer is the third-largest collective sale price on record, although Qingjian secured the site well below its reserve price of $688 million. The sale is still pending High Court approval, after objections from five unit owners.

RAINTREE GARDENS

Value: $334 million

Many unit owners of the 175-unit privatised HUDC estate in Potong Pasir reportedly pocketed about $1.9 million per unit - a premium of almost 90 per cent over the last transaction price of about $1.1 million this year.

The top three bids for the 201,405 sq ft site, which was won by a joint venture of UOL Group and United Industrial Corporation, were separated by about 1 per cent.

SIGLAP ROAD

Value:$624 million

A rare condominium site in Siglap Road near East Coast Park and Victoria School is the project to watch next year, said analysts.

Read also: Investors confident of S'pore's long-term potential

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Looking back: Property in flux


This article was first published on Dec 22, 2016.
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