Eunosville seeks $688m in collective sale bid

SINGAPORE'S collective sale market is showing signs of taking off again with two sales this week and now a bid to sell a former HUDC estate in Eunos for $688 million.

If successful, this would be the largest collective sale in six years.

The 330-unit Eunosville, in Sims Avenue, which was privatised in 2011, is making its maiden attempt at a collective sale.

The asking price works out to a unit price of $799 per sq ft (psf) per plot ratio (ppr). This is after taking into account $155 million payable to the Government to top up the lease from about 74.5 years to 99 years, and for intensification of the site's use, said marketing agent Jones Lang LaSalle (JLL).

This week, two smaller collective sales have gone through. Developer Tuan Sing bought Gilstead Court in the exclusive Novena-Newton area for $150.2 million and Yi Mei Garden in Tampines Road was sold to Roxy-Pacific Holdings for $136 million.

Another large collective sale, of Thomson View to Wee Hur Holdings for $590 million, inked in September last year, has now hit a legal snag.

Mr Karamjit Singh, head of investments and residential at JLL, said the required 80 per cent of owners at Eunosville had given their consent to the collective sale this month, leading the sales committee to launch the tender now.

Over the past six years, other privatised HUDC estates that have been sold en bloc include Gillman Heights, at $548 million, Waterfront View, at $385 million, Minton Rise, at $342 million, and Amberville, at $183 million.

Eunosville may be shaping up as a large collective sale but it falls short of 618-unit Farrer Court, sold for $1.34 billion in 2007.

"It is not often that a privatised HUDC estate is launched for collective sale, largely due to the sheer size of such estates," said Mr Tan Hong Boon, JLL's regional director of investments.

He said only eight such estates had been launched for sale en bloc since 2006, of which five had sold.

However, Mr Singh added that developers will be keen on the site as the total investment for Eunosville is under $1 billion, while the absolute land value of most similar projects tends to be higher.

Mr Tan said developers have the option of dividing the plot into two or more parcels, and can expect to sell units for about $1,450 psf to $1,650 psf, based on an estimated break-even price of $1,200 psf.

Home owners of Eunosville can expect to receive sales proceeds of more than $2 million each, based on the asking price.

The 376,712 sq ft plot has been earmarked for residential use, and can yield about 1,000 units averaging 1,100 sq ft each, said JLL.

The development consists of four low-rise blocks, each four storeys high. It also has two nine- storey blocks, two 11-storey blocks and two 13-storey blocks. Located opposite Eunos MRT station, Eunosville is one stop away from the upcoming Paya Lebar Commercial Hub. It was built in the late 1980s by the HUDC.

Mr Singh said the prospects for collective sale properties depend on location and other factors.

He said: "It's an en bloc market where when there are good-value, well-priced and well-located properties, there will be ample takers for it. Where en bloc (sites) are priced unrealistically or don't have key attributes, they may struggle to find buyers."

The tender for Eunosville closes on July 24.

ocheryl@sph.com.sg

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