Tampines Court being sold for $405m: sources

Tampines Court being sold for $405m: sources

Far East, Frasers Centrepoint team up to buy privatised HUDC estate

By KALPANA RASHIWALA

(SINGAPORE) Frasers Centrepoint and Far East Organization are teaming up to buy Tampines Court, a privatised HUDC estate, through a $405 million collective sale, BT understands.

The price works out to about $260 per square foot of potential gross floor area, including development charges and a premium to upgrade the site's lease to 99 years from a remaining term of 79 years.

The purchase of the 702,162 sq ft site is subject to approval by the Strata Titles Board (STB). The land is zoned for residential use with a 2.8 plot ratio - the ratio of potential maximum gross floor area to land area. It can be potentially redeveloped into a new condominium with about 1,580 units averaging 1,300 sq ft.

Market watchers reckon that given the huge size of the plot, Far East and Frasers Centrepoint will most likely develop it in phases.

This is the second time the property heavyweights are teaming up for an acquisition. In their maiden tie-up in May last year, they signed a deal to buy Waterfront View, a privatised former HUDC estate facing Bedok Reservoir, for $385 million. This reflected a price of $241 psfper plot ratio.

The purchase was approved by the STB last month. But a couple who own a unit there are appealing against the ruling in the High Court.



Tampines Court comprises an existing development of 560 units. It is on a site with a lease of 101 years that started on Dec 1, 1985. The sale of Tampines Court was brokered by Dennis Wee Group, with Phang & Co representing the majority owners.

Far East and Frasers Centrepoint were among the biggest property buyers in Singapore last year. Far East, controlled by Ng Teng Fong, put about $1.6 billion of acquisitions under its belt, including the former Glutton's Square site, Angullia Mansion and Amberville.

Frasers Centrepoint is a fully-owned unit of listed Fraser & Neave, whose group chief executive Han Cheng Fong partnered Mr Ng's Far East group in Singapore and China during the previous property bull market in the 1990s when Dr Han was at the helm of DBS Land.

Last year Frasers Centrepoint bought over $800 million of properties in Singapore including Far East Mansion and a site near Novena MRT Station.