Property analysts had predicted that it was not likely to happen, but the local real estate market has just witnessed its first collective sale to bust the billion-dollar mark.
CapitaLand yesterday got the nod to buy Farrer Court collectively for $1.3388 billion, and plans to transform the ageing HUDC estate into a luxurious condominium with the help of partners including Hotel Properties (HPL).
The transaction price is below the $1.5 billion that the 618 homeowners had asked for.
Still, each seller is in line to receive between $2.122 million and $2.238 million, based on their apartment sizes ranging from 1,453- to 1,615 sq ft.
The owners have also been given the first right of refusal to buy the new homes that CapitaLand plans to build. This means they will be invited to a preview launch of the new development slated to be launched in the first half of 2009.
CapitaLand’s grand plans for the 838,488-sq-ft site will include partners: HPL, Wachovia Development Corp and possibly a foreign fund, said Ms Patricia Chia, chief executive of CapitaLand Residential Singapore.
Together, hey will build a luxury 36-storey condominium with 1,500 units — more than doubling the number of apartments on the existing site located at the corner of Leedon Heights and Farrer Road.
The project promises to be “a unique landmark project” created by “world-renowned architects who have an international portfolio”, said CapitaLand Group chief Liew Mun Leong.
Each consortium member will own part of a joint venture named Morganite. HPL said its stake would be between 20 and 30 per cent.
The deal works out to $762 to $783 per square foot per plot ratio, after taking into account the differential premium of $450 million to $500 million to refresh the lease to a 99-year tenure and to maximise the plot ratio to 2.8.
With the approval of the Strata Titles Board, the transaction is expected to be completed by the second quarter of next year.
Source: Today, 29 June 2007
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