Tuesday, April 18, 2006
Ex-HUDC estate Waterfront View up for sale
The 583 owners are asking for $380 million, or $650,000 each
By Joyce Teo
Property Correspondent
ONE of the largest collective sale deals ever is on the cards after the huge former HUDC estate Waterfront View went out for tender at $380 million.
 MASSIVE DEAL: Waterfront View spans an area of 809,037 sq ft and can accommodate about 1,400 apartments with an average size of 1,300 sq ft, according to DTZ Debenham Tie Leung. -- THE NEW PAPER |
If the price is met by the May 26 close, the 583 owners in the estate near Bedok Reservoir will get about $650,000 each - over 60 per cent above the market price.
The owners have reduced their asking price from the $450 million quoted at an expressions-of-interest exercise that closed last November.
They received one written offer from a listed developer and two verbal offers, all below their asking price.
That was also before the estate's keen sellers tried to get enough signatures to agree to the sale. The required 80 per cent consensus from the estate was reached last Friday.
The owners' reserve price is understood to be $370 million, about $635,000 per unit.
Their $380 million price tag excludes an estimated differential premium of about $102.2 million for the upgrading of lease tenure to 99 years.
The 809,037 sq ft site area can accommodate about 1,400 apartments with an average size of 1,300 sq ft, said DTZ Debenham Tie Leung, which is handling the sale .
One owner paid about $600,000 for his home a decade ago but is keen to sell: 'I am getting so much more than the market.' Waterfront View homes would fetch about $380,000 each now.
'Although the owners may appear to get a huge premium of at least 60 per cent, (it) is barely enough to buy a brand new condo in the same area, but they can easily buy an older one,' said Knight Frank research director Nicholas Mak.
Nearby Clearwater condominium's bigger 1,378 sq ft units recently sold for $550,000 to $575,000 each, he said.
Waterfront View is one of many collective sale sites that have hit the market since January following a record 2005.
Credo Real Estate said 19 collective sale deals worth about $1.62 billion have been sealed so far this year.
Last year, about $2.2 billion worth of deals were done.
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// posted by Shajahan @ 10:56 AM 