THE buzz about privatised HUDC estates going en bloc is dying down, with the tenders for two such estates closing recently without a single bid from developers.
Minton Rise in Lorong Ah Soo and Gillman Heights in Depot Road both failed to attract bids when their collective sale tenders closed in August.
Kheng Leong, a privately-held investment vehicle of United Overseas Land's Mr Wee Cho Yaw, has since made a $189 million offer for Minton Rise. This is about $20 million below Minton's asking price.
It is also well below the $250 million the 342-unit estate demanded when it first tried for a collective sale late last year. When the tender closed for that in January, Minton Rise had garnered just one bid - of about $184.7 million from Frasers Centrepoint - which its owners rejected.
Gillman Heights, meanwhile, has still 'not received a firm offer from any purchaser', as a letter sent to the estate's residents last Tuesday explained.
Property consultants said the lacklustre interest in these estates could be due to their large sizes and 99-year leasehold tenures.
Developers may be reluctant to take on such massive projects, which would require a huge capital outlay, including a fee to top up the leases of the 20-year-old sites back to 99 years, said experts.
Minton Rise is about 472,379 sq ft, while the 607-unit Gillman Heights is a whopping 836,425 sq ft and carries a record $529 million price tag.
The two sites were put on the market following the successful sales of Amberville in Katong and Waterfront View in Bedok earlier this year. These were the first privatised HUDC estates to be sold en bloc.
The Straits Times understands that a developer has expressed interest in Gillman Heights, but a formal offer has yet to be made as the suggested price is about 15 per cent below the estate's reserve.
But even the $189 million offer for Minton Rise looks unlikely to be accepted by the estate's owners, said sources.
They noted that the original asking price of $209 million barely managed to garner backing from 80 per cent of the owners - the minimum level of consent required for a sale.
The lower price would likely entice even fewer owners to agree, they added.
So far, just over half the required 80 per cent of Minton Rise owners have agreed to sell the estate to Kheng Leong since they were told of the offer last Tuesday, said Mr Sam Tan, chief executive of NRA Real Estate, which is marketing both Minton Rise and Gillman Heights.
fiochan@sph.com.sg
