Singapore-listed Chip Eng Seng, KSH Holdings and SingHaiyi Group have teamed up in a joint tender to acquire Park View Mansions for S$260 million.
Earlier this week, Euro-Asia Apartments at Serangoon Road was sold to KSH Ultra Unity Pte Ltd, an indirect subsidiary of KSH Holdings, for S$222.18 million, above its guide price of S$218 million.
The joint venture was split by different percentages among the three companies:
- CEL Development, Chip Eng Seng’s wholly-owned subsidiary – 40%
- Sing-Haiyi Pearl, a 50/50 joint venture SingHaiYi Group and Haiyi Holdings – 30%
- TK 189 Development, a subsidiary held by Kim Seng Heng Realty and Ho Lee Group – 30%
The deal closed a month after the condo was launched for collective sale via public tender on June 20, with the tender granted on July 28, 2022.
As of July 28, a tender fee of S$100,000 has already been paid, which makes up part of the property’s purchase price.
Stronger together
It’s not their first joint venture together – the three partners bagged the collective sale of Peace Centre and Peace Mansion last December at a guide price of S$650 million.
Developers enter a joint venture for strategic reasons: the ability to pool resources and diversify their risk. They can also tap on each other’s expertise and experience.
In the case of Park View Mansions, the developers have established a good working relationship forged through past and ongoing projects.
Current macroeconomic factors were taken into consideration, such as the skyrocketing interest and inflation rates, geopolitical tensions from the Russia-Ukraine conflict and, of course, not forgetting the pandemic.
Such factors introduce challenges in the already tricky property landscape, such as construction delays due to manpower shortage, delays in the delivery of building supplies and higher costs as a result of the disruptions.
440 units in the works
Park View Mansions sits on a residential-use-zoned site spanning around 191,972 sqft with a gross plot ratio (GFA) of 2.1. This translates to a maximum floor area of 403,141 sqft.
Given its price of S$260 million, the land rate works out to be S$1,023 psf ppr, which includes a lease refresh to 99 years and a differential premium to maximise the area’s plot ratio. The approval is subject to the Jurong Town Council (JTC) and URA’s requirements.
The completion of the acquisition is dependent on a few factors:
- All the unit owners consenting to the collective sale, or a statutory sale order approving the collective sale
- Written approval from the President of the Republic of Singapore and the Jurong Town Corporation
Redevelopment plans are in the works to turn the condo into a mid-sized new development consisting of 440 units, more than 2.7 times its current 160 units.
Park View Mansions
Built in 1988, the 99-year lease Park View Mansions is adjacent to the expansive Jurong Lake Gardens, along Yuan Ching Road.
It’s located in District 12 of Jurong East, in the same neighbourhood as the upcoming Jurong Lake District (JLD).
With JLD poised to be Singapore’s Central Business District (CBD) and an integrated tourism hub underway, future residents can look forward to a vibrant injection of new amenities and business and education hubs.
Connectivity
While the current public transport connectivity is sorely lacking, the JLD development will introduce two new train lines: the Jurong Region Line and Cross Island Line, which will be fully operational in 2029 and 2030s, respectively.
Currently, the nearest MRT station is Lakeside MRT, a less than desirable 17-minute walk away.
Major highways, Ayer Rajah Expressway (AYE) and Pan Island Expressway (PIE), are a 10 to 15-minute drive away.
Schools
Parents need not fret – there are education options aplenty in the vicinity.
- Jurong Secondary School (386m)
- Lakeside Primary School (991m)
- Fuhua Primary School (1289m)
- Shuqun Primary School (1670m)
- Yuan Ching Secondary School (1106m)
- Fuhua Secondary School (1546m)
- Yuhua Secondary School (1590m)
- Shuqun Secondary School (1788m)
Are you excited about the new development? Let us know in the comments section below.
If you found this article helpful, check out What determines the value of an en-bloc property? and 7 reasons why a collective sale tender fails.
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