Park View Mansions sold to Chip Eng Seng, KSH, SingHaiyi for S$260m
Park View Mansions sold to Chip Eng Seng, KSH, SingHaiyi for S$260m. On Thursday, delisted SingHaiyi Group, mainboard-listed real estate firms Chip Eng Seng and KSH Holdings, and the 160-unit Park View Mansions were all agreed to by a joint tender for S$260 million (July 28). Participants in the joint venture, which consists of Sing-Haiyi Pearl, TK 189 Development, an indirect owned and linked company of KSH Holdings, and Chip Eng Seng’s arm, CEL Development, will develop the property into a residential complex with up to 440 residential units.
In addition to pledging to form a joint venture to purchase and develop the property, all three joint tenderers also agreed to sign a memorandum of understanding that divides participation interest in the acquisition into portions of 40%, 30%, and 20% for CEL, Sing-Haiyi Pearl, and TK 189, respectively. The joint tenderers have already paid a fee as part of the tender fee of $100,000 as of Thursday. According to a joint statement from the three property players, this sum will later be included in the purchase price of the property.
Chip Eng Seng and KSH both stated that they will use internal cash resources to pay for the acquisition, however KSH added that it would also use external borrowing to pay for its contributions. The two said that they didn’t expect their participation in the joint venture to have a significant impact on net tangible assets or earnings per share for the current fiscal year.
The maximum authorized gross floor area for Park View Mansions on Yuan Ching Road is 37,453.08 square meters with a permitted plot ratio of 2.1 and a total land area of 17,834.8 square meters. About 53 years remain on the 99-year leasehold, which started on October 1, 1976. Prior to being put up for a third collective sale last month with an asking price of S$260 million, it had previously been put up for two en bloc launches.
According to marketing firm ERA Realty, the price equates to a land charge of S$1,023 per square foot per plot ratio. The projected differential premium that will be required, subject to JTC and the Urban Redevelopment Authority’s planning clearance, to top up the existing lease to a new 99-year term and maximize the site’s development plot ratio of 2.1 is included in the land rate.
The businesses stated that they will release further information after the acquisition is finished. The three property plays have previously worked together on a project. Their most recent joint endeavor featured a S$650 million offer for the development of Peace Centre and Peace Mansion, which would have been the largest collective sale in 2021.
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