The 175-unit Raintree Gardens residential development at Potong Pasir has been sold collectively to UVD (Projects), a joint venture company of UOL Group and United Industrial Corporation (UIC), said marketing agent JLL.
The sale price of $334.2 million works out to a land cost of about $797 psf per plot ratio on the potential gross floor area, inclusive of an estimated differential premium payable to the state to top up the lease to a fresh 99 years, and for redevelopment of the site to a gross plot ratio of 2.8.
More than 80 percent of the owners had consented to the en bloc sale, for which a public tender was launched on 1 September 2016 with a reserve price of $315 million.
Each homeowner will stand to gain around $1.9 million upon a successful sale, which is subject to certain conditions being met, including an order of sale by the Strata Titles Board or High Court.
Built in the late 1980s by the Housing and Urban Development Company (HUDC), the river-fronting Raintree Gardens comprises two 12-storey mansionette blocks and one seven-storey mansionette block, with a land area of approximately 201,405 sq ft. It was privatised in 2014.
The site is zoned residential under the 2014 Master Plan and could be redeveloped into a 600 to 748-unit waterfront condominium.
“The sale of Raintree Gardens brings the total value of successful en bloc sales in Singapore this year to $1 billion, with this being the third sale for the year,” said Karamjit Singh, International Director and Head of Residential at JLL.
“Earlier in May, JLL sold the 358-unit Shunfu Ville for $638 million, while the 14-unit Harbour View Gardens was sold in August for $33.25 million.”
Former Raintree Gardens (Enbloc)
|Developer||UVD (Projects) a joint venture company of UOL Group and United Industrial Corporation (UIC)|
|Location/Address||Potong Pasir Ave 1|
|Site Area||18,710.98 sqm / approx. 201,405 sqft|
|Total Units||750 residential units|
|Tenure||99 years leasehold|
|Expected TOP||2020 (TBC)|
|Expected Legal Completion||2023 (TBC)|
|Total No. Car parks||TBA|
Raintree Gardens launched for sale for at least $315m
A 175-unit river-fronting residential development in Potong Pasir was launched for sale on Wednesday (31 August), revealed sole marketing agent JLL.
Built in the late 1980s, Raintree Gardens is a former HUDC estate that was privatised in 2014. It sits on 201,405 sq ft of land and comprises one seven-storey and two 12-storey mansionette blocks. Under the 2014 Master Plan, the site is zoned for residential use and has a gross plot ratio of 2.8.
More than 80 percent of the development’s owners have consented to the collective sale, and are looking at offers in excess of the minimum price of $315 million. This translates to a land rate of approximately $759 psf per plot ratio on the potential gross floor area, factoring in the differential premium payable to the state to top up the lease to a fresh 99-year lease, and for intensification of the site.
At this rate, the estimated breakeven cost for the successful purchaser should be around $1,250 psf, with the new units expected to fetch around $1,450 psf.
Nicholas Ng, Local Director, Capital Markets at JLL said: “This site presents a unique offering as it enjoys a direct frontage of over 200 metres onto the Kallang River and could potentially be rebuilt into a 600- to 748-unit waterfront condominium.”
The site is close to Potong Pasir MRT station, as well as upcoming developments and amenities being planned at the nearby Bidadari estate, which include a bus interchange, two community malls and a 10ha park comprising the new Alkaff Lake.
Ng noted that Build-To-Order flats in Bidadari have been extremely popular among applicants due to their central location, with over 20,000 applications for 3,733 flats.
In a statement, JLL said the tender exercise for Raintree Gardens will close on 5 October.