It's wait and see for Pender Court & Tulip Garden Owners"Straits Times 4 April 2008
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"Makeway View enbloc deal falls through"
| 01 April 08 | The Business Times by Kalpana Rashiwala |
| (SINGAPORE) The $162.8
million collective sale of Makeway View in the Newton area to an
associate of Bravo Building Construction has been rescinded. BT understands that the one per cent of purchase price paid by Bravo so far has been forfeited. A Bravo spokeswoman told BT yesterday that it had earlier sought payment extensions to ascertain the quantum of development charge (DC) payable. Confirming the move to rescind the sale, she added: 'We decided not to proceed with the Makeway deal as the actual DC turned out to be higher than what we had been told. So the breakeven price would end up being much higher than what we expected. That's why my partner (in the proposed acquisition) decided not to proceedfurther.' She confirmed that the initial information about the DC did not come from Knight Frank, which was the marketing agent representing the owners of Makeway View. The $162.8 million deal for Makeway View announced in early November last year, reflected a unit land price of about $1,583 psf ppr including an estimated $21.5 million DC at the time. Bravo group was one of the biggest buyers of collective sale sites last year, with deals like Tulip Garden for $516 million. Bravo formed separate associate companies for the acquisitions of the various collective sales sites, as the plan was to have different partners for each project. A Bravo associate has so far paid the initial 5 per cent deposit on Tulip Garden, amounting to about $25 million. Tulip Garden's collective sale was approved by STB in late February and the Bravo associate was supposed to have made the second 5 per cent payment shortly after that. However, it requested for an extension on this till early April. Bravo's spokeswoman said her company is seeking a further extension to early June to pay this sum and to also extend the completion deadline for the deal from late May currently to early August. 'We need time to sort out an agreement with our partner and at the same time, sort out the financing arrangement.' Tulip Garden's owners are expected to meet this weekend to decide whether to give the payment extensions. Tulip Garden's price works out to $1,018 psf per plot ratio price (no DC is payable). |
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"Tulip Garden enbloc may be called off"
Business Times 8 April 2008
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"Owners say enbloc sale of Tulip Garden has been called off" Owners say enbloc sale of Tulip Garden has been called off
The enbloc sale of Tulip Garden, a freehold development in District 10, appears to be off.
Tulip Garden was sold in July 2007 in a collective sale valued at S$516 million. The property is along the prime Holland Road and Farrer Road area.
Channel NewsAsia understands that owners are now waiting to hear more details from the developer.
Bravo Building Construction bought Tulip Garden at more than S$1,000 per square foot and the sale was scheduled to be completed by May.
However, earlier reports stated that Bravo Building Construction was delaying the completion date and there was some talk that it was trying to arrange for alternative financing.
Some owners of Tulip Garden have already received their share of the deposit for the sale.
According to earlier reports, Bravo Building Construction has called off another enbloc sale – that of Makeway View in the Newton area and is also said to be delaying the completion date of the sale of Pender Court off West Coast Highway. – CNA/vm
Source : Channel NewsAsia – 7 Apr 2008
.Tulip Garden was sold in July 2007 in a collective sale valued at S$516 million. The property is along the prime Holland Road and Farrer Road area.
Channel NewsAsia understands that owners are now waiting to hear more details from the developer.
Bravo Building Construction bought Tulip Garden at more than S$1,000 per square foot and the sale was scheduled to be completed by May.
However, earlier reports stated that Bravo Building Construction was delaying the completion date and there was some talk that it was trying to arrange for alternative financing.
Some owners of Tulip Garden have already received their share of the deposit for the sale.
According to earlier reports, Bravo Building Construction has called off another enbloc sale – that of Makeway View in the Newton area and is also said to be delaying the completion date of the sale of Pender Court off West Coast Highway. – CNA/vm
Source : Channel NewsAsia – 7 Apr 2008
"Tulip garden off? How the deal went."
Straits Times 8 April 2008
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"En Bloc market suffers double whammy as investors look elsewhere"
Said Dr Phang: "The long timeline has to be shortened; it's too long, the whole en bloc process. The law allows you 12 months to get 80 percent. And after that, the law allows you 12 months to file the ST (strata title). And when you do, the STB (Strata Title Board) may take short of 4 months or a long time of a year. "Of course not every case is that long but if you look at the historical maximum permissible time, you're looking at something about 2 years plus. And that's a long time to wait for the money. Given the volatile market conditions in Singapore, if it goes up, owners get concerned with replacement. If it goes down, developers (become) concerned. So we should try to manage the timeline and shorten it."
Source: Channel NewsAsia 08 April 2008
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Business Times 8 April 2008
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"Issues of cost, procedures bubble up in new en bloc rules"
Business Times 12 April 2008
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