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. In a combined tender, delisted SingHaiyi Group and mainboard-listed real estate companies Chip Eng Seng and KSH Holdings agreed to purchase the 160-unit Park View Mansions for S$260 million on Thursday (July 28). The land will be developed into a residential complex with up to 440 residential units by participants in the joint venture, comprising Sing-Haiyi Pearl, TK 189 Development, an indirect owned and related subsidiary of KSH Holdings, and Chip Eng Seng’s unit, CEL Development.
All three joint tenderers agreed to sign a memorandum of understanding that splits participation interest in the acquisition into portions of 40%, 30%, and 20% for CEL, Sing-Haiyi Pearl, and TK 189, respectively, in addition to promising to establish a joint venture to buy and develop the property. The $100,000 tender price has already been paid in full by the joint tenderers as of Thursday. This cash will later be incorporated into the purchase price of the property, the three parties involved in the property said in a joint statement.
Both Chip Eng Seng and KSH said they would utilize internal cash resources to fund the purchase, while KSH added that it would also use external borrowing to fund its contributions.
The two further stated that neither net tangible assets nor earnings per share for the current fiscal year are anticipated to be materially impacted by their involvement in the joint venture. With a permitted plot ratio of 2.1 and a total land size of 17,834.8 square meters, Park View Mansions on Yuan Ching Road has a maximum permissible gross floor space of 37,453.08 square meters. The 99-year leasehold, which began on October 1, 1976, has around 53 years left on it. It had previously been put up for two en bloc launches before being put up for a third collective sale last month with an asking price of S$260 million.
The cost translates to a land charge of S$1,023 per square foot per plot ratio, said marketing company ERA Realty. The land charge already includes the anticipated differential premium that will be necessary, pending approval from JTC and the Urban Redevelopment Authority, to top up the current lease to a new 99-year term and optimize the site’s development plot ratio of 2.1.
The companies said they will share further details after the deal is complete. The three property plays have already collaborated on a project in the past. The development of Peace Centre and Peace Mansion, which would have been the largest collective sale in 2021, was offered as part of their most recent joint venture for S$650 million.
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