Chuan Park En Bloc Bid At $890M By Kingsford and MCC Land

Chuan Park en bloc bid met with obstacles.

LATEST ANNOUNCEMENT AS AT 9 DEC 2022: Chuan Park’s collective sale was halted by the Strata Titles Board (STB) on Friday (Dec 9), following a group of six minority owners’ refusal to withdraw their objections. Mediation resulted in the stop order after three rounds. Chuan Park’s Collective Sale Committee and marketing agent ERA did not disclose material facts regarding a higher development baseline for the condominium. This resulted in a hefty cost savings for buyers, among other matters, disgruntled owners claimed.

On 16 July 2022, rumour has it that Chuan Park en bloc, the biggest collective sale site in 2022 todate, is tendered by Kingsford and MCC Land. Despite its reserve price of $938 million, the 99-year leasehold Chuan Park achieved a price of $890 million. If the en bloc is successful at $890 million, it will represent 5% below the reserve price.

It was announced earlier on July 15 that a meeting to provide information about the collective sale of Chuan Park condominium will take place on Monday, July 25 at 7.30pm. The marketing agency ERA and developers could not be reached for comments.

Chuan Park En Bloc:

credit:edgeproplandlens

Estimated PSF PPR Land Price:

At Chuan Park, there are 444 condominiums and two shops. This property is located next to Lorong Chuan MRT station along the Circle Line (CC14). Chuan Park sits on a huge 400,589 sqft of land with 2.1 plot ratio, working out to 841,236.31 sqft of gross floor area. The land sale price is estimated to be S$1,042 psf ppr. Using the reserve price of S$938 million and that S$192.62 million is the upgrade premium to increase the existing floor area by 7%, the ppr is calculated at S$1256 psf. Existing plot ratios are not affected by the development charge. Approximately 900 to 919 residential apartments can be built. The tenure of the land is effective from 1980.

There has been strong market speculation that Kingsford will purchase Chuan Park since Normanton Park is fully sold in end June. Its launch in January 2021 has taken Kingsford just eighteen months to achieve this result.

Chuan Park En Bloc History:

Chuan Park’s owners had their collective sale in 2018 with an asking price of S$900 million. This figure had been revised up from their 1st collective sale attempt at S$790 million.

The Lorong Chuan property en bloc was relaunched on Oct 5, 2021 at $938 million with no takers.

Singapore’s cooling measure took place on 16 Dec 2021 just before Chuan Park collective sale did another relaunch on 14 Mar 2022. At the close of the tender on April 26, there were no bids. Following a 10-weeks private treaty period which ended on June 26, 2022, a developer expressed interest in developing the project.

Normanton Park By Kingsford:

In 18 months since its launch in January 2021, Normanton Park has sold all its 1,862 units. The current 99-year leasehold Normanton Park is an en bloc of the previous 488 units of HUDC flats that went by the same name. It was tendered at S$830.1 million. By end of 2024, the new 1,862-unit Normanton Park will be completed by MCC Singapore, the construction and engineering division of MCC Group.

Slim Barracks Rise (Parcel B):

Slim Barracks Rise (Parcel B) is a 142-apartment units new condo project won by Kingsford in Sep 2021 at a tender price $162.388 million. This works out to $1,210 per square foot per plot ratio (psf ppr).

Kingsford also participated in an adjacent Slim Barracks Rise (Parcel A) GLS tender but was $4 m lesser than the top bidder, EL Development’s price of S$320.1 million ($1,246 psf).

Kingsford’s Past Projects:

• 1. Kingsford Hillview Peak 512-units: Launched April 2013 and Completed 2017
• 2. Kindsford Waterbay 1,165 units: Launched 2015 and Completed 2018

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Source:https://www.businesstimes.com.sg/real-estate/chuan-park-sold-for-s890m-lower-than-reserve-price