Thomson View enbloc sale found a buyer

One of the largest enbloc sale was clinched by Thomson View Condo along Upper Thomson Road which has found a buyer at $590 million. The sale could have been helped by the recently revealed nearby Upper Thomson MRT station from the upcoming Thomson MRT Line.

Recently, successful enbloc sales exceeding $500 million were rare in reaction to the various property market cooling policies where most deals was done at under $100 million in recent years. This sale is also remarkable as it is not within the core district of 9,10 and 11.

This collective sale was secured by public listed Wee Hur Development and Lucrum Capital, a private investment company. The purchase price for the 540,314 sq ft site is at  $712 psf ppr. This is about 30 to 40% higher than current selling price if they were put up in the market for sale individually. The owners are expected to receive sales proceeds from $1.62 million to $3.59 million each.

The total investment cost from the developer is expected to be about $1.1 billion taking into account construction, professional fees, bank interests, taxes and land acquisition costs.

There are only four other enbloc sales amount that exceed this deal, of which the leader is still done by Farrer Court at $1.34 billion.

Other recent failed collective sale attempts asking above $500 million are Tulip Garden, Laguna Park and Pine Grove.

This site attributes include the elevated land providing unblocked views, near to good schools and popular Thomson Plaza shopping centre. The upcoming MRT station and its large land area are also a draw to redeveloped this site into a new major residential project.

The new development is expected to yield more than 1,000 units in view of the massive land area with a gross plot ratio of 2.1 and maximum height of 24 storeys.

11 Sep 2012