En bloc fever is slowly creeping back, with several mega-sites gearing up to enter the collective sale market. Veterans on the scene, like Pearl Bank Apartments and Laguna Park, which have tried and failed before, are hoping to strike success this time round.
Marketing agents for the pair told The Straits Times that both developments are 'in the final laps' of the sales process. Before a property can be offered for collective sale, consent must be obtained from at least 80% of owners if the condominium is older than 10 years, and at least 90% of owners if it is under 10 years old. Pearl Bank apartments, located in Outram, has a maximum gross floor area of 613,000 sq ft and contains 280 apartments and 8 commercial units. Despite resistance from several residents and conservationists who have campaigned to preserve the site as a local design landmark, the project has garnered almost 75% approval so far. In 2007, an attempted $750 million sale of the 99-year leasehold property failed after attracting no bids. Another deal launched in 2008 also fell through. Similarly, Laguna Park - with a land area of 677,463 sq ft - has secured nearly 72% of residents' votes. The last bid to sell the former HUDC estate in 2009 failed even after the reserve price was lowered from $1.2 billion to $967 million. Another project, Tampines Court, recently called an extraordinary general meeting to elect a sales committee, ahead of another attempt at a collective sale. The Strata Titles Board dismissed a $405 million deal for the 702,162 sq ft project in 2008, after it found the sale had not been conducted in good faith. Another condo on a large site, Pandan Valley, is gunning for a new price record with its latest attempt at the collective sale process. This comes just days after its neighbour Pine Grove announced its $1.7 billion collective sale. Subject to the approval of residents, Pandan Valley's sale would be the largest one to date, said Knight Frank, the condo's marketing agent. Although Knight Frank declined to disclose exact figures, it said the deal would be a significant increase over Pine Grove's $1.7 billion reserve price. Pandan Valley covers an area of 871,877 sq ft and contains 623 units. This is closest in both size and location to the 660-unit Pine Grove which measures 893,178 sq ft. Pandan Valley has been seeking the backing of owners. But it will be a long uphill task, with only about 20% of owners' signatures received to date. The condo's previous collective sale attempt failed to garner the required level of support from residents. Analysts predict the outcome of Pine Grove's sale could ultimately influence the value of any collective sale which may be reached at Pandan Valley. Mr Jeffrey Goh, HSR head of investment sales, said he is working on 11 collective sale deals at the moment, worth an estimated $3 billion. 'Developers are more hesitant about entering into joint ventures for large sites,' he said.
- The Straits Times, B20
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