Sim Lian intends to develop a condominium project with over 2,000 units on the Tampines Court site, which it acquired for S$970 million, reported Business Times.
This makes Tampines Court the biggest collective sale since 2007, when Farrer Court was sold for S$1.3388 billion.
Exceeding the initial reserve price of S$952 million, the S$970 million price works out to a land rate of S$676 psf per plot ratio, inclusive of the differential premium of S$359 million for site intensification and topping up the lease to 99 years, said Terence Lian, head of investment sales at Huttons Asia, which brokered the sale.
The owners are set to receive between S$1.71 million and S$1.75 million each.
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Nestled on a 702,164-sq-ft site, Tampines Court comprises 560 units spread across 14 blocks. The site can accommodate a maximum gross floor area of around 1.97 million sq ft, based on its plot ratio of 2.8 under the Urban Redevelopment Authority’s 2014 Master Plan.
A sought-after estate, Tampines is poised to become more exciting with the Changi Airport’s expansion, noted Sim Lian Holdings managing director Ken Kuik.
“This, combined with the fact that new MRT stations are coming up in the Tampines area, will attract more residential property buyers as well as enhance the investment proposition for the area.”
The group is making the purchase via Sim Lian (Treasure), a joint venture between Sim Lian Land and Sim Lian Development. It will also handle the construction of the project.
“We’re looking at a 12-storey project with easily over 2,000 units, ranging from one-bedders to four or even five-bedders,” said Kuik.
A market watcher expects Sim Lian’s breakeven cost to stand at around S$1,200 psf, after factoring in an anticipated increase in DC rates come 1 September and other costs.
The en bloc sale will be subject to the Strata Titles Board’s (STB) approval and if necessary the High Court, unless the owners’ unanimous approval is obtained.
To avoid paying additional buyer’s stamp duty on the land price, Sim Lian will have to finish developing the project and sell all units in five years starting from the date the collective sale order is granted by the STB or the court.
This article was edited by Denise Djong.