Third time’s a charm. The owners of Park West have finally succeeded in selling the condominium via collective sale after two previous attempts which ended in failure.
According to an SGX filing on Thursday (11 January), the residents accepted an $840.89 million offer from SingHaiyi Gold Pte Ltd, a 50:50 joint venture between SingHaiyi Group’s wholly-owned unit SingHaiyi Land and Haiyi Wealth Pte Ltd, a firm controlled by the group’s controlling shareholders, Gordon and Celine Tang.
Located in 2 – 20 Jalan Lempeng near Clementi MRT station, the property has a land area of 633,644 sq ft and a plot ratio of 2.1. It consists of four shops and 432 residential units.
In December, Channel NewsAsia reported that with the initial asking price of $818 million, each flat owner will get between $1.4 million and $2.3 million, while each shop owner will receive $1.2 million to $1.8 million.
Park West’s 99-year leasehold tenure started on 8 March 1982, but SingHaiyi Gold intends to pay about $146 million to fully renew its term. The company also plans to fork out a differential premium of S$144.6 million to redevelop the site to its maximum permissible gross floor area of about 1.46 million sq ft at a height of at least 24 storeys.
The acquisition, which will be financed by internal resources and bank loans, is not expected to have a material impact on SingHaiyi Group’s earnings per share and net tangible assets per share for the fiscal year ending 31 March 2018.
This article was edited by Keshia Faculin.