La Ville is a 40-unit freehold condominium at Tanjong Rhu Road. (JLL)
Marketing agent JLL revealed on Tuesday (9 Oct) that most unit owners at La Ville, a 40-unit freehold condominium at Tanjong Rhu Road, have agreed to relaunch the project’s en bloc tender, in addition to lowering the reserve price from $152 million to $140.6 million.
In consultation with JLL and the lawyers from Dentons Rodyk, the Collective Sale Committee (CSC) proposed the price reduction to the owners during an Extraordinary General Meeting and this was approved.
More: Developers’ En Bloc Appetite Diminishing: RHB
Currently, more than 70 percent of the unit owners by total share value and overall floor area have signed a supplemental agreement to lower the price, shy of the minimum 80 percent requirement.
Based on La Ville’s 47,012 sq ft land site, the lower reserve price translates to $1,424 psf ppr, or $1,361 psf ppr after taking into account the 10 percent bonus balcony space. A development charge of about $7.2 million is payable as well.
Previously, the en bloc tender for La Ville was launched in May, but it closed without any takers. During the subsequent private treaty period, JLL continued negotiations with interested parties, but stopped due to the surprise announcement of new property curbs on 5 July. Thereafter, the CSC initiated a proposal to cut the reserve price.
Located 250m from the future Katong Park MRT station, the development has an allowable gross plot ratio of 2.1. JLL added that the Land Transport Authority does not require a Pre-Application Feasibility Study (PAFS) on traffic impact regarding La Ville’s redevelopment.
The tender exercise for La Ville will close on 8 November.
Meanwhile, marketing agent Colliers International has refuted rumours that the en bloc sale of Tulip Garden has hit a roadblock after the government reportedly did not allow the would-be buyer to build its desired number of units on the site.
“There is no basis to the market speculation. The Tulip Garden collective sale is proceeding and we are working towards the completion of sale,” its managing director Tang Wei Leng told the Business Times.
A joint venture between Hongkong Land subsidiary MCL Land and China-based Yanlord secured Tulip Garden in April for $906.9 million. Based on its site area of 316,708 sq ft, this translates to $1,790 psf ppr. Yanlord said the property has a plot ratio of 1.6 and can potentially yield up to 670 homes.
More: Understanding The En Bloc Process (August 2018)
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email email@example.com