Mandarin Gardens raises asking price to whopping $2.9bil

Romesh Navaratnarajah13 Mar 2019

If the sale goes through, the owners would receive between $1.86 million and $5.98 million depending on their unit size.

The Collective Sale Committee (CSC) of Mandarin Gardens has again raised the development’s reserve price from $2.79 billion to a new record asking price of $2.927 billion, despite the likely futility of such move amidst a weak en bloc market, reported the Straits Times.

Last November, the CSC had increased the 1,006-unit development’s reserve price from $2.48 billion to $2.79 billion, after discovering that the 1.07 million sq ft site was undervalued by more than $300 million.

More: Understanding The En Bloc Process (August 2018)

Now, the committee has again increased the amount by about 5.0 percent and raised the land rate from $1,191 psf per plot ratio (psf ppr) to $1,250 psf ppr, in a bid to obtain the required 80 percent consensus before a looming deadline, as only 67 percent of the owners have signed the deal as of 12 March.

“As the validity of the CSA ends on 24 March 2019, we appeal to all (owners) who are still considering to make an immediate decision to sign the CSA,” said the CSC in a letter addressed to unit owners dated 21 February.

“If the 80 percent consensus is not achieved, the whole en bloc sales process will come to a halt… However, if we achieve it, we are given a 12-month period to find a developer/buyer for our land,” it noted.

If Mandarin Gardens successfully finds a buyer for $2.927 billion, the owners would receive between $1.86 million and $5.98 million depending on their unit size.

The massive development would also set the record for the most expensive collective sale in Singapore’s history, surpassing the current record-holder – the $1.34 billion sale of Farrer Court to a CapitaLand-led consortium in 2007.

Get more details on the property market outlook for 2019 here

 

Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

Jacob
Mar 15, 2019
Now the prices has raised, I think boulevard 88 pricing still not bad. Furthermore, it's in district 10.
Lee Harry
Mar 13, 2019
Is Lions city property still so hot? Even property rental around the precinct has dropped by 20-30% last 2-3 years.
POST COMMENT

You may also like these articles

Pandan Valley seeks record $2.6b en bloc asking price

Each owner could receive nearly $4.2 million on average if the sale goes through.The Pandan Valley condominium has established a new record for Singapore’s highest asking price in a collective sale,

Continue Reading11 Sep 2018

Mandarin Gardens eyes new en bloc record with $2.79b price tag

The owners increased the asking price from the previous $2.48 billion after the development was found to be undervalued by more than $300 million. Mandarin Gardens condominium is set to break a new r

Continue Reading12 Nov 2018

Over 30 en bloc sites fail to secure buyers

The owners of Windy Heights in Kembangan are undergoing a re-signing process to cut the reserve price to $750 million.Singapore’s en bloc residential market has slowed down, with over 30 sites faili

Continue Reading17 Dec 2018