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 firstname.lastname@example.org