Chuan Park sold for $890 million, just 5% below original reserve price of $938 million (Photo: The Edge Singapore)
SINGAPORE (EDGEPROP) - Word on the street is that Chinese developers Kingsford Development and MCC Land are the parties behind the $890 million offer for Chuan Park. Earlier on July 15, a notice was sent out by the collective sale committee chairperson of Chuan Park condominium to all strata owners, announcing that a meeting will be held on Monday, July 25 at 7.30pm “to provide information concerning the collective sale”.
Read also: Chuan Park Condominium relaunched for tender at $938 mil
First item on the agenda was to give an update on the percentage of units (by strata area and by share value) that had signed the supplemental joint agreement to revise the reserve price to $890 million. According to sources, the identity of the developer has not been disclosed to the owners of Chuan Park yet.
The new reserve price of $890 million is just 5% below the original price tag of $938 million. The first collective sale attempt made by the owners of Chuan Park was on Oct 5, 2021, at $938 million. This latest collective sale attempt was a relaunch at the same asking price of $938 million, with a tender that closed on April 26. This was followed by a 10-week private treaty period that closed on June 26, during which an expression of interest from a developer was received.
ERA Realty, the marketing agency for Chuan Park, declined to comment for this story. Kingsford Development could not be reached for comment.
Chuan Park has 444 condominium units and two shop units in the development. It is located next to Lorong Chuan MRT station (Source: EdgeProp Landlens)
Completed in 1984/85, the existing Chuan Park has 444 condominium units and two strata commercial units sitting on a 400,588 sq ft site with a plot ratio of 2.1. Under the URA Master Plan 2019, the site can be redeveloped into a new condominium with a gross floor area (GFA) of 841,236 sq ft. This translates to about 900 residential units, subject to URA and Land Transport Authority approval. The site has a 99-year lease starting from June 6, 1980. The site is located next to the Lorong Chuan MRT station on the Circle Line. (Find Singapore commercial properties with our commercial directory)
If the $890 million offer by Kingsford and MCC Land goes through, this would make Chuan Park the biggest collective sale deal this year to date.
Market speculation has been rife that Kingsford is the buyer of Chuan Park since it fully sold all 1,862 units at Normanton Park as at end June. And this was achieved in just 18 months since its launch in January 2021.
The 1,862-unit Normanton Park is fully sold as at end June, 18 months after its launch in January 2021 (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Normanton Park is a collective sale of the former 488-unit privatised HUDC estate of the same name. Kingsford Development had purchased the 661,005 sq ft, 99-year leasehold site for $830.1 million. Construction of the new 1,862-unit Normanton Park is handled by MCC Singapore, the construction and engineering arm of MCC Group, and is scheduled for completion by end next year.
Now that Normanton Park is fully sold, Kingsford has just one other upcoming development, namely the 142-unit new project at Slim Barracks Rise. It had won the site in a government land tender last September with a bid of $162.388 million ($1,210 psf per plot ratio).
Normanton Park is built on the site of the former privatised HUDC estate, the 488-unit Normanton Park next to Kent Ridge Park (Source: EdgeProp Landlens)
According to sources, Kingsford had hoped to win the tender for the adjacent site at Slim Barracks Parcel A as well, which had closed at the same time. However, it narrowly missed winning the site by $4 million with a bid of $316.1 million ($1,230 psf per plot ratio) relative to EL Development’s top bid of $320.1 million ($1,246 psf) at the close of the tender last September.
Kingsford is said to be “hungry for sites”. Incorporated in Singapore in 2011, its maiden project was the 512-unit, 99-year leasehold Kingsford Hillview Peak, which was launched in April 2013, completed in 2017 and fully sold. The second project was Kingsford Waterbay, with 1,165 units fronting the Serangoon River. Launched in 2015, the project was fully sold and completed in 2018.
MCC Group's involvement in Chuan Park either as a joint venture partner under MCC Land or as a contractor for the project under MCC Singapore remains to be seen. If the collective sale of Chuan Park at $890 million is successful, this could give renewed hope to other collective sale hopefuls at other ageing leasehold developments.
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