SINGAPORE (EDGEPROP) - A joint venture between UOL Group and Singapore Land Group has emerged as the buyer of Watten Estate Condominium located on Shelford Road in the prime Bukit Timah area. They won the site with a bid of  $550.8 million.

The price translates to a land rate of $1,723 psf per plot ratio (psf ppr), including 8% bonus gross floor area and the corresponding development charge, says Tan Hong Boon, executive director of capital markets at JLL, the sole marketing agent that brokered the sale. Rajah & Tann Singapore LLP advised the vendors in the collective sale.

Built in 1983, Watten Estate Condominium has 104 units, comprising townhouses and apartments. It sits on an elevated freehold site measuring 220,241 sq ft zoned for residential use with a gross plot ratio of 1.4 under the Urban Redevelopment Authority’ 2019 Master Plan. The site could potentially be redeveloped into a new condominium with 286 units based on the minimum average size of 100 sqm (1,076.4 sq ft).

As the site is located amid a predominantly low-rise, landed housing estate, the new units in the proposed development could potentially enjoy unblocked views of the surrounding greenery, says JLL's Tan. “A popular District 11 address, Watten Estate Condominium is located within 1km of two sought-after primary schools, namely Nanyang and the Raffles Girls’,” he adds.

The condo was first put up for en bloc sale in July 2019 at a price of $536 million. (See potential condos with en bloc calculator)

In September, the condo was put up again for collective sale via tender with a minimum price of $500 million.

The $550.8 million bid was accepted by the members of the sale committee on Oct 27. At this bid price, the owners could expect to receive gross sales proceeds of between $3.1 million and $6.5 million per unit, adds Tan.

Over 80%  the owners have consented to the sale, which is subject to several conditions being met, including an order of sale by the Strata Titles Board or the court, where applicable.

Of the total consideration, 5% (including the tender fee) will be paid within seven business days from the award of the tender. Another 5% will be paid within seven business days from the notice of receipt of sale approval, while the remaining 90% will be paid upon legal completion.

According to UOL Group and Singapore Land Group, the consideration will be financed primarily from bank borrowings and internal resources.

Source: EdgeProp Inspector

The 80:20 joint venture company, named United Venture Development (No. 4) or UVD4, is formed by UOL Venture Investments, a wholly-owned subsidiary of UOL Group and Singland Residential Development, a wholly-owned subsidiary of Singapore Land Group.

Under the JV, UOL Venture has 40 ordinary shares at $1 apiece, representing an 80% interest, while Singapore Land Group is interested in 10 ordinary shares, or a 20% interest in the JV.

The JV was incorporated in Singapore on Dec 3, 2012.

In connection with the acquisition, both companies will enter into an agreement to formalise the terms of the JV.

The agreement will see that each shareholder will be entitled to nominate directors to UVD4’s board. The parties will also undertake to provide sufficient funds to enable the completion of the acquisition.

The JV is considered an interested person transaction, under the terms set out in the SGX listing manual.

Wee Cho Yaw is the chairman, director and controlling shareholder of SingLand and UOL. Wee Ee Lim, who is the son of Wee Cho Yaw, is a director of SingLand and the deputy chairman and a director of UOL. Liam Wee Sin is a director of SingLand and UOL and the group CEO of UOL.

The total value of all transactions year-to-date for the current FY entered into with UOL is approximately $382.1 million.

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