UOL and CapitaLand to acquire Thomson View Condo for $810 mil
By EdgeProp Singapore
/ EdgeProp Singapore |
Thomson View is a 255-unit private condo on Bright Hill Drive completed in 1987, with a 99-year lease from 1975 (Photo: Edmund Tie)
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UOL Group and CapitaLand Development (CLD) have entered into a put-and-call option agreement to purchase Thomson View condo for $810 million, according to an announcement on Oct 26.
Thomson View is a 255-unit, private condo on Bright Hill Drive. Completed in 1987, it sits on a 504,314 sq ft site with a 99-year lease from Apr 7, 1975, and a plot ratio of 2.1.
UOL is acquiring the site with its wholly-owned subsidiary, Singapore Land Group, via their 80:20 joint venture, United Venture Development. CLD is acquiring the site via its indirect wholly-owned subsidiary, CL Onyx Pte Ltd.
United Venture Development and CLD’s CL Onyx will undertake the $810 million acquisition on a 50:50 basis.
Thomson View was relaunched for tender in February this year at $918 million, with Edmund Tie as the marketing agent. A second tender in July closed on Sept 6 with no bids.
Edmund Tie announced on Oct 18 that it had relaunched the collective sale of Thomson View, with the tender closing on Oct 25 at 3 pm. The reserve price remained at $918 million under the collective sale agreement.
However, owners had commenced signing a supplemental agreement to lower the reserve price to $808 million. Over a span of two weeks, about 65% of the owners agreed to the revised reserve price of $808 million, which would take effect only after 80% of the owners by strata area and share value signed the supplemental agreement.
“We have seen renewed interest from developers, and in the past couple of weeks, we have conducted site viewings and discussions with several interested parties,” commented Swee Shou Fern, head of investment advisory at Edmund Tie, on Oct 18.
At $810 million, the price is 11.8% below the reserve price of $918 million. If the deal continues, Thomson View will still be the biggest en bloc deal this year.
The price of $810 million translates to $1,178 psf per plot ratio (ppr) after factoring in the land betterment charges and a lease upgrading premium for a fresh 99-year lease.
However, the option to purchase is subject to 80% of the strata-titled owners agreeing to the price.
“The Thomson View site is an elevated, sprawling 5-ha site that enjoys spectacular unblocked views. This site has very strong locational attributes, with Upper Thomson MRT Station at its doorstep, popular schools such as Ai Tong School within a 1km radius, nearby amenities including Thomson Plaza, and close proximity to parks and nature reserves,” says UOL Group CEO Liam Wee Sin and CapitaLand Development CEO Tan Yew Chin in a joint statement.
Check out the latest listings for Thomson View Condominium properties
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