KOP bags Villa D'Este collective sale for S$93m

KOP Limited entered into a sale and purchase agreement on May 10 to buy the the freehold Villa D'Este in Dalvey Road through a collective sale for S$93 million.

In a statutory filing with the Singapore Exchange late on Thursday night, KOP said that it intends to redevelop the property into a high-end condominium but did not give much other details.

BT understands that the price works out to S$1,898 per square foot based on the existing gross floor area (GFA) of about 49,072 sq ft for the prime District 10 development. This unit land rate is inclusive of an estimated development charge of S$130,000.

Villa D'Este comprises 12 apartments in two low-rise blocks.

The development is on a 55,480 sq ft site that is zoned for residential use and is in a Good Class Bungalow Area; however the site can be redeveloped into a new condominium project with exactly the same GFA as the existing property.

The deal was brokered by CBRE.

The property comprises 12 apartments ranging from 3,465 sq ft to 3,939 sq ft.

"At the sale price of S$93 million, owners will be receiving gross payouts of between S$7.57 million and S$8.07 million," said Galven Tan, executive director, CBRE Capital Markets Singapore.

To date, owners of 10 of the 12 units have signed the collective sale agreement at the reserve price of S$93 million.

The collective sale for Villa D'Este was launched through tender in July last year with a S$96 million asking price, but no sale emerged from that tender.

The second tender was launched in January this year, and closed in early March. The sale to KOP was through private treaty negotiations within the 10-week period following the latest tender closing.

The condo project had also been offered for collective sale in 2010 for S$115 million, but there were no buyers owing partly to the hefty price tag and weak market confidence as the authorities had started rolling out property cooling measures then.