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FOUR weeks after the owners of Sun Rosier condominium along How Sun Drive put up their freehold site for en bloc sale, a SingHaiyi-led group has won the tender for S$271 million, higher than the asking price.
The winning bid was one of four and translates to S$1,325 per square foot per plot ratio (psf ppr) or, in total, 15.3 per cent higher than the S$235 million asking price.
In a filing with the bourse operator late on Thursday, real estate group SingHaiyi said the bid for Sun Rosier was submitted by its subsidiary SingHaiyi Properties and Huajiang International Corporation.
It added that the owners of Sun Rosier accepted the purchase on Thursday, the closing day for the tender.
The acquisition will be funded by internal resources and bank borrowings, SingHaiyi said.
The company's shares traded down 0.1 Singapore cent to S$0.117 at closing on Friday, on a volume of 566,000 units.
In late August, owners of Sun Rosier launched a tender for the collective sale and were asking S$235 million for the property, or about S$1,149 psf ppr, for the 146,045.67-sq-ft residential site. The condominium has a plot ratio of 1.4 and a height limit of up to five storeys, Huttons Asia had previously said.
Sun Rosier comprises 78 apartment units in four blocks of four storeys each, with a total strata area of 143,719.59 sq ft.
On Friday, Huttons Asia said at the purchase price of S$271 million, each unit owner stands to pocket an estimated amount of between S$2.86 million and S$4.77 million, averaging S$1,885 psf.
"This is 108 per cent over the last or latest transacted price for a unit sold early this year or two times of what the subsidiary proprietors could fetch if they sell their units on an individual basis and not via en bloc," it added.
Galven Tan, director of capital markets at CBRE, said the premium is decent and that the bid still shows that developers are hungry for well-located sites that are attractively priced.
"Owners should be assured that the reserve price they agreed to is the base case and competitive bidding among developers will ensure the premium to their reserve price," he said.
Stephen Tan, head of collective sales at Huttons Asia, said the collective sales committee and the owners had prepared for the sale about a year ago, "even when market sentiment was not so rosy".
"Sun Rosier is one of the few and rare freehold development sites. We capitalised on this, and external factors such as the strong demand for such sites and the prevailing conditions in the development land market near the upcoming Bidadari Estate to make this en bloc a distinctive success," he added.