Euro-Asia Apartments sold to KSH Holdings’ indirect subsidiary for S$222.18 million
AN indirect subsidiary of property firm KSH Holdings has won the tender for Euro-Asia Apartments in Serangoon, which was put up for collective sale last month, according to an exchange filing on Tuesday (Jul 26).
KSH Ultra Unity (KSHUU), KSH’s indirect 49 per cent-owned associated company, won the bid for the 84-unit development at 1037 Serangoon Road at the purchase price of S$222.18 million.
This is slightly above the guide price of S$218 million, when the 10-storey block of apartments was put up for sale on Jun 1, its second attempt at doing so.
KSHUU is 36 per cent owned by H10 Holdings, while SLB Development owns 15 per cent, according to the filing.
The 56,476 square foot (sq ft) freehold site has a maximum allowable gross floor area of about 158,132 sq ft and an allowable plot ratio of 2.8. Completed in 1990, Euro-Asia Apartments is a 10-storey block comprising units ranging from 840 to 2,443 sq ft in size.
Brokered by SRI Capital Market, the transacted price translates to a land rate of S$1,313 per square foot per plot ratio (psf ppr), inclusive of bonus balcony area. No development charge is applicable.
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KSHUU intends to redevelop the property into a new residential development with about 172 residential units, KSH said.
The purchase and proposed development will be financed by internal funds and borrowings, the company said, and are not expected to have any material impact on its financial results in the current financial year.
Low Choon Sin, managing partner of SRI Capital Market, said the tender was well-received, with interest from developers due largely to the property’s city-fringe location, accessibility to the Boon Keng MRT Station and the abundance of amenities in the mature neighbourhood.
“Currently, the balance inventory of new residential housing units within District 12 as well as the vicinity is running low. The sale of Euro-Asia Apartments is timely to allow the developer an opportunity to replenish their land bank as well as inject new housing units to meet rising demand from the market,” he said.
KSH shares closed flat at S$0.35 on Tuesday.
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