Chuan Park FB posts: A case of putting cart before the horse?

THE ink has barely dried on the Chuan Park en bloc deal - which is subject to various approvals - but social media posts have already appeared concerning a supposed new development that will take its place.

A Facebook page called Residences At Chuan was created and posts made on Jul 16 - the day after Chuan Park’s owners received a circular informing them that a meeting would be held on Jul 25 to provide information concerning the collective sale.

The posts reference Chuan Park’s en bloc sale, as well as developer Kingsford, which, together with MCC Singapore, are understood to be the buyers of the 99-year leasehold condominium site.

Marketing agent ERA Realty and Chuan Park’s Collective Sale Committee (CSC) have so far declined to reveal the name of the buyers, as they said they were not allowed to disclose the buyers’ identity without their permission under the terms of their agreement.

Other posts by Residences At Chuan highlight the new development’s good location, ease of accessibility, as well as the amenities and schools nearby.

One Facebook advertisement called it “an upcoming mega-development”, with “900 units of 1-5 bedrooms” and mentioned “early bird developer’s pricing”. An agent who replied to a message sent in response to the ad said the development is likely to launch in 2023 and “ready by 2027”.

However, these ads are unlikely to have been sanctioned by Chuan Park’s purchaser, as the sale is subject to an Order for Sale being made by the Strata Titles Board, High Court or Court of Appeal.

The Business Times (BT) understands that it is only after the buyer takes over the land that conceptualisations and preparations for the site may be carried out. That is also when a possible name for the new development may be registered.

Besides, the sale is subject to several conditions, one of which is that the purchaser must obtain shareholder approval within 16 weeks after the date of the sales and purchase (S&P) agreement. Others include the go-ahead from relevant authorities for its redevelopment plans. If these conditions are not met, the agreement is deemed cancelled and all deposit monies paid by the purchaser will be refunded.

Responding to BT, ERA said that as the collective sale marketing agent, it is unable to comment on anything as the deal is still subject to approval.

Checks at 5.25 pm on Wednesday found that the Residences At Chuan Facebook page was no longer accessible.

Chuan Park was sold on Jul 5 via private treaty for S$890 million - 5.1 per cent below the S$938 million reserve price - after the tender for its collective sale closed on Apr 26 without bids.

At S$890 million, the land rate, which includes an estimated upgrading premium of S$165 million, works out to S$1,254 per square foot per plot ratio, according to ERA. The development charge is not payable due to the existing high baseline.

The 400,588.7 square foot (sq ft) site has a gross plot ratio of 2.1 under the Urban Redevelopment Authority’s Master Plan 2019 and an achievable proposed gross floor area of 841,236.3 sq ft.

At the Jul 25 meeting, Chuan Park’s owners were told the gross proceeds each unit will get from the collective sale.

They were also informed that the development was sold on Jul 5, the deadline for the CSC to sign the S&P agreement. It was also the day the 80 per cent mandate needed for the sale was achieved.

Some owners have expressed their unhappiness over what they felt was a lack of timely updates leading up to, and after the Jul 5 deadline. However, the CSC explained that the buyers were specific about what could and could not be revealed.

Owners of the 444 homes at Chuan Park will receive gross proceeds of about S$1.16 million for a 710 square foot (sq ft) unit and up to S$2.53 million for a 2,045 sq ft unit. The 2 commercial units will receive S$1.09 million for a 474 sq ft unit and S$2 million for a 1,238 sq ft unit.