Total tab for Mandarin Gardens could hit S$4b
On top of the S$2.48b asking price, a successful buyer would have to fork out about S$325m to top up the lease, and an estimated S$1.28 billion in differential premium
Singapore
IF the Mandarin Gardens condominium ends in a successful en bloc sale, the buyer could end up with an overall price tag of S$4 billion.
Marketing agent C&H Properties told owners this at a second extraordinary general meeting on Sunday afternoon, where they approved the asking price of S$2.48 billion as well as the method of apportionment.
The owners also approved the collective sales agreement at the meeting held at Touch Centre at Marine Parade Central, according to Nelson Lim, C&H Properties' key executive officer.
With that approval, the 99-year leasehold estate along Siglap Road has begun the process of collecting signatures from owners to get the requisite 80 per cent for the collective sale to be launched.
"In the optimal situation we hope to get the 80 per cent in three months but looking at the size of Mandarin Gardens it might take a bit more time," Mr Lim said. The project has 1,006 units.
In addition to the asking price, buyers would have to pay an estimated S$325.4 million as a top-up for a fresh lease, as well as an estimated S$1.28 billion for the differential premium. This could bring the total tab to close to S$4.09 billion, which translates to S$1,236 per square foot (psf) ppr.
Mr Lim said it is expecting a consortium of developers to go for the land, given the one million sq ft plot.
Mr Lim said lawyers stressed to owners during the meeting that there would be procedural and legal measures in place to ensure there is no conflict of interest arising from its ownership.
Wen Way Investments, the real estate arm of Chinese conglomerate Amer International Group acquired the majority stake of C&H Properties' parent C&H Group in 2013.
If the sale does eventually go through, Mandarin Gardens would smash the existing record for the largest en bloc sale here by dollar value.
That is currently held by the former Farrer Court, which went for S$1.3388 billion in 2007 when a consortium bought the 838,488 sq ft estate and redeveloped it into D'Leedon.
The second highest en bloc deal was scored by Pacific Mansion in River Valley, which last week was acquired by Singapore-listed Guocoland, along with Intrepid Investments and Hong Realty, for S$980 million.
