Tulip Garden sale proceeding, says marketing agent Colliers

Singapore

COLLIERS International, the marketing agent for Tulip Garden, has quashed speculation that the S$906 million en bloc sale of the Farrer Road project has hit a speed bump.

Its managing director Tang Wei Leng said: "There is no basis to the market speculation. The Tulip Garden collective sale is proceeding and we are working towards the completion of sale."

The market talk centred on the sale being scuppered because the number of residential units being planned by buyer Asia Radiant had not been approved by the authorities.

In an announcement in April this year when the bid was awarded, China developer Yanlord said the site could yield up to 670 residential units with a plot ratio of 1.6. The redeveloped project is slated for completion by 2023.

Asia Radiant, which is jointly held by MCL Land and Yanlord Land Group, made the winning bid of S$906.9 million for the freehold site on which Tulip Garden stands.

MCL, a subsidiary of Hongkong Land, and Singapore Exchange-listed Yanlord did not respond to queries from BT.

At almost a billion dollars, Tulip Garden's sale is one of the more sizeable en bloc deals sealed this year. A number of projects in District 10, where Tulip Garden is located, have also been sold collectively this year. They include Villa D'Este, Toho Mansions, The Wilshire, Hollandia, City Towers, The Estoril, and Balmoral Gardens.

At S$906.9 million, the price works out to a 20 per cent or so premium to the reserve price, and a land rate of S$1,790 per square foot per plot ratio (psf ppr) for the 316,708 sq ft estate. The sale price is higher than recent collective sales in the area such as the S$1,703 psf ppr for Hollandia, the S$1,654 psf ppr for The Estoril and S$1,536 psf ppr for The Wilshire.

After three earlier attempts, it was fourth time lucky for Tulip Garden owners. In July 2007, it was sold in its first attempt to a consortium led by Bravo Building Construction, which backed out amid a cash crunch. At the time, Bravo reportedly forfeited its 5 per cent deposit of S$25.8 million, which the owners got to keep.

The development has 162 apartments and maisonettes and two shop units. Each residential unit owner stands to receive between S$4.3 million and S$7.6 million from the latest deal.

The deal marks Yanlord's maiden entry into Singapore's prime freehold residential property market.

Shares in Yanlord closed at S$1.35 on Tuesday, down two cents.