Lakepoint owners seeking S$640m in en bloc tender

REAL estate agency PropNex said it will launch the collective sale of a 99-year leasehold residential redevelopment site, Lakepoint Condominium, on Oct 21 through a public sale tender.

In a statement on Wednesday (Oct 20), PropNex said that the tender exercise starts with a reserve price of S$640 million, and will end at 2 pm on Dec 22.

The reserve price translates to an estimated land rate of S$959 per square foot per plot ratio (psf ppr), after factoring in the development charges and lease top-up premium from JTC, which is priced in accordance to market land rates today, noted PropNex.

In response to queries by The Business Times, the agency said that it is the second time that the sale of the Lakepoint Condominium is being attempted. On the first attempt, the asking price was also S$640 million. 

Subject to the approval of planning authorities and based on the 2019 master plan, Lakepoint Condominium has the potential to be redeveloped into 860 condo units averaging 915 sq ft each.

Head of investment and collective sales at PropNex Tracy Goh commented that with "little or almost no fresh supply" of residential development in the immediate vicinity, the "rare site" should appeal well to developers who prefer to have more certainty over the potential and demand in the area.

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"We believe that as the Jurong Lake District continues to take form, more firms and investors will relocate to the area, creating a surge in job creation. This site is well-positioned to enjoy the upside in capital appreciation and rental yields from the transformative efforts in the area," she said.

The new condominium will sit on a 562,286 sq ft leasehold site on the fringe of the Jurong Lake District, which near the new mega port at Tuas, as well as industrial and logistics clusters. The area is also home to "a number" of high-value industries and two world-class local universities.

 PropNex noted that the site is also near the 90-hectare Jurong Lake Gardens, Singapore's third and newest national garden. It is also "walking distance"  from the Lakeside MRT station and has easy access to main roads and expressways.