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Subscribe to this list via RSS Blog posts tagged in New Land Parcel Launched

A 99-year leasehold mixed-use site at Bukit Batok West Avenue 6 has been awarded to Qingjian Realty, the Urban Redevelopment Authority (URA) said on Monday, 30 May.

Launched for sale in March, the tender for the site attracted strong interest from developers, with 11 bids submitted by the close of tender on 24 May.

“The cut-back in land sales and the dearth in land parcels for sale in the area gave bidders additional reasons to bid for the land,” said Desmond Sim, Head of CBRE Research, Singapore and South East Asia.

Qingjian submitted the top bid of $301.16 million, which translates to about $635 psf per plot ratio for the 1.5ha site. This is the developer’s first mixed-use development in Singapore, and it expects to build about 500 condominium units.

“This location’s close proximity to the Jurong district, and the success of recent mixed development launches, are very positive indicators of the market’s likely reaction to a potential Qingjian development here,” said the firm’s General Manager, Li Jun.

The mainland Chinese developer has been aggressively buying up land for private development in recent weeks. Earlier this month, it announced that it had entered into a sales and purchase agreement with the residents at Shunfu Ville, at a collective price of $638 million.

 

Credits: Propertyguru

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Posted by on in New Launches

A 1.93ha residential site at Siglap Road has been awarded to a consortium comprising Frasers Centrepoint unit FCL Topaz, Sekisui House and Keong Hong Holdings unit KH Capital, after the developers submitted the highest bid of $624.18 million, according to the Urban Redevelopment Authority.

The offer translates to about $858 per square foot per plot ratio.

The tender for the 99-year leasehold site closed on 14 January 2016 with eight bids. It could yield 750 housing units.

The land parcel is within proximity to the future Siglap MRT station and the East Coast Parkway (ECP). Parkway Parade, 112 Katong and established schools such as Victoria Junior College and Tao Nan School are also nearby.

Credits: Propertyguru

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Posted by on in New Launches

UPDATED: A residential site at New Upper Changi Road/Bedok South Avenue 3 (Parcel B) was launched for sale by public tender today, revealed the Urban Redevelopment Authority (URA).

The 2.4ha site which could yield about 570 housing units was made available for sale on the reserve list of the second half 2015 Government Land Sales (GLS) Programme.

On 7 January 2016, the URA announced that it had received an application from a developer for the site to be put up for public tender. The developer had committed to a minimum bid price of $320 million in the tender for the site.

“The bid that triggered the launch of the site is slightly conservative, as the developer may have presumed a 15 percent decrease in sales price from December 2015 to October 2016. Assuming that prices will dip by about five percent, we anticipate the winning bid to be around $380 million ($690 psf) to $400 million ($725 psf),” said Dr Lee Nai Jia, Regional Head of Southeast Asia Research, DTZ.

“Given the location, we expect the number of bids to be around 10,” he added.

The 99-year leasehold site is close to Tanah Merah MRT station, Changi Business Park and the Singapore University of Technology and Design.

“Rental yield in the area is about three percent to 3.5 percent, which is pretty attractive for residential developments,” noted Lee.

The tender exercise will close on 23 February 2016, said the URA, adding that any tender below $320 million will not be considered.

Meanwhile, The Glades, a 726-unit condominium located at the corner of Bedok and New Upper Changi roads, is set to be completed in 2017. The 3.2ha site was sold to Keppel Land for $434.6 million in October 2012.

According to Lee, The Glades has sold 371 of the 400 units launched, while nearly all units in Eco, another nearby development, have been transacted. The prices for the Glades as at December 2015 ranged from $1,274 psf to $1,540 psf.

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9 property privatisations recorded in last four years.

Including the most recent general offer of SingLand, CIMB counted nine privatisations/partial offers within the property space in the past four years, with offer prices offering >20% upside on average. CIMB explores potential privatisation candidates which include Wheelock, Ho Bee, Wingtai and Bukit Sembawang .

Here's more from CIMB:

With developers trading at historically steep discounts, high-end market void of buyers and potential extension charges on unsold developments, we asked ourselves what will happen if this continues.

We come to two conclusions 1) more reasons for privatisations of small-mid cap developers and 2) further weakness for high-end residential properties.

We compared potential privatisation candidates based on 1) current valuation against historical mean; 2) whether there are major shareholders with more than 50% stake in the company; 3) lack of the need for equity fund raising (EFR) based on balance sheet strength and when they last tapped the market; 4) trading liquidity as percentage of free float and; 5) whether there is any incentive to avoid extension charge by going private.

We have selected four companies, all of which are trading at significant discount to historical P/BV and RNAV, with limited need for equity fundraising given their strong balance sheets. Out of the four, we believe Wheelock and Ho Bee have higher potential of being taken private.

Wheelock fits most of the criteria that we looked at, despite lacking the push factor of extension charge. It is 75.8% owned by Hong Kong-listed Wheelock and Company Ltd (20 HK), which owns The Wharf (4 HK) and Wheelock Properties Limited (private).

The majority shareholder is financially strong with HK$29.3bn (S$4.8bb) cash and equivalents and 0.3x net gearing. On top of that, Wheelock's valuation is attractive at 0.7x FY13 P/BV, 0.6x FY14 P/BV and 34% discount to RNAV. Coupled with its strong balance sheet and low liquidity, we believe it is the most likely candidate for privatisation.

Ho Bee is another candidate at the top of our list, given its attractive valuation, majority shareholder and strong balance sheet with limited need for equity fundraising. On top of that, we noticed that Ho Bee Holdings (owned by Mr Chua Thian Poh, Mdm Ng Noi Hinoy and Mr Chua Kong Chian) has been increasing its stake since 70.8% in Apr 2013 to 72.6%.

Ho Bee is our top pick within the small-mid cap developer space and its book is undervalued in our opinion, largely on the basis that Metropolis's book value of S$1,151 psf NLA is conservative relative to our estimation of S$1,550 psf NLA (based on 4.2% cap rate and recent office transactions). While its unsold Sentosa developments remain a drag on earnings and share price, they are not subjected to QC and are currently being rented out.

Wing Tai has a healthy balance sheet and is trading at a historically low FY13 and FY14 P/BV of ~0.5x. While its majority shareholder owns a smaller stake of ~50% than the majority shareholders of other privatisation candidates, it has the additional push factor of extension charge.

Bukit Sembawang fits the criteria of cheap valuation, low liquidity and limited need for equity fundraising. However, privatisation may not be a near-term theme for the stock as the largest shareholder owns only ~41% of the company and does not face a push factor such as the extension charge.

Credits: Singapore Business Review

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