Sim Lian to build 12-storey condo at Tampines site
Sim Lian intends to develop a condominium project with over 2,000 units on the Tampines Court site, which it acquired for S$970 million
Built in 1985, Tampines Court sits on a huge 702,164 sq ft site.
Following two failed attempts at a collective sale in 2008 and 2011, Tampines Court is poised to become the biggest en bloc sale of a former Housing and Urban Development Company (HUDC) estate in a decade, reported TODAYonline.
This comes after the 560-unit development received a bid of $970 million, up from the $960 million asking price, during the close of its collective sale tender exercise yesterday (15 August).
In 2007, Farrer Court was sold en bloc for $1.34 billion.
“The tender concluded with a satisfactory result above the reserve price, considering the sprawling land size Tampines Court sits on,” said Terence Lian, investment sales head at Huttons, the marketing agent for the collective sale.
If successful, each homeowner would stand to gain $1.7 million to $1.75 million.
However, Huttons declined to reveal the developer’s identity, citing ongoing talks on sale conditions.
Built in 1985, the development at Tampines Street 11 sits on a 702,164 sq ft site and has 69 years left on its 101-year lease.
With the pending sale mirroring the optimism in the property market, analysts expect more collective sales.
“This shows the confidence of the developer to take on a project of such scale … and the risks associated with it. More importantly, their optimism that the market recovery is well on track,” said ERA Realty Network key executive officer Eugene Lim.
The robust demand for land might encourage more developments to take on the en bloc route in the coming years, said Desmond Sim, CBRE’s research head for Singapore and South-east Asia.
“There are more developers than there are land parcels. In the last land sales, there were more than 10 bidders. A lot of developers are hungry for land.”