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Singapore

Ex-HUDC Development Eunosville up for Collective Sale

Stands to be the largest en bloc sale, in Singapore, in six years if successful


​Singapore, 18 June 2013: Eunosville, a 330-unit residential development located directly opposite the Eunos MRT Station, has been launched for collective sale by tender by sole marketing agent Jones Lang LaSalle Singapore. With a reserve price of S$688 million, if sold, Eunosville stands to be the second largest ex-HUDC estate sold collectively in absolute price terms, as well as the largest en bloc sale in six years.

Eunosville was built in the late 1980s by the former Housing and Urban Development Company (HUDC), a unit of the Housing and Development Board (HDB), and was privatised recently in 2011. With a generous land area of approximately 376,712 sq ft and zoned “Residential” with a gross plot ratio (GPR) of 2.8 under the Master Plan 2008, the site could potentially yield 1,000 units with an average size of 1,100 sq ft.

En bloc sales specialist Credo Real Estate was appointed by the owners as their property consultants for the collective sale in May 2012. Credo Real Estate was subsequently acquired by Jones Lang LaSalle in September 2012.

“It is not often that a privatised HUDC estate is launched for collective sale, largely due to the sheer size of such estates,” says Mr Tan Hong Boon, Regional Director of Investments at Jones Lang LaSalle. “Only eight such estates have been launched for collective sale since 2006, out of which five have been successfully sold, with the largest being Farrer Court’s 618 units which was sold for S$1.3388 billion in 2007.”

The four other privatised HUDC estates sold were Gillman Heights (S$548 million), Waterfront View (S$385 million), Minton Rise (S$342 million) and Amberville (S$183 million), all in 2006 and 2007.

“Eunosville is only 90 metres from the Eunos MRT Station, which sits on the heavily-commuted East-West Line, a major draw and a key consideration for home buyers who prefer living close to transport nodes and amenities. The Eunos MRT Station is only six stops from City Hall and five stops from Changi Airport. With the retail and commercial hive currently taking shape at Paya Lebar Central only one station away, as well as the upcoming Bedok Mall just two stations away, residents of the new project can look forward to conveniences without the congestion,” says Mr Tan.

“The lack of new supply of large-scale residential projects in the vicinity should also bode well for the successful purchaser of Eunosville. Based on latest URA-compiled statistics provided by developers, there are only about 30 unsold new residential units available in large projects (of at least 300 units) within the 2-km radius of Eunosville,” adds Mr Tan. “Moreover, the regular-shaped site enjoys wide road frontages on to both Sims Avenue and Changi Road, offering the buyer flexibility in subdividing the site into two or more bite-sized phases or projects, with each sub-parcel being almost equally close to the MRT station. The new project could also have an almost 270° unobstructed view vista from the higher floor units over the surrounding low-rise developments and landed housing estates.”

The owners of Eunosville are expecting offers in excess of their minimum price of S$688 million. This minimum price translates to approximately S$799 psf per plot ratio (psf/pr) on the potential GFA, including estimated differential premiums of S$155 million payable to top up the lease to fresh 99 years and for intensification of use, subject to approval from the relevant authorities.

The minimum bid rate of S$799 psf/pr is highly competitive compared to numerous Government Land Sales (GLS) sites sold that are close to MRT stations.

 

There are as many as five sites sold at rates above S$799 psf/pr, and with several amongst them located further away from their respective stations.

“At the minimum land price, the estimated breakeven cost is about S$1,200 psf, with the new units expected to fetch between S$1,450 psf and S$1,650 psf. Sales of new residential units at Urban Vista close to the Tanah Merah MRT station, three MRT stops further east, are already at about S$1,480 psf on average based on URA data so far,” says Mr Tan.

The existing development comprises six mid-rise and four low-rise blocks. The development has a remaining lease of about 74.5 years and it is the owners’ first attempt at selling the estate on a collective basis. Owners can look forward to gross sales proceeds of more than S$2 million per unit at the minimum price. More than 80% of the owners, by share value and strata floor area, have consented to the collective sale.

The tender for Eunosville closes at 2.30 pm on Wednesday, 24 July 2013. For further details regarding the property, please contact Tan Hong Boon on +65 9684 0607 or Karamjit Singh on +65 9681 0111.

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About Jones Lang LaSalle

Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet. Its investment management business, LaSalle Investment Management, has $47.0 billion of real estate assets under management.

Jones Lang LaSalle has over 50 years of experience in Asia Pacific, with over 25,100 employees operating in 76 offices in 14 countries across the region. The firm was named ‘Best Property Consultancy’ in nine Asia Pacific countries at the International Property Awards Asia Pacific 2012, in association with HSBC, and was named the number one real estate advisory firm in Asia Pacific in the Euromoney Real Estate Awards 2012. For further information, please visit www.joneslanglasalle.com.sg , www.jllresidential.com/sg

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