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News Release

Singapore

Raintree Gardens at Potong Pasir Sold in a Collective Sale for $334.2 million

$1 billion worth of successful Collective Sales to date in 2016


​​​SINGAPORE, 6 October 2016 JLL is pleased to announce that Raintree Gardens, a 175-unit development located at Potong Pasir, has been sold collectively to UVD (Projects) Pte Ltd, a joint venture company of UOL Group Ltd and United Industrial Corporation Ltd, for $334.2 million.

More than 80 per cent of the owners had consented to the en bloc sale, for which a public tender was launched on 1 September 2016 with a reserve price of $315 million.

The sale price reflects a land cost of approximately $797 psf per plot ratio (psf/pr) on the potential GFA, inclusive of an estimated differential premium payable to the State to top up the lease to a fresh 99 years and for redevelopment of site to a gross plot ratio of 2.8.

Each apartment owner will stand to receive an average gross sale price of approximately $1.9 million upon a successful sale, which is subject to several conditions being met, including an order of sale by the Strata Titles Board or High Court.

Built in the late 1980s, Raintree Gardens comprises two 12-storey mansionette blocks and one 7-storey mansionette block, with land area of approximately 201,405 sq ft. Under the 2014 Master Plan, it is zoned 'Residential' with a gross plot ratio (GPR) of 2.8. It was built by HUDC – or Housing and Urban Development Company, a unit of the Housing Development Board. Raintree Gardens was privatised in 2014.

Mr Nicholas Ng, Director of Investments at JLL commented: "The result of the tender is a good reflection of the strong attributes of the site, which has a direct and broad frontage along the Kallang River. The park connector along the river was also a strong draw, as it allows residents of the new development to jog and cycle to many parts of the island, even to the CBD."

Mr Karamjit Singh, International Director and Head of Residential at JLL, said: "The sale of Raintree Gardens brings the total value of successful en bloc sales in Singapore this year to $1 billion, with this being the third sale for the year. Earlier in May, JLL sold 358-unit Shunfu Ville for $638 million, while 14-unit Harbour View Gardens was sold in August for $33.25 million."

"The collective sale market is slowly turning a corner", added Mr Singh. Last year, only one development was sold – Thong Sia Building, for $380 million, while there were none in 2014. The pick up in collective sale activity is due to a combination of three factors: the switch in the outlook of the residential market from negative to neutral-positive, the shortage of development sites – whether from the government or private sector, and the strong attributes and realistic pricing of the developments that were sold this year. This year's $1 billion worth of successful collective sales, while comparing strongly with the last two years, still pales in comparison with 2010 to 2013, when the average annual value of successful deals was $1.875 billion."​​​​