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Asia Gardens sold en bloc for S$343m to consortium

18 Apr, 2018

ASIA Gardens, located along Everton Road in the Spottiswoode enclave, has been sold for S$343 million via collective sale to a consortium here led by developer Sustained Land.

The other partners are builder-cum-developer Ho Lee Group and an investment holding company fully owned by Loi Pok Yen, logistics company CWT's group chief executive.

Owners at the 23-storey freehold development, which has 80 apartment units and four penthouses, are expected to receive gross sale proceeds of between S$3.476 million and S$7.73 million per unit.

The sale price reflects a land rate of S$1,722 per square foot per plot ratio (psf ppr). Due to the high development baseline, there is no development charge payable, which translates to S$1,565 psf ppr including the 10 per cent bonus balcony area.

The development, which was completed in the late 1980s, has a land area of approximately 72,059 square feet (sq ft) and a gross plot ratio of 2.8.

It is close to the Central Business District (CBD) and a short drive from Marina Bay, Clarke Quay, Orchard Road and Harbourfront, said marketing agent Edmund Tie & Company in a statement on April 17.

It can potentially be redeveloped into a 36-storey residential condominium project with approximately 264 apartment units, subject to authorities' approvals.

Its asking price when the tender was launched in March was S$338 million.

"Asia Gardens represents probably the last freehold residential redevelopment site in the precinct," Edmund Tie & Company's senior director of investment advisory Swee Shou Fern said. "It is ideally oriented north-south facing and units in the new development will enjoy unobstructed panoramic views of the city skyline and sea beyond the Tanjong Pagar port area."

Sustained Land's director Douglas Ong told The Business Times that it had fully sold its projects with over 1,000 units in total - Sturdee Residences near Farrer Park MRT, TRE Residences in Geylang (jointly with MCC Land) and Poiz Residences at Potong Pasir - and has been seeking to replenish its land bank.

It led a consortium that acquired Parkway Mansion along Amber Road in an en bloc deal for S$146.99 million in December 2017. Sustained Land also bought The Albracca in a S$69.1 million collective sale in July 2017.

Ho Lee Group, incorporated in 1996, has developed residential and commercial projects such as the built-to-order Mauser Factory in Tuas, The Watercolour Executive Condominium and The Heron Bay Executive Condominium.

It is also involved in general building construction and specialised metal works, among other construction-related work.

It is the first local deal for Mr Loi - and his largest so far - under his fully owned Penjuru Capital, which has also invested abroad in property in the United Kingdom and Japan, he told BT.

Edmund Tie & Company is also handling the collective sale of Peak Court and Casa Meyfort, with their tenders closing on May 9 and May 21 respectively.

Adapted from: Business Times, 18 Apr 2018