Collective sale: Pine Grove gets nod at latest attempt
Reserve price of $1.7b beats record set by Farrer Court in 2007
By Esther Teo
The 660-unit Pine Grove sits on 893,178 sq ft of land. Many units are 1,754 sq ft in size. The reserve price of $1.7 billion could work out to be between $2.1 million and $2.75 million per unit, depending on the apartment size and development charge. -- ST FILE PHOTO
PINE Grove residents have successfully obtained the crucial 80 per cent approval needed to embark on a collective sale of their sprawling Ulu Pandan estate.
This follows failed attempts to do so last year and during the 2007 boom.
The reserve price has been set at $1.7 billion, which means Pine Grove could become Singapore's largest residential collective sale, beating the $1.34 billion record set by Farrer Court in 2007.
The Straits Times understands that the condominium's latest attempt at a collective sale crossed the requisite 80 per cent majority approval threshold last Saturday. Jones Lang LaSalle is the marketing agent.
The process, however, is now going through a five-day 'cooling off' period during which home owners may change their minds. The period begins after a collective sale agreement is signed. The measure was introduced this year.
The collection of signatures at the 660-unit former Housing and Urban Development Company (HUDC) estate on 893,178 sq ft of land started on Nov 15 last year. Many units are 1,754 sq ft in size.
The reserve price of $1.7 billion could work out to be between $2.1 million and $2.75 million per unit, depending on the apartment size and development charge.
Resident Sing Tien Foo, who has been living at the estate since 2003, said it would be good to have the place redeveloped.
But the associate professor at the National University of Singapore added that there were many residents who have strong attachments to the estate.
'I have mixed feelings about the sale as well. While we will get a higher price than if we sell the units individually, I like this place very much,' he said.
Mr Colin Tan, research and consultancy director of property firm Chesterton Suntec International, said Pine Grove was likely to be redeveloped into a high-end to luxury development.
It is in a good location, he said, in an established expatriate area near an international school and close to an area of good-class bungalows.
Mr Tan added that bigger property players or joint ventures formed to mitigate the level of risk are likely to bid as the reserve price of $1.7 billion is a very large sum to stump up.
'The luxury market hasn't quite recovered yet, so if we are targeting developers who plan to launch such luxury condos, then maybe it isn't the right time to launch the sale yet... although the market is likely to pick up in the future.'
Pine Grove's collective sale attempt in 2007 failed to bear fruit, even though the average payout was eventually raised to about $2 million a unit.
The current record for a collective sale is held by Farrer Court located along Farrer Road, also a former HUDC estate. It was sold to CapitaLand and had a development charge of about $500 million.
esthert@sph.com.sg
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