Sentosa Cove deal not completed

Nov 16, 2009

A foreign investor who purchased two adjoining bungalow sites located at the Sentosa Cove in 2008 did not complete the transactions.

One of the plots has been re-sold by Sentosa Cove to a local buyer at $1,688 per sq ft (psf) of land – the same price that the foreign investor proposed. However, the other parcel of land is still available for sale.

The re-sold plot has about 9,700 sq ft of land area, which means the total amount paid for the site was $16.4 million.

The parcel of land was initially put on the market in March 2008, and it was sold through a private treaty by the end of that year. However, after the Chinese investor failed to meet the payment obligation on schedule, the plot was again put on the market. About two months ago, it was sold to a local buyer.

"Having the plot sold again at a similar price as in 2008 means that the fundamentals of the residential enclave on the island of Sentosa still remain intact," said Jason Yeo, general manager of Sentosa Cove.

His firm, which manages State land sales at Sentosa Cove received offers to purchase the site at lower prices. However, he held on to the price until a buyer proposed the right price.

On the other hand, the second plot, which is larger in size, has not yet received an acceptable offer. The land parcel, with about 12,000 sq ft of land area, was sold to the foreign investor for about $1,650 psf. The total quantum works out to be approximately $19.8 million.

“There has been interest from the market for the site, but the parties are not able to meet our reserve price,” Mr. Yeo said.

The land is the only remaining unsold site in the entire residential precinct of Sentosa Cove, which will have 8,000 residents when all the homes in the area are finished by 2014.

According to Mr. Yeo, all earlier land deals, which includes the landed plots sold to investors and individuals as well as condominium sites sold to developers, have been completed. He added that work on Sentosa Cove is progressing well and around 3,000 residents will be residing on the island by the end of 2009.