SINGAPORE: Mandarin Gardens condominium is one step closer to setting a record for Singapore’s largest collective sale.
Owners of the 99-year leasehold property on Sunday (Mar 25) approved the S$2.48 billion asking price for an en bloc sale attempt at an Extraordinary General Meeting which lasted over four hours.
The marketing agent for the process also revealed that developers could be facing a bill exceeding S$4 billion to acquire the property and build a new one.
“This will set an all-time record which will unlikely be broken in one or two decades,” said Nicholas Mak, Executive Director and Chief Investment Officer of ZACD Group.
“But it would also give some encouragement to other larger ageing estates such as Pine Grove or Braddell View.”
Channel NewsAsia had earlier reported that the 1,006-residential-unit property along Siglap Road was forging ahead to engineer a collective sale which is set to become the highest in terms of dollar value in Singapore’s history. The record currently belongs to the former Farrer Court, which has since been redeveloped into D’Leedon. That 99-year leasehold property fetched about S$1.3 billion in 2007.
The process for the collection of signatures to get consent from at least 80 per cent of owners has commenced – a requirement for Mandarin Gardens to be formally launched for a collective sale.
Speaking to residents at the meeting, marketing agent C&H Properties said that beyond the reserve price of about S$2.5 billion, potential buyers may have to pay an estimated S$325.4 million as a top-up for a fresh lease.
That is in addition to an estimated S$1.28 billion for the development charge, bringing the total bill, and total land price, for a buyer to about S$4.09 billion.
This works out to S$1,236 per square foot per plot ratio.
C&H Properties believes that a consortia of developers may be formed to bid for Mandarin Gardens, should the collective sale be launched.
It added that the new development could potentially be sold at a price of S$2,300 per square foot.
The marketing agent said that it is targeting to achieve 80 per cent of consent from owners by June for the collective sale to be launched, with bidding open to developers from potentially as early as next month.
Long-time Mandarin Gardens residents Channel NewsAsia spoke to were upbeat about the sale proceedings thus far.
“A collective sale is a good option, and it’s a good time, it fits into the market sentiment,” said resident of over 20 years, Kiran Deshpande.
But those who have recently bought a unit at Mandarin Gardens, expressed their concerns on the Seller’s Stamp Duty.
“It will genuinely be a problem for all buyers who have recently bought Mandarin Gardens and have paid the Buyer’s Stamp Duty,” said Manik Verma, a resident who bought his unit in the past year.
“There has to be some consideration given for the people who are paying the stamp duty twice within the past 12 months.”