Pine Grove to be relaunched for collective sale at S$1.95 billion with possibility of lower reserve price
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SINGAPORE: Pine Grove will be relaunched for collective sale at S$1.95 billion (US$1.45 billion) on Wednesday (Mar 6) in the fifth en bloc attempt for the Ulu Pandan condominium.
The price reflects a land rate of about S$1,440 psf per plot ratio "after factoring in (an) additional 10 per cent bonus gross floor area under the various incentive schemes and inclusive of an estimated land betterment charge of S$1.02 billion for intensification and (a) lease upgrade for a fresh 99-year lease", Mr Marcus Chu, CEO of its marketing agent ERA Singapore, said in a media release on Tuesday.
The former Housing and Urban Development Company (HUDC) estate could, however, have a lower reserve price of S$1.78 billion.
Mr Chu said Pine Grove owners began signing a supplemental agreement for a lower reserve price on Jan 21 this year – a price which reflected a land rate of about S$1,341 psf per plot ratio after factoring in the bonus gross floor area an estimated land betterment charge of S$987 million.
"As of Mar 3, 2024, over 60 per cent of owners have signed the supplemental agreement, pending verification by the lawyers," he said.
Buildings 10 years old and above require at least 80 per cent consent from owners for a collective sale to happen.
The reserve price for Pine Grove's fourth en bloc attempt in late 2023 was also S$1.95 billion. The reserve prices in two preceding en bloc attempts in 2019 and 2011 were S$1.86 billion and S$1.7 billion respectively. An earlier attempt in 2008 did not get the consensus required.
The estate, located off Ulu Pandan Road, comprises 660 units on a site of 82,982.8 sq m with a remaining lease term of about 59 years. It was completed in 1984 and was privatised in 1996.
Out of the 18 former HUDC estates built between 1974 and 1987, Pine Grove ranks second in terms of land size after Braddell View.
"Zoned for residential development under the Master Plan 2019, the site boasts a gross plot ratio of 2.1, potentially accommodating up to 2,050 new units, subject to approval from the authorities," said Mr Chu, adding that The Clementi Mall, The Star Vista and Holland Village are nearby.
Pine Grove is also close to Dover MRT station as well as a number of primary schools and tertiary institutions.
In a statement, Mr Tay Liam Hiap, the managing director of investment sales at ERA, said: "Pine Grove presents an outstanding opportunity for developers looking to create a landmark development that is facing lush greenery and near to an MRT station."
He said that the support for the supplemental agreement "is encouraging and indicates owners' strong readiness to sell their units through this collective sale attempt".
"The recently revised Additional Buyer's Stamp Duty remission clawback for residential projects is also a positive development for large collective sale sites like Pine Grove," he added.
The tender for Pine Grove will close at 3pm on May 6.
