Business

Mandarin Gardens could see overall price tag of $4 billion

If the Mandarin Gardens condominium does go on the market, developers could be looking at an overall price tag of $4 billion to acquire the property.

Marketing agent C&H Properties said this to owners at a second extraordinary general meeting on Sunday, when the owners approved an asking price of $2.48 billion as well as the method of apportionment.

The owners also approved the collective sales agreement at the meeting held at Touch Centre at Marine Parade Central, according to Mr Nelson Lim, C&H Properties' key executive officer.

The 99-year leasehold estate at Siglap Road has begun the process of collecting signatures from owners to get the requisite 80 per cent for the collective sale to be launched.

"In the optimal situation, we hope to get the 80 per cent in three months but looking at the size of Mandarin Gardens it might take a bit more time," Mr Lim said.

In addition to the asking price, buyers would have to pay an estimated $325.4 million as a top-up for a fresh lease, as well as an estimated $1.28 billion for development charges.

This could bring the total tab to nearly $4.09 billion, which translates to $1,236 per square foot per plot ratio.

Mr Lim said it is expecting a consortium of developers to go for the land, given the size.

The 1,006-unit development sits on a one million sq ft plot.

He also said lawyers stressed to owners during the meeting that there would be procedural and legal measures in place to ensure there is no conflict of interest from its ownership.

Wen Way Investments, the real estate arm of Chinese conglomerate Amer International Group, acquired the majority stake of C&H Properties' parent C&H Group in 2013.

If the sale does go through, Mandarin Gardens could break the record for the largest collective sale here by dollar value.

That record is held by the former Farrer Court, which went for $1.34 billion in 2007 when a consortium bought the 838,488 sq ft estate and redeveloped it into D'Leedon.

The second highest collective sale deal belongs to Pacific Mansion in River Valley, which was acquired last week by Singapore-listed GuocoLand, along with Intrepid Investments and Hong Realty, for $980 million. - THE STRAITS TIMES

Property