Tulip Garden sold for $906.9m
Yanlord Land Group, MCL Land buy Farrer Road site
A joint entity by Chinese developer Yanlord Land Group and MCL Land has bought freehold Tulip Garden for $906.9 million - the second biggest collective sale this year.
The price is 20.4 per cent higher than the reserve of $753 million submitted by owners of the 316,708 sq ft estate.
Tulip Garden - 162 apartments and maisonettes and two shop units - is in District 10 and close to Holland Village and a Good Class Bungalow area.
Each residential unit owner could get between $4.3 million and $7.6 million, depending on the size of their unit, which range from 1,701 to 3,412 sq ft.
It is a case of fourth-time lucky for Tulip Garden owners. The development was actually sold in July 2007 during its first try, but the buyer - a consortium led by Bravo Building Construction - backed out after struggling to raise funds amid the developing financial crisis.
Bravo forfeited its 5 per cent deposit of $25.8 million, which the owners kept. Reports suggested at the time that they each stood to reap about $100,000.
This time the process should be far smoother.
Colliers International managing director Tang Wei Leng said: "Despite a spate of collective sale deals done in the Holland Road area in recent months and a large slate of redevelopment sites on the market, the tender for Tulip Garden still attracted keen interest - a testament to its excellent locational attributes."
The sale price works out to a land rate of $1,790 per square foot per plot ratio (psf ppr).
This is higher than recent collective sales in the area such as the $1,703 psf ppr for Hollandia, the $1,654 psf ppr for The Estoril and $1,536 psf ppr for The Wilshire.
The Tulip Garden site could yield up to 670 residential units with its plot ratio of 1.6, said Yanlord in a Singapore Exchange announcement after trading hours yesterday.
There is no development charge payable for redevelopment up to a gross plot ratio of 1.6, said Colliers.
The acquisition is Yanlord's first venture in Singapore's prime freehold residential property market.
The biggest collective sale deal this year is Pacific Mansion in River Valley, which was acquired by GuocoLand, Intrepid Investments and Hong Realty for $980 million.
Yanlord said the acquisition and development of the project will be financed by internal resources and bank borrowings.
Yanlord Land shares closed two cents up at $1.75, before the announcement was made.