Pandan Valley eyeing $2.6b en-bloc sale
If collective sale goes through, it would be the biggest en-bloc transaction in dollar terms struck here
The sprawling Pandan Valley estate - one of the first condos to be built here - is aiming for a collective sale with a record-breaking price tag of $2.6 billion, sources close to the deal told The Straits Times.
If the 623-unit freehold development on the expansive 865,000 sq ft site pulls off the sale, it would be the biggest en-bloc transaction in dollar terms struck here. Pandan Valley, which was built in the late 1970s, last tried for an en-bloc deal in 2011 but fell short.
The sale committee will hold an extraordinary general meeting before the end of the year to determine how the sales proceeds are to be distributed among the owners before their signatures are collected.
Singapore's largest collective sale in dollar terms was $1.34 billion paid by a CapitaLand-led consortium in 2007 for the former Farrer Court, which has since been redeveloped into the 1,715-unit d'Leedon.
Other developments hoping to smash Farrer Court's record include the 1,006-unit Mandarin Gardens in East Coast with a reserve price of $2.48 billion and the 918-unit Braddell View, which is seeking $2.08 billion. Both are still seeking the 80 per cent mandate.
Pandan Valley will not have its corner of the market to itself. The nearby Pine Grove, with an $1.72 billion asking price, is well down the en-bloc road with 78 per cent of owners signed up.
Analysts say megasites face an uphill task after developers were hit with heftier land acquisition costs after the July 6 cooling measures.
"The risks of taking on big- scale projects have increased," said Mr Desmond Sim, CBRE's head of research for Singapore and South-east Asia.
"It's challenging in terms of the potential number of units these sites can yield, and whether the developer can finish selling all those units within five years without incurring penalties."
He said that Farrer Court was sold when risks and stamps duties were lower.
Pacific Mansion, which was acquired for $980 million by Singapore-listed GuocoLand, Intrepid Investments and Hong Realty, is the biggest such sale since 2016 in total value terms.
But Savills Research senior director Alan Cheong said: "It's very rare to find a freehold site of this size in prime district 10."
Some analysts say the freehold estate may be a better value proposition than Pine Grove, a 99-year leasehold that is nearing its one-year deadline to get the 80 per cent mandate.
"The support level among owners at Pandan valley is better. The project is more than 40 years old, and some owners want to monetise their investment," a source close to the deal said.