En-bloc news: Pine Grove

It could be third time lucky for Pine Grove along Ulu Pandan Road.



The 99-year leasehold estate could be up for collective sale again with an estimated reserve price of $1.7 billion, said Channel NewsAsia yesterday.

The deal, if successful, would be the largest in the collective sales market since Farrer Court changed hands for $1.34 billion in 2007.
Channel NewsAsia said that property agents have been gathering residents'signatures since November last year, and they have amassed 80% of votes for the collective sale to start.
The next stage of the en-bloc attempt is the preparation of tender documents, but the votes have to be first audited by the appointed law firm Lee & Lee.

There is also a "cooling off" period where residents who had signed can withdraw their consent to sell within a week.

It is understood that Jones Lang LaSalle, which is the marketing agent, is unlikely to launch a sale this year, and will likely wait for more favourable market conditions.

Analysts believe that potential buyers are likely to take a consortium or joint-venture route so as to spread the risk.

A collective sale also faces challenges from a successful Government Land Sales programme.

"Developers sometimes prefer the straight forward government sale of sites," said Donald Han, vice chairman, Cushman & Wakefield, Singapore. "The collective sale process on the other hand can become protracted."

The 660-unit Pine Grove is a former HUDC estate, which covers over 893,000 square feet of land area. Several discussions had taken place between agents and residents to sell the estate in the last few years. The en-bloc fever was particularly strong in 2007 as the property market heated up and developers snapped up several estates.

The collective sales market took a breather during the financial crisis and has revived recently, but deals have involved mostly smaller estates with more affordable price tags.
Pine Grove's reserve price of $1.7 billion could work out to between $2.1 million and $2.75 million per unit, depending on the size of the apartment and the development charge.

The current record for an en-bloc sale is held by Farrer Court, located along Farrer Road, also a former HUDC estate. It was sold in 2007 for $1.34 billion, and had a development charge of about S$500 million.

Observers said Pine Grove could attract a similar development charge.

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