Euro-Asia Apartments sold en bloc for $222m, above guide price of $218m

Owners of the freehold condo units will each stand to get between $1.76 million and $3.97 million. PHOTO: EURO-ASIA APARTMENTS

SINGAPORE – Euro-Asia Apartments, an 84-unit development in Serangoon Road, has been sold via a collective sale tender to an associated company of Singapore-listed property firm KSH Holdings for $222.18 million, above its guide price of $218 million.

The associated company, KSH Ultra Unity, is also owned by H10 Holdings, an associate company of Ho Lee Group and SLB Development, whose parent is Lian Beng Group.

H10 Holdings and SLB Development have an equity interest of 36 per cent and 15 per cent respectively.

Owners of the freehold condominium units ranging from 840 sq ft to 2,443 sq ft will each stand to get between $1.76 million and $3.97 million, Mr Low Choon Sin, SRI managing partner of marketing agent SRI Capital Market told The Straits Times on Tuesday evening (July 26).

Euro-Asia Apartments has tried for a collective sale more than four times, including in 2010 when it was put up for sale at $142 million. The most recent attempt was in 2018 at $200 million.

The $222.18 million price translates to a land rate of $1,313 per square foot per plot ratio (psf ppr), inclusive of bonus balcony. No development charge is applicable.

KSH told the Singapore Exchange on Tuesday that its associate firm intends to redevelop the site into a 172-unit residential development.

Located near Boon Keng MRT station, the 56,476 sq ft site is zoned for residential use with an allowable plot ratio of 2.8. The maximum permissible gross floor area is about 158,132 sq ft.

Mr Low said the tender received robust interest because of its city fringe location, accessibility to the MRT and abundance of amenities within the matured neighbourhood.

“The balance inventory of new housing units within District 12 and the vicinity is low. This en bloc sale will allow the developer to replenish its landbank and meet growing demand,” he added.

Completion of the purchase is subject to fulfilment of terms and conditions.

KSH said the purchase and proposed development will be financed with internal funds and bank loans, and is not expected to have material impact on the group’s net tangible assets and earnings per share for the financial year ending March 31, 2023.

According to Cushman & Wakefield, nine residential developments were sold en bloc for $1.6 billion from January till yesterday, compared with four deals totalling just $93 million in the first seven months of last year.

Residential collective sales so far this year have also surpassed the $1.17 billion worth of sales for the whole of last year.

“Source:[Euro-Asia Apartments sold en bloc for $222m, above guide price of $218m] © Singapore Press Holdings Limited. Permission required for reproduction”

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