Oxley Hldgs in $171m property acquisition

Business Times: Thu, Sep 22
(SINGAPORE) In the biggest collective sale so far this year, a consortium led by Oxley Holdings has clinched the Hong Leong Garden Shopping Centre, a mixed development at West Coast Way, for $171.128 million. This works out to a unit land price of …

(SINGAPORE) In the biggest collective sale so far this year, a consortium led by Oxley Holdings has clinched the Hong Leong Garden Shopping Centre, a mixed development at West Coast Way, for $171.128 million.

This works out to a unit land price of about $804-819 per square foot of potential gross floor area – depending on the mix of commercial and residential quantum proposed by the developer at the allowable 1.6 gross plot ratio (ratio of maximum potential gross floor area to land area).

The unit land rates take into account the estimated land premium for the potential acquisition of adjoining state land of 13,482 square feet and a development charge at prevailing rates, said Credo Real Estate, which brokered the sale.

Hong Leong Garden Shopping Centre, comprising 72 apartments and 66 shop units, was built in the 1980s by the Hong Leong Group. It was put up for collective sale last month through a tender exercise which closed on Sept 19.

‘The tender exercise was keenly contested, drawing four submissions. Even with the availability of Government Land Sale sites, en bloc sites like Hong Leong Garden Shopping Centre are attractive as developers have the flexibility to do a mix of commercial and residential units in the new development,’ said Credo deputy managing director Tan Hong Boon.

Next to the site is Hundred Trees, a condo project being developed by City Developments Ltd (CDL) on the former Hong Leong Garden condo site. CDL, in partnership with parent Hong Leong Group, is believed to have participated in the recent tender for Hong Leong Garden Shopping Centre.

The consortium which emerged as the successful buyer is 65 per cent controlled by Oxley Holdings; the remaining 35 per cent is held by Unique Consortium, comprising Heeton Holdings, KSH Holdings, TEE International Limited and Zap Piling.

The sale is subject to approval of the Strata Titles Board.

This is the biggest collective sale so far this year in value and the largest collective sale in terms of land size in four years. So far this year, 37 collective sales totalling close to $2.24 billion have been inked, surpassing the 36 deals totalling about $1.77 billion for the whole of last year, according to Credo.

Hong Leong Garden Shopping Centre stands on a 956-year-leasehold site with a land area of 150,816 sq ft. Owners stand to receive gross sales proceeds of $1.17-1.64 million per apartment and between $792,000 and $1.51 million per shop unit.

Under Master Plan 2008, the site is zoned for ‘Residential with Commercial at 1st Storey’, with a gross plot ratio of 1.6 and a 12-storey maximum height.

Oxley can redevelop the site into a project with a maximum gross floor area of 262,877 sq ft, assuming it is successful in buying the adjoining state land.

‘The site may be transformed into a condominium development with a trendy self-contained hub that offers an array of amenities and dining options to the residents in the West Coast locale,’ according to Credo’s Mr Tan.

This is believed to be Oxley’s biggest property acquisition to date.

The group, an exponent of shoebox units, has experience developing mixed developments with ground-floor shops and apartments above.
Source: Business Times © Singapore Press Holdings Ltd.

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