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Dublin Lodge en bloc sale launched with $67.55 million reserve price

image: Knight Frank Singapore

All the owners of the eight strata terraced houses at Dublin Lodge have agreed to put up the property for en bloc sale

Knight Frank Singapore announced on 25 February the launch of the sale of Dublin Lodge by tender. Representing the interests of the owners of Dublin Lodge, Knight Frank Singapore is the exclusive marketing agent of the redevelopment land situated along Dublin Road, off Killiney Road.

dublin lodge
image: Knight Frank Singapore

Dublin Lodge is a freehold two-storey residential development comprising 8 strata terraces ranging from 238 sq m to 240 sq m in floor area.

The development has a site area of 2,510.2 sq m (approx. 27,020 sq ft) and is zoned “Residential, 2-storey Mixed Landed” in URA Master Plan 2019.

Situated in one of the most prime districts in Singapore in an exclusive cul-de-sac, the site of Dublin Lodge sits on levelled grounds and is regular in shape. The site has a generous frontage of more than 55 metres onto Dublin Road, with a depth of more than 40 metres. Apart from the potential to retain its current use as strata terraces, it allows for a single mansion to be built or can be subdivided up to 11 terrace land parcels, subject to approval by the relevant authorities.

The development is located close to the heart of Singapore’s main shopping belt, Orchard Road, offering endless entertainment, dining and shopping options. Somerset MRT Station and Dhoby Ghaut MRT Interchange are conveniently accessible, each between five-minutes’ and ten-minutes’ walk respectively.

The owners of Dublin Lodge expect offers above the reserve price of S$67.55 million for the prime land, which translates to approximately S$2,500 psf on the land area. All owners of Dublin Lodge have consented to the sale. Application to Strata Titles Board for the order of sale will not be required.

Mr Ian Loh, Head of Capital Markets (Land & Building, Collective & Strata Sales), Knight Frank Singapore, shares, “Dublin Lodge poses extraordinary opportunities for homeowners and developers who are keen to tap on the thriving landed market. Such redevelopment opportunities are rare to come by due to the limited supply of landed homes, especially in the heart of Singapore’s shopping district. While located within the bustling city centre, the development remains in a serene area, away from the noise and the traffic.”

The tender for Dublin Lodge will close on 6 April 2021, Tuesday at 3.00 pm.

As the collective sale fever tries to make a come back, some smaller en bloc projects are getting better results and successes. Ten years ago, when the collective sale scene was more active a number of en bloc sales were called off because the developers were weak and could not raise sufficient capital and loans to complete the transactions. This proved disappointing for some subsidiary proprietors (SP) as they had  committed to purchasing their next homes before the en bloc sales were aborted.

What happened then is unlikely to be repeated this time around as most developers have built up a huge war chest of capital over the past few years. But still, SP and strata apartment unit owners should get involved and understand the deal that is being put together.

KEEPING TRACK OF MILESTONES

As an SP, you should always keep track of all the milestones leading to the conclusion of your en bloc sales-  milestones like when your Sales Committee (SC) was formed, Extra-Ordinary General Meetings, Updates from SC, etc. Most importantly don’t rely on any knowledge or information you may have gleaned from your en bloc experience in the past.

The en bloc regulations have been more firmly tightened, and the process strictly regulated in the past few years.  The tighter laws we now have means the responsibilities of the SC, the property consultants, and the lawyers, are all well defined, which provides for better transparency of the en bloc processes.

IT’S NOT OVER TILL IT IS OVER

Don’t think that just because a qualified developer has made a bid at or above the reserve price, and just because the SC has agreed to accept the bid on behalf of the SP, the transaction is considered done. Some SP may still raise objection to the en bloc sales and if they do, the Strata Title Board (STB) is obliged to hear their case. The entire en bloc transaction can be stopped from proceeding further if the dissenters can prove that the SC  did not abide by correct procedures.

TIME TO MOVE OUT

Once the STB gives the stamp of approval for the en bloc sales, the winning developer will have to give you at least 6 months for you to move out of your property. The funds from the en bloc sales would also have been transferred to you by this time, but a significant portion of your proceeds will go towards offsetting any existing loans you may have with the bank, as well as any CPF funds used for purchase of your previous unit. The 6-month period may be sufficient time for most SP to arrange sufficient finances to find another suitable home.

CONSIDER ALL OPTIONS

Whether you are considering to rent or to downgrade to a smaller apartment, consider all options carefully. Everybody’s needs and comfort-levels are different. Just because one housing option works for someone, it doesn’t mean that the same option will work for you and your family. As soon as you are sure that your en bloc sales will conclude without any hassle,  you should be speaking to a trusted property advisor. The advisor would be best placed to guide you through your next housing option.

Timeline and Milestones of an En Bloc Sales Process

In order to understand how and whether to go into an En Bloc sales and sign on the Collective Sales Agreement (CSA), you will need to know how long it will take you to complete the En Bloc sales in case it is successful.

Stage Milestone Duration (Est.) Timeline (months)
1 1st EOGM to appoint CSC. 1 month 1
2 2nd EOGM to appoint Marketing agents, solicitors and approve CSA. 1-2 months 2 – 3
3 Signing of Collective Sales Agreement (CSA) 12 months 3 to 15
4 Owners meeting prior to launch of public tender for sale 1-2 months 4 to 17
5 Launch and close of tender 1 month (Max) 5 to 18
6 Award of tender.
7 Negotiate sale by private treaty (if bidding falls below reserve price) 10 weeks (Max) 7.5 to 20.5
8 Apply to STB or High Court 3 – 9 months 10.5 to 29.5
9 Completion of sale 3 months 13.5 to 32.5
10 Handover of vacant possession 6 months 18.5 to 38.5

The maximum and minimum duration of the en bloc sales process as indicated in the cumulative timeline in the table is roughly between 18.5 months to 38.5 months.

The earliest any home owners can receive any en bloc sales proceeds could be around 13.5 months and the latest will be 32.5 months.

Written by Ravi Chandran

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