Freehold property at Bedok sold for $220m but is en bloc fever cooling?

commercial property purchase

Eunos Mansion a freehold property located at Bedok Reservoir Road  has gone for $220 million to a subsidiary of the Fragrance Group. Completed in 1982, the development comprises 105 units and 2 penthouses.  Each unit owner is expected to receive between $1.48m to $2.19m. The penthouse owners will receive $3.55m and $4.7m, respectively. The land rate of $1,118 per plot ratio is based on a site area of 111,735 sqft and a plot ratio of 1.6.

freehold propertyThe Land Titles (Strata) Act requires older buildings (such as the freehold property at Jalan Eunos) to obtain 80 per cent consent from owners before allowing the collective sale to go through. The marketing agent of Cushman & Wakefield, which brokered the deal of the freehold property, said the 80 per cent consensus was achieved in just three weeks from the date of the Extraordinary General Meeting.

Shaun Poh, Executive Director of  Cushman & Wakefield Capital Markets said, “Eunos Mansion offers an excellent opportunity for the development of a mid-sized condominium project to complement the up and coming Paya Lebar Regional Centre and the business parks located in the mature estate of Eunos and Bedok Reservoir. There is also an undersupply of (freehold property) available for sale at this locality which presents a favourable market for the developer.”

The sale of Eunos Mansion follows the sale of freehold property in Lorong 24 Geylang. Development 24 recently completed the acquisition of several land parcels at 31 to 51 (odd) Lorong 24 in Geylang for a total of $60 million. Development 24 is a joint-venture between Heeton Holdings, Lian Beng Group and KSH Holdings.

The collective sales of properties like Eunos Mansion and the freehold property at Lorong 24 Geylang, as well as the  Toho Mansion, were part of last year’s en bloc revival which saw 28 residential sites and three commercial or industrial sites sold for a total of S$8.73 billion.

There are, however, several other collective sale sites launched since December that have not concluded after their tenders closed. The owners of these sites may enter into a private treaty contract with a buyer within 10 weeks from the close of the public tender.

Pearlbank Apartments, one such site launched late last year, was sold to Capitaland for S$728 million through a private treaty.

Read up more on property buying in Singapore to know what is noise and what is real, or click here for the Ultimate Guide on Property Buying in Singapore.

Written by Ravi Chandran

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