Toronto-based commercial real estate services firm Colliers International on Thursday announced the sale of freehold residential property Tulip Garden to Singapore-based Asia Radiant Pte Ltd for S$906.9 million (about $692 million).
The deal marks the second largest collective sale to date in 2018, Colliers said in a statement.
The sale price of the development is 20.4 per cent higher than the owners’ reserve price of S$753 million. At S$906.9 million, the sale price works out to a land rate of S$1,790 per square foot per plot ratio (psf ppr), surpassing that of recent collective sale transactions in the area, the statement added.
“This is our fourth try at collective sale and we know marketing such a large site was not an easy task. Hence, we are very pleased that Colliers, with its vast network of investors and expertise, has successfully brokered a deal,” said Ng Kee Wah, Chairman of the Tulip Garden Collective Sale Committee.
Spanning 29,423.2 square metres in land size, Tulip Garden is located on Farrer Road in District 10, Singapore. Under the Master Plan 2014, its site is zoned residential with a gross plot ratio of 1.6 and an allowable height of up to 12 storeys. It comprises 162 units of apartments and maisonettes and two shop units.
Depending on the size of the property, each residential unit owner could receive between S$4.3 million and S$7.6 million from the successful sale of the development.
Tang Wei Leng, Managing Director at Colliers International, said, “Despite a spate of collective sale deals done in the Holland Road area in recent months and a large slate of redevelopment sites on the market, the tender for Tulip Garden still attracted very keen interest – a testament to its excellent locational attributes. The healthy demand for and firmer prices of residential sites reflect the optimism and rising confidence among developers of a more definitive recovery in the Singapore property market.”
Since September 2017, Colliers International has sold five residential collective sale sites – Jervois Gardens, Parkway Mansion, City Towers, Pearlbank Apartments and Tulip Garden – with a combined value of over S$2.2 billion. The collective sale tender for Tulip Garden was launched on February 28 and closed on April 11.