Uol And Capitaland Acquire Thomson View Condo 810 Mil Biggest En Bloc Deal 2024
On Oct 26, UOL Group and CapitaLand Development (CLD) revealed their joint decision to purchase Thomson View condo for $810 million. This deal includes a put-and-call option agreement.
The impressive sales figures of Tenet in the previous year have instilled a sense of confidence in developers regarding the potential of the area. This is evident through the high demand for 616 units, with an average price of $1,382 per square foot, as of October 10. The Parcel B site’s prime location within an established estate, near the Tampines North MRT Station and a future mixed-use development at Tampines Avenue 11, only adds to its appeal. These promising factors have also caught the attention of Aurelle of Tampines EC, further cementing the area’s potential in the market.
Thomson View is a private condo located on Bright Hill Drive, with 255 units. The development was completed in 1987 and sits on a 504,314 sq ft site with a 99-year lease from Apr 7, 1975 and a plot ratio of 2.1.
UOL is acquiring the site through its subsidiary Singapore Land Group, while CLD is acquiring it through its indirectly owned subsidiary, CL Onyx Pte Ltd. As part of the agreement, both companies will undertake the acquisition on a 50:50 basis.
Earlier in February this year, Thomson View was put up for tender at $918 million, with Edmund Tie as the marketing agent. However, a second tender in July closed on Sept 6 with no bids.
In response, Edmund Tie relaunched the collective sale in October, with the tender closing on Oct 25 at 3 pm. The reserve price remained at $918 million under the collective sale agreement. However, owners had signed a supplemental agreement to lower the reserve price to $808 million, with about 65% of the owners agreeing to the revised price.
According to Swee Shou Fern, head of investment advisory at Edmund Tie, there has been renewed interest from developers, leading to site viewings and discussions with several parties.
At $810 million, the price is 11.8% lower than the original reserve price of $918 million. The deal is still expected to be the biggest en bloc transaction this year.
After factoring in land betterment charges and a lease upgrading premium for a fresh 99-year lease, the price translates to $1,178 psf per plot ratio (ppr). However, the option to purchase is subject to 80% of the strata-titled owners agreeing to the price.
In a joint statement, UOL Group CEO Liam Wee Sin and CapitaLand Development CEO Tan Yew Chin stated that the Thomson View site has exceptional locational attributes, with Upper Thomson MRT Station at its doorstep, renowned schools such as Ai Tong School within a 1km radius, and various amenities including Thomson Plaza. The site also boasts unblocked views and close proximity to parks and nature reserves.
