Pine Grove to launch fifth collective sale attempt at $1.78 bil valuation
The 660-unit Pine Grove will make its fifth collective sale attempt, with the next tender to launch on Mar 6. The privatised Housing and Urban Development Co. (HUDC) estate, which is currently priced at $1.95 billion, will be relaunched at its valuation of $1.78 billion. “It is the lowest we can go,” says Benjamin Poh, ERA senior division director and the appointed marketing agent for Pine Grove’s collective sale.
An extraordinary general meeting was held on Jan 21 to get the owners’ consent on the lower reserve price. Over 60% of the owners have signed the supplemental joint agreement at the revised price of $1.78 billion. The revised land rate is therefore estimated at $1,335 psf per plot ratio (psf ppr), including 10% bonus gross floor area (GFA) for balconies, and after factoring in the lease top-up and land betterment charges.
The new price tag is 8.7% lower than the previous reserve price of $1.95 billion when Pine Grove was launched for tender last September. The land rate then was $1,434 psf ppr. The last tender closed on Nov 29, followed by a 10-week private treaty period that ended on Feb 7. According to Poh, while there were expressions of interest, no formal offer was made.
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Pine Grove was completed 40 years ago, with a 99-year lease from 1984. Hence, it has a remaining lease of 59 years. It is located within 1km of Henry Park Primary School and sits in the prime residential neighbourhood of District 21.
The 893,219 sq ft site with a plot ratio of 2.1 can be redeveloped into a new 2,050-unit private condo. “It’s rare to find such a large plot for a mega-development,” says Poh.
Two parcels of land next to Pine Grove were launched for sale under the Government Land Sales (GLS) programme. The first site, Pine Grove (Parcel A), was launched for tender and closed in June 2022. It drew five bids, with the winning bid of $671.5 million submitted by an 80:20 joint venture between UOL Group and Singapore Land Group. The price translates to a land rate of $1,318 psf ppr.
The 242,188 sq ft, 99-year leasehold site was launched as the 520-unit Pinetree Hill in July 2023. Based on caveats lodged, Pinetree Hill is 35% sold at an average price of $2,399 psf.
The tender for the adjacent GLS site, Pine Grove (Parcel B), closed on Nov 7 with three bids. The highest bid of $692.388 million came from a joint venture between Sinarmas Land and MCL Land. The price submitted by the joint venture partners translated to a land rate of $1,223 psf ppr, which is 7.2% lower than the $1,318 psf ppr that UOL and SingLand had paid for the neighbouring Parcel A.
The 269,552 sq ft, 99-year leasehold site at Parcel B can be developed into a new private residential project of 565 units. Property analysts estimate the selling price of the new project to be in the range of $2,300 to $2,400 psf, in line with that of Pinetree Hill. The new project at Parcel B has yet to be launched.
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Meanwhile, the last transaction at Pine Grove estate was for a 1,755 sq ft, three-bedroom unit on the third floor of one of the blocks. According to caveats lodged, it changed hands for $1.86 million ($1,060 psf) at the end of August 2023. Another three-bedroom unit of 1,668 sq ft on the 16th floor of another block fetched $1.85 million ($1,109 psf) in mid-August.
“The sale of the two GLS sites at Pine Grove Parcel A and B provides a good benchmark for developers on the land value and housing demand in the Ulu Pandan area,” says ERA’s Poh.
He is hopeful of securing an 80% agreement before the next collective sale tender. It will be the fifth collective sale attempt by the owners of Pine Grove since 2008, and it’s the third time the estate has secured the requisite 80% consensus among the owners.
Another collective sale that found a buyer after its fifth attempt was Pearl Bank Apartments (with 280 apartments and eight strata shops), which was sold to CapitaLand for $728 million in February 2018. It was launched as the new 774-unit, 99-year leasehold One Pearl Bank in July 2019. One Pearl Bank was entirely sold by October 2023 when its last unit – the final of four penthouses – of 2,788 sq ft found a buyer at $7.1 million ($2,547 psf).
Meanwhile, Peace Centre/Peace Mansion at 1 Sophia Road was sold for $650 million in December 2021 in its fifth collective sale attempt. The mixed-use development was zoned for commercial use by URA and completed in 1977. It has a 99-year lease from 1970. The buyers were a joint venture of Chip Eng Seng, SingHaiyi Group, KSH Holdings, SLB Development and Ho Lee Group.
Based on the sale price of $650 million, the land rate translates to $1,388 psf ppr after factoring in the lease top-up premium, land betterment charges and 7% bonus GFA for balconies in the residential component.
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The new development on the site, One Sophia, will be a mixed-use development comprising two 19-storey residential blocks with 367 apartments, a 13-storey block of offices with retail in the basement level, and three basement levels of car parking. It is expected to be launched sometime in 3Q/4Q 2024.
Pine Grove is scheduled for launch on Mar 6, with the tender closing two months later on May 5.
Source : https://www.edgeprop.sg/property-news/pine-grove-launch-fifth-collective-sale-attempt-priced-valuation-178-bil
