Mandarin Gardens owners approve $2.48b price tag
If the Mandarin Gardens condominium does go on the market, potential developers could be looking at an overall price tag of $4 billion to acquire the property.
Marketing agent C&H Properties said this to owners at the second extraordinary general meeting on Sunday afternoon, when the owners approved an asking price of $2.48 billion as well as the method of apportionment.
The owners also approved the collective sale agreement at the meeting held at Touch Centre in Marine Parade Central, according to C&H Properties key executive officer Nelson Lim.
With that approval, the 99-year leasehold estate in Siglap Road has begun the process of collecting signatures from owners to get the requisite 80 per cent for the collective sale to be launched.
"In the optimal situation, we hope to get the 80 per cent in three months, but looking at the size of Mandarin Gardens, it might take a bit more time," said Mr Lim.
In addition to the asking price, buyers would have to pay an estimated $325.4 million as a top-up for a fresh lease, as well as an estimated $1.28 billion in differential premium payable to the Government.
All that could bring the total tab to nearly $4.09 billion, which translates to $1,236 per sq ft per plot ratio.
Mr Lim said C&H Properties is expecting a consortium of developers to go for the land, given the size. The 1,006-unit development sits on a one million sq ft plot.
He also said lawyers stressed to owners during the meeting that there would be procedural and legal measures in place to ensure there is no conflict of interest arising from C&H being majority-owned by a real estate company.
Wen Way Investments, the real estate arm of Chinese conglomerate Amer International Group, acquired the majority stake of C&H Properties' parent company C&H Group in 2013.
If the sale does eventually go through, Mandarin Gardens could break the existing record for the largest collective sale in Singapore by dollar value.
That record is currently held by the former Farrer Court, which went for $1.3388 billion in 2007 when a consortium bought the 838,488 sq ft estate and redeveloped it into D'Leedon.
The second-largest collective sale deal here belongs to Pacific Mansion in River Valley. It was acquired last week by Singapore-listed GuocoLand, along with Intrepid Investments and Hong Realty, for $980 million.