Laguna Park Goes En Bloc
Friday, 4th September 2009
Laguna Park was put up for collective sale yesterday with a price tag of $1.2billion. The large 30-year-old condominium has been in the headlines over a spate of vandalism attacks on residents who were not keen on the sale. Despite its troubles, the estate attained the crucial 80per cent consent level from its owners last December 2008. But the tender exercise was put on hold until now for the right time as recently major developers have returned to the land market with confidence.
If it succeeds in finding a buyer, Laguna Park will be the second billion-dollar en bloc deal here, after the 618-unit Farrer Court was sold to a CapitaLand-led consortium for $1.34 billion in 2007. At the current price, most owners will receive $2.1million to $2.3million, while the penthouses will fetch between $3.5million and $4.1million. This price, which works out to about $1,300 to 1,400 psf depending on the unit size, is double the price such units have been fetching in recent months – about $682 psf- even in the bullish market. Industry analysts are speculating that the overall price tag – at $1.6billion, including an estimated $400 million payable to the Government for development charges and a fresh top-up of the lease – is a little too much money to payout.
Laguna Park is formerly HUDC (part of Singapore public housing scheme) estate which was privatised in 2007. The condominium has a land area of about 677,493 sq ft and a gross plot ratio of 2.8. The land price for the condominium, which has 67 years left on its lease, works out to about $844 per sq ft per plot ratio, including the $400million payable.
At this price, the successful purchaser could break even at about $1,200 to $1,250 psf. The new development would be priced at $1,500 to $1,600 psf. The tender closes on 13 October 2009 at 3pm.