UOL Group and Singapore Land Group have formed a joint venture to purchase Watten Estate Condominium, located in Shelford Road, Bukit Timah’s prime Bukit Timah location. The site was won with a $550.8 million bid.
Belgravia Ace showflat address can be found just a few kilometers from Ang Mo Kio MRT Station, on the North-South MRT Line.
Tan Hong Boon (executive director of capital markets at JLL), the sole marketing agent who brokered the sale, said that the price represents a land rate per plot of $1,723 psf (psf.ppr). This includes 8% bonus gross area and the corresponding development cost. Rajah & Tann Singapore LLP represented the vendors in this collective sale.
Watten Estate condominium was built in 1983. It has 104 units that include apartments and townhouses. It is situated on an elevated freehold site of 220,241 square feet zoned residentially under the Urban Redevelopment Authority’s 2019 Master Plan. Based on the 100-square-meter minimum size (1,076.4 sq. ft), it could be developed into a condominium housing 286 units.
Tan, JLL’s associate, states that the site is situated in a predominantly low-rise, land-based housing estate. This means that the proposed development would have unobstructed views of the greenery surrounding it. He adds that Watten Estate Condominium, a popular District 11 address is within 1km of Nanyang Primary School and Raffles Girls’ Primary School.
The condo was originally offered for sale in July 2019, at $536 million.
The condo was re-listed in September for collective sale by tender at a minimum of $500 million.
On October 27, the members of the sale commission accepted the $550.8 million offer. Tan adds that the bid price could result in gross sales proceeds between $3.1 million to $6.5 million for the owners.
More than 80% of the owners have agreed to the sale. However, there are several conditions, including an order by the Strata Titles Board and the court.
The total consideration will include 5%, plus the tender fee. Payments will be made within seven days of the awarding of the tender. The notice of receipt of sale approval will provide another 5% payment within seven days. The remaining 90% will be paid after legal completion.
UOL Group and Singapore Land Group say that the consideration will be funded mainly through bank borrowings and internal resources.
United Venture Development (No. UOL Venture Investments (No. 4) or UVD4 is the entity that created the 80:20 joint venture company, named United Venture Development (No.
UOL Venture holds 40 ordinary shares worth $1 each, which represents an 80% interest. Singapore Land Group, on the other hand, has 10 ordinary shares worth 20% or a 20% share in the JV.
The JV was established in Singapore on December 3, 2012.
Both companies will sign an agreement to formalize the terms of their JV in connection with the acquisition.
Each shareholder will have the right to nominate directors for UVD4’s board. Parties will also agree to contribute sufficient funds to allow the acquisition to be completed.
Under the terms of the SGX listing guide, the JV is considered to be an interested person transaction.
Wee Cho Yaw is the chairman of SingLand, UOL and is also the director and controlling shareholder. Wee Ee Lim is the son and chief executive officer of SingLand. He is also the deputy chairman and director of UOL. Liam Wee Sin, a director of SingLand as well as UOL, is the group CEO of UOL.
The current FY with UOL has seen approximately $382.1 million in total transactions.