Uol And Capitaland Acquire Thomson View Condo 810 Mil Biggest En Bloc Deal 2024
The $810 million acquisition of Thomson View condo by UOL Group and CapitaLand Development (CLD) has been announced on Oct 26, through a put-and-call option agreement.
The private 255-unit condo is located on Bright Hill Drive and was completed in 1987. Sitting on a 504,314 sq ft site with a 99-year lease from Apr 7, 1975, and a plot ratio of 2.1, it has been acquired by UOL’s wholly-owned subsidiary, Singapore Land Group, and CLD’s indirect wholly-owned subsidiary, CL Onyx Pte Ltd.
As part of the agreement, United Venture Development and CLD’s CL Onyx will undertake the acquisition on a 50:50 basis.
Originally put up for tender in February this year at $918 million through marketing agent Edmund Tie, a second tender in July did not result in any bids and closed on Sept 6. However, a relaunch of the collective sale was announced on Oct 18, with the tender closing on Oct 25 at 3 pm.
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The reserve price remains at $918 million under the collective sale agreement, but owners had started signing a supplemental agreement to lower the price to $808 million. Over two weeks, around 65% of owners agreed to the revised price, only taking effect after 80% of owners by strata area and share value have signed the supplemental agreement.
Edmund Tie’s Swee Shou Fern, head of investment advisory, says there has been renewed interest from developers and site viewings and discussions with several interested parties were conducted in the past couple of weeks.
At $810 million, the price is 11.8% lower than the reserve price of $918 million and if the deal goes through, Thomson View will be the biggest en bloc deal this year.
The price of $810 million equals to $1,178 psf per plot ratio (ppr) after accounting for the land betterment charges and a lease upgrading premium for a fresh 99-year lease. 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 say, “The Thomson View site is an elevated, sprawling 5-ha site that enjoys spectacular unblocked views. This site has very strong locational attributes, with Upper Thomson MRT Station at its doorstep, popular schools such as Ai Tong School within a 1km radius, nearby amenities including Thomson Plaza, and close proximity to parks and nature reserves.”