THOMSON View’s tender for collective sale closed with no bids on Sep 6, but owners of the condominium are looking to lower its reserve price from S$918 million to S$808 million as they move into private treaty negotiations.
Approximately 60 per cent of owners have consented to the reserve price, which is 12 per cent lower, according to marketing agent Edmund Tie.
At S$808 million, the land rate would translate to approximately S$1,176 per square foot per plot ratio (psf ppr), after factoring in both the land betterment charge and the lease upgrading premium to extend the lease to a fresh 99-year tenure.
Including an 8 per cent bonus floor area, the land rate would work out to S$1,141 psf ppr.
The new reserve price of S$808 million will take effect only after more than 80 per cent of owners by strata area and share value have signed the supplemental agreement, said Edmund Tie on Wednesday (Oct 9). The current land rate, based on a reserve price of S$918 million, remains at S$1,275 psf ppr.
With a land size of 50,197 square metres (sq m), the Thomson View site is zoned for “residential” use with a plot ratio of 2.1, which can yield a total gross floor area of 112,792 sq m or approximately 1.2 million sq ft.
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The current lease of the development started from 1975. It comprises 200 apartments, 54 townhouses and a shop unit.
Based on an average apartment size of 85 sq ft, the proposed redevelopment can include up to 1,240 new residential units.
No pre-application feasibility study is required, noted Edmund Tie’s head of investment advisory Swee Shou Fern.
“We believe that lowering the reserve price is a significant step towards creating the meeting of minds between developers and the owners of Thomson View Condominium,” Swee said.
She added: “Furthermore, the absence of new private housing projects in the neighbourhood provides developers with an opportunity to tap into demand from a sizeable pool of potential buyers.”
Thomson View was relaunched for collective sale in July this year, after a tender closed in February at the same guide price of S$918 million with no takers. There were also two unsuccessful tenders in November 2021 and May 2022 when the site was marketed at S$950 million.
Four earlier attempts to launch the site for sale in 2018 fell through. In 2013, Thomson View was marketed at S$590 million, but the deal was voided after the former marketing agent was found to have offered incentive payments to four owners to get them to sign the sale agreement.
Interested parties have until Nov 14 to make an offer before the 10-week private treaty period ends.
In February, owners at Pine Grove condominium lowered its reserve price by 8.7 per cent to S$1.78 billion in its fifth en bloc attempt. Despite this, the attempt did not succeed.
The last successful residential collective sale was 132 Sophia Road, which was sold for S$33.59 million at a land rate of S$1,172 psf ppr, below its guide price of S$35 million.
