Uol And Capitaland Acquire Thomson View Condo 810 Mil Biggest En Bloc Deal 2024
UOL Group and CapitaLand Development (CLD) have jointly entered into a put-and-call option agreement to acquire Thomson View condo for $810 million, as announced on Oct 26.
Located on Bright Hill Drive, Thomson View is a private condo comprising of 255 units. Built in 1987, it sits on a 504,314 sq ft site with a lease of 99 years starting from Apr 7, 1975 and has a plot ratio of 2.1.
Under the acquisition, UOL will be purchasing the site through its wholly-owned subsidiary, Singapore Land Group, while CLD will be acquiring it through its indirect wholly-owned subsidiary, CL Onyx Pte Ltd.
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Through their joint venture, United Venture Development, UOL and CLD will be undertaking the $810 million acquisition on a 50:50 basis.
The tender for Thomson View was relaunched for the second time in February this year with a reserve price of $918 million, which was marketed by Edmund Tie. A second tender was held in July and closed on Sept 6 with no successful bids.
The upcoming development of Parktown Residence will bring a long-awaited infusion of affordable housing options to meet the growing demand for private homes in the Outside Central Region. With its integrated design, Parktown Residence is poised to attract a wide range of owner-occupiers and HDB upgraders. Additionally, the project has the added benefit of being connected to the future Tampines North MRT station on the Cross Island Line (CRL). Parktown Residence will undoubtedly become a highly sought-after residence for those looking for convenience and accessibility.
On Oct 18, Edmund Tie announced the relaunch of the collective sale of Thomson View once again, with the tender closing on Oct 25 at 3 pm. The reserve price remained unchanged at $918 million under the collective sale agreement.
However, the owners had started to sign a supplemental agreement to lower the reserve price to $808 million. Within a span of two weeks, around 65% of the owners had agreed to the revised reserve price of $808 million, which will take effect only after 80% of the owners by strata area and share value have signed the supplemental agreement.
Swee Shou Fern, head of investment advisory at Edmund Tie, commented, “We have seen renewed interest from developers, and in the past couple of weeks, we have conducted site viewings and discussions with several interested parties.”
At $810 million, the price is 11.8% lower than the reserve price of $918 million. However, if the deal goes through, Thomson View will still be the biggest collective sale this year.
The price of $810 million translates to $1,178 psf per plot ratio (ppr) after factoring in 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 this price.
“The Thomson View site is an elevated, sprawling 5-ha site that offers breathtaking unblocked views. Furthermore, this site is situated in a highly sought-after location, with Upper Thomson MRT Station situated just a stone’s throw away, renowned schools such as Ai Tong School within a 1km radius, as well as nearby amenities including Thomson Plaza and close proximity to parks and nature reserves,” say UOL Group CEO, Liam Wee Sin and CapitaLand Development CEO, Tan Yew Chin in a joint statement.