Chuan Park is Singapore’s biggest en bloc deal for Former Chuan Park Enbloc

The owners of the Chuan Park condominium are not satisfied with the collective sale process. A number of them have filed an objection with the Strata Titles Board. The main complaint is that the price was lower than what was previously disclosed. In fact, the plot ratio was reduced from 2.4 to 2.1, allowing an extra 11,671 sqm of built-up space to be sold for higher profits. In addition, they say the Collective Sale Committee (CSC) and marketing agent ERA failed to disclose the true value of the condominium.

After the failure of the first collective sale attempt, Chuan Park owners relaunched the tender process last year. This time, they got an eight-hundred million-dollar bid for their condo. However, the owners had to wait another six months for this to occur. After this, they decided to reduce the price to 820 million.

The government does not like to interfere in en bloc deals for Former Chuan Park Enbloc. However, there are several ways to protect homeowners from being sold off. One way is to create a neutral panel to advise homeowners. However, the panel should be approved by the authorities. Despite these suggestions, some homeowners feel they are being thrown to the wolves. Many of them end up more confused than when they started the process. Chuan Park is the biggest en bloc deal in Singapore since Tulip Garden in January 2019.

Chuan Park Enbloc by Kingsford Group and MCC Land – Four Attempts at Collective Sale

This article will discuss the Former Chuan Park Enbloc and its Four attempts at collective sale. We will examine the Reserve price, Share value, and four attempts at collective sale. And we will look at the four unsuccessful attempts. Let’s see what went wrong. In the first attempt, the reserve price was lower than the final offer price.

Former Chuan Park Enbloc

A new collective sale site has been launched in Singapore and that site is called Former Chuan Park Enbloc. The project, which is on 400,588 square feet of land, has 444 residential units and two commercial units. Its gross plot ratio is 2.1. If all the units are sold at once, the development could yield up to 900 private homes. It would be the largest collective sale in 2022.

The developers behind Former Chuan Park Enbloc development are Kingsford Group and MCC Land. They had already worked together on the Normanton Park project, which has sold out more than 1,862 units in a year and a half. It comprises nine residential buildings with 24 storeys each. The project has consistently topped condo sales this year, with a median price of S$1,864 per square foot.

The government does not like to get involved in en-bloc proceedings, but it might be a good idea to have a neutral panel to advise homeowners who face an en-bloc sale. Such a panel may be approved by the authorities, but it is not a guaranteed solution. Many homeowners report that they feel like they are being thrown to the wolves, and that the meetings only leave them more confused than when they started. In fact, Kingsford and MCC Land are holding a special meeting for Chuan Park owners on 25 July to update them on the development.

Former Chuan Park Enbloc Share value

Currently, the share value of Former Chuan Park Enbloc is unknown. The developer has been in negotiations with a third party to sell the development for S$890 million. This would make it the largest collective sale in Singapore in 2022. However, en-bloc sales are not always free from problems. For instance, the Tanglin Shopping Centre was sold earlier this year for S$868 million. The developer, ERA Realty, has refused to reveal the identity of the buyer, saying it is not allowed to do so without consent.

This is the second time that a collective sale has been tried for Former Chuan Park Enbloc. However, the previous attempt failed to attract sufficient bids. This time, the developers had to resort to the private treaty method. This time, they succeeded in securing a final price of S$890 million, which was 5.11% below the previous reserve price.

Although this scenario is unusual, it does happen. It is important to note that an offer below the reserve price is likely to be rejected. That is why it is important to set a minimum price for your en bloc. Otherwise, the enbloc will fall through.

Former Chuan Park Enbloc Reserve price

The Chuan Park Enbloc by Kingsford Group and MCC Land Reserve price has dropped to S$938 million, which is slightly lower than the reserve price. It took four attempts to sell the en bloc property, which is one of the largest sales in Singapore this year. The last time the developers tried to sell it, the price was $900 million.

The en-bloc sale is fraught with controversy. Some homeowners are unhappy with the individual valuations while others aren’t happy with the lack of a universal MOA. Regardless, the process will continue to be controversial, adding further uncertainty to the entire process.

Previously, Kingsford was a bidder in the adjacent Slim Barracks Rise GLS tender. It reportedly bid S$320.1 million, or $1,246 psf, but that was still $4 million lower than the top bidder EL Development.

Four attempts at collective sale for Former Chuan Park Enbloc

The fourth attempt at collective sale of Chuan Park, a development in Changi, has failed to meet the original reserve price. The buyers have complained of missing updates and a lack of transparency. The developers have responded with a series of notices to owners. The first notice required owners to indicate their reserve price and, if the property is sold, to state the final offer price. However, some owners say they have been confused between the reserve price ($938 million) and the final offer price ($90 million).

The government doesn’t usually intervene in en-bloc negotiations, but it could help homeowners facing the en-bloc by appointing a neutral panel to provide advice and information. Such a panel would be approved by the authorities and might help to avoid legal pitfalls. However, some homeowners feel they have been thrown into the deep end and emerge from meetings more confused than before. In the case of Chuan Park Enbloc, objectors prefer to consider share value as the MOA. They believe that it is not fair and they should have the right to decide their own price.

While the current offer price of Chuan Park Enbloc by Kingsfford and MCC Land appears to be more attractive than the previous offers, a lower reserve price may provide a second chance for the project. Besides, the deal price could also be a boost for other collective sale hopefuls.