A YANLORD Land Group and MCL Land joint venture has successfully bagged the freehold Tulip Garden for S$906.889 million, the nation's second largest collective sales deal so far in 2018.
The sale price is 20.4 per cent higher than the reserve price of S$753 million for the 316,708 sq ft freehold estate when the tender was launched on Feb 28.
The tender also marks Yanlord's maiden entry into Singapore's prime freehold residential property market.
Tulip Garden comprises 162 apartments and maisonettes and two shop units. It is located in District 10 close to Holland Village and a Good Class Bungalow area.
Depending on the size, which ranges from 1,701 sq ft to 3,412 sq ft, each residential unit owner could receive between S$4.3 million and S$7.6 million.
The sale price works out to a land rate of S$1,790 per sq ft per plot ratio (psf ppr).
This is higher than recent collective sales transactions in the area such as the S$1,703 psf ppr for Hollandia, S$1,654 psf ppr for The Estoril and S$1,536 psf ppr for The Wilshire, said marketing agent Colliers International in a statement.
Tang Wei Leng, managing director at Colliers International, said: "Despite a spate of collective sale deals done in the Holland Road area in recent months and a large slate of redevelopment sites on the market, the tender for Tulip Garden still attracted very keen interest - a testament to its excellent locational attributes."
Targeted for completion by 2023, the redeveloped project could potentially yield up to 670 residential units with its plot ratio of 1.6, said Yanlord in a Singapore Exchange announcement after trading hours on April 12.
It is zoned for an allowable height of up to 12 storeys. No development charge is payable for redevelopment up to a gross plot ratio of 1.6, said marketing agent Colliers International in a statement.
The acquisition is being made by Asia Radiant, an entity jointly held by the mainboard-listed Yanlord, a China developer of high-end property projects, and MCL, a unit of Hongkong Land Holdings.
Yanlord has developed large-scale residential property developments in China such as Yanlord Gardens, Yanlord Riverside Gardens and Yanlord Riverside City in Shanghai and Orchid Mansions, Bamboo Gardens and Yanlord International Apartments in Nanjing.
"As a key global financial centre, Singapore's residential market presents a good value proposition for developers seeking to develop additional growth opportunities," Yanlord's chairman and chief executive Zhong Sheng Jian said in the announcement. "With a mature suite of lifestyle offerings, this freehold site has strong potential for development and leveraging on our development capabilities as well as that of our partner, we hope to develop this land parcel into a new landmark development."
MCL Land also clinched another huge en bloc site when it bought Eunosville for S$765.78 million in 2017.
So far this year, the highest residential collective sale deal belongs to Pacific Mansion in River Valley, which was acquired for $980 million by Singapore-listed GuocoLand, along with Intrepid Investments and Hong Realty.
It is a case of fourth time lucky for Tulip Garden owners. The development was sold in July 2007 during its first try, but the buyer - a consortium led by Bravo Building Construction - backed out after it had trouble raising funds.
"The owners are extremely delighted with the excellent outcome achieved by Colliers for the Tulip Garden tender," said Ng Kee Wah, chairman of the collective sale committee. "The price garnered in the deal was over and beyond our expectation."
Yanlord said the acquisition and development of the project will be financed by internal resources and bank borrowings.
Yanlord rose 2 Singapore cents to close at S$1.75 before the announcement was made.