See Sim Lim Square Latest News: Sim Lim Square Launch En Bloc Sale 2019
Reputable gadget hub Sim Lim Square is set for en bloc sale route this 2019.
Reports reveal that the collective sale has been approved by over 80% of its owners. Actually, 80.82% owner by share value and 81.43% owners by strata area approved the site’s sale at Rochor Canal Road.
The consent was the result of the increased asking price from $1.1 billion to $1.3 billion as of February 1.
It can be noted that this 99-year leasehold property was completed in 1987 with about 7,260 square meters in land area and with a total of 492 units.
According to sales marketing agent, SLP Scotia, the tender for the en bloc sale route will be launched by the end of next month.
However, the reserve price for this sale remains undisclosed as of this report.
Commercial site Selegie Centre, located 300 meters from Sim Lim Square, recently enters developer landbank.
This is a freehold site being sold at S$120 million, which is actually on its third attempt for collective sale. The buyer thinks of developing a hotel inside the area.
Just 150 meters away from the sold en bloc is another freehold site called Golden Wall Centre which shows interest on the property in November 2018.
This transaction reached a sailing price of S$276.2 million or $2,331 psf ppr rate. Meanwhile, Worldwide Hotels plans to construct a new hotel in this area with approval from URA for hotel use.
James Koh Fragrance Group bags a price for Waterloo Apartments at S$131.1 million noting the sale price at S$2,172 psf ppr the same year. The group also announces the projected conversion of the 999-yr leasehold site into Hotel.
No wonder Sim Lim Square’s owners decide for the collective sale considering the commercial success of 3 en blocs around in 2018/19.
It even regards 2019 as the best, right time and the golden year for anything commercial.
Increase of Price
Sim Lim Square’s Collective Sale Committee chairman Vikas Gupta notes the feeling of its owners that the year is better than the previous when they reached $1.1 billion in price tag. Gupta made this statement while explaining the high asking price’s rationale.
Golden Wall and other transactions help boost the deal confidence of developers with its location near MRT station, square-shaped plot, and access to main roads.
Sim City Specialty Group manager Gupta describes the price very competitive. He notes that the achievement of the 80% owner consent is also considered as a big relief and a milestone.
He reveals the uphill challenge brought by the consent for the previous two years because of doubts on the commercial potential of the sale. The fact is that the majority of these doubters now support the sale.
Gupta continues in observing the disbelief of the doubters on the capability of CSC to reach the 80% consensus requirement.
He adds that disclosure of the property’s land rate will be in six weeks upon the launch of its tender.
Real estate consultancy Chris International director Chris Koh expresses some apprehensions on the existing market and in the search for an interested buyer.
Koh notes the increased asking price of several e-bloc projects to reach the 80 % consensus. Meanwhile, developers tend to be choosy having fixed budget making the market edgy.
He remains optimistic about the outcome of the deal because of its strategic location.