Raintree Gardens has been purchased by a joint venture of United Industrial Corporation and UOL Group, UVD for S$ 334.2 million after winning the bid. The property; which is located in Potong Pasir is an en bloc sale that was put up in September with over 80% of the owner consenting to the sale. The site was bid by 5 developers.
The amount realized was close to the S$315 million that was the asking price.
Raintree Gardens en bloc sale will be approximately S$797 per sq ft ppr including the premium needed to top up and renew the lease to 99 years. The property has 175 units and each owner will get about $1.89 m for every unit.
The Raintree Gardens en bloc sale was the first attempt since its privatization in July 2014. It was built by Housing and Urban Development Company in the late 80s comprising of 2 mansionette blocks of 12 storeys each and 1 mansionette block with 7 storeys. It has approximately 201,405 sq ft land area.
The transaction caused the collective sales transactions for 2016 to hit a total value of over $1 billion. This is the highest amount recorded since 2012 when 19 en-bloc deals transacted $1.2 billion.
According to market watchers, the owners of Raintree Gardens received a good price. Also, the condo to be launched on the site in future would be attractive to buyers due to its close proximity to the Bidadari estate that is coming up.
The developers are well-established and have other great projects such as Botanique at Bartley, Principal Garden and the Thomson Three that was completed recently. Based on this, the developers are expected to build another high-class residential development on the site.
Lately, competition for land has intensified since developers are busy trying to replenish their diminishing land banks. Roxy-Pacific and Qingjian Realty are currently making headlines with the recent en bloc sales for Harbour View Gardens and Shunfu Ville.
Nearby developments for comparison includes The Venue Residences, a mixed development as well as the Poiz Residences by MCC Land. Also find out another upcoming residential development by UOL at Clementi, The Clement Canopy.