It has been recently confirmed that one of Sin Capital Group’s members has closed on a deal to purchase the 26 storey Thong Sia building situated at Bideford Road, just across from The Paragon. Sin Capital Group is an Asian private investment group.
So far this year, this will be Singapore’s first collective purchase, as well as the biggest collective sale of a mixed use property for The Criterion EC.
As reported by The Business Times, this freehold building’s purchase price was $380 million, a figure that equates to $2,430 per square foot above its existing gross floor area. This sale price makes it the 2nd biggest collective sale over the past 7 years, after the fully commercial development known as Serangoon Plaza was sold in 2013 for $400 million.
The Criterion EC Building
Sin Capital Group was contacted but was unable to share any further information regarding the plans for redevelopment for this site as yet. However, they did share that they did not intend to change the site’s use and may opt to keep its existing structure, rather than demolishing it.
The redevelopment of this site into a mixed use commercial and residential project is being supported by the planning authority. At least 60% of the area has been earmarked for serviced or residential flats. From a zoning point of view, serviced flats fall under the category of residential such as The Criterion EC.
Sin Capital is a group that focuses on private investments and mainly invests in prime real estate in the commercial sector both in and outside of Singapore.
The Thong Sia Building was built in 1981. It has an area of land that is close to 21,602 square feet and currently hosts 7 levels of commercial areas, as well as a residential tower of 19 levels with 37 flats. The gross floor area of the site is 156,300 square feet, which equates to around 7.23 gross plot ratio.
More looking at Yishun ECs
As pointed out by one representative (who represents the owners) of the marketing agent, normally, sales of en bloc properties tend to occur when there is an up trend in the market. At this time, the market is not experiencing an up trend, especially in the residential market. However, The Criterion EC prices and attractive assets, such as the Thong Sia Building, would still draw in takers.
Before the sale can be completed it will be subject to the approval of the Strata Titles Board, amongst other things.
It was on May 20th that this most recent tender exercise came to a close. The deal itself was completed following the 10 week period for a private treaty. Before this was a January tender exercise that drew in a few bids, which were well under the $400 million sale price that the owners were hoping to achieve.
The Criterion ECs
Prior to the sale the residential flats were owned by individual The Criterion EC owners, while Buxani Capital Management Group partnership owned the commercial space.
While the minimum reserved price of $400 million, which was stipulated by the majority of the owners of the Thong Sia Building, the $380 million sale is believed, by some people in the market, to already be quite a high figure given the declining market.