Good news for property owners in Singapore – the collective sale of Flynn Park has gone through, and it was sold en bloc for a whopping $371 million! This is great news for those looking to invest in property, as the sale of this 99-year leasehold residential site will lead to more affordable housing options. Read on to find out more about this successful collective sale.
Introduction to the En Bloc Sale of Flynn Park
Hoi Hup Realty and Sunway Developments recently joined forces to purchase the en-bloc sale of Flynn Park, a condominium development in Singapore. The acquisition, which was won through a competitive bid at a price of S$371mil, is the biggest successful en bloc sale in 2021 to date.
Located at 18 – 22 Yew Siang, Flynn Park is a freehold residential site that was previously owned by Thiam Siew Avenue. This en bloc sale marks the first significant transaction in the local property market since August when new private home sales dropped 23.6%.
The successful bid for Flynn Park is indicative of investors’ confidence in the Singaporean property market despite the current economic climate. Hoi Hup and Sunway Developments are expected to take up the redevelopment of the site, which could potentially bring more private homes to the city-state’s already vibrant housing landscape.
This en bloc sale of Flynn Park may also have implications for other developers as well as investors in Singapore’s real estate sector. Moving forward, this could potentially lead to more competitive bids for similar sites across the country, leading to increased activity and investment opportunities within Singapore’s real estate sector.
Overview of the Sale Process
The en bloc sale of Flynn Park was a complex process that required the cooperation of all involved parties. The sale was facilitated by Savills, a real estate broker, who managed to convince the 72-unit owners to come together to put their properties on the market. The owners had to agree on a collective reserve price for the site and also come to an agreement about how the proceeds from the sale would be shared.
The en bloc process began in October 2020, when Hoi Hup and Sunway Joint Venture submitted a bid of $371 million for the site. This was followed by negotiations between Hoi Hup and Sunway Joint Venture and Savills over the details of the deal, including the timeline and payment plan. In late June 2021, both parties reached an agreement and the sale was finalized at a price of $1,318 ppr.
The deal marks one of Singapore’s largest en bloc sales in 2021 and is expected to have far-reaching implications for both buyers and sellers. For Hoi Hup and Sunway Joint Venture, it signals a major investment in Pasir Panjang, while for sellers it provides an opportunity to reinvest their profits into other projects or ventures.
Details of the Sale
Flynn Park, located at 18-22 Yew Siang Road, has been sold off through an en-bloc sale for a staggering $371 million. The successful sale was made by a joint venture between Hoi Hup Realty and Sunway Development and has been the biggest successful en bloc sale in 2021 thus far.
The sale process of Flynn Park began in March 2019 when its owners initiated the collective sale process. After several months of negotiations and deliberations, the collective sale agreement was eventually signed by 95.2 percent of the owners in October 2020. Following this, the sale was approved by the Strata Titles Board and later confirmed by the High Court at a hearing held in December 2020.
The successful $371 million deal for Flynn Park marks the highest en bloc price achieved for 2021 so far. This price is also 8 percent higher than the reserve price of $343 million set for the property. The plot of land is set to yield 400 residential units after development, which could potentially explain why it attracted such a high bid from both Hoi Hup Realty and Sunway Development.
It is also worth noting that this plot of land is located within walking distance to the upcoming Bright Hill MRT Station on the Thomson-East Coast Line (TEL). This could also have been a factor that contributed to its high selling price, as developments near public transport tend to attract higher bids.
The collective sale process of Flynn Park is certainly an example of how lucrative en bloc sales can be for property owners. It has not only allowed them to realise greater returns on their investments but has also opened up new opportunities for Hoi Hup Realty and Sunway Development to develop within a highly sought-after area.
Conclusion
The en-bloc sale of Flynn Park has concluded, with Hoi Hup and Sunway purchasing the 72-unit condominium for $371mil. This marks a significant milestone in the real estate industry in Singapore, as it is one of the most expensive en-bloc sales to date.
The sale process of Flynn Park was highly competitive, with numerous bidders vying for the property. Ultimately, Hoi Hup and Sunway emerged victorious with their competitive bid of S$371mil (RM1.15bil). The price translates to a land rate of $1,355 psf per plot ratio which is significantly higher than the market rate.
The success of this en-bloc sale highlights the potential of collective sales in Singapore and will likely inspire other private developments to pursue similar initiatives. Additionally, it also exemplifies the growing demand for residential properties in Singapore as buyers are willing to pay a premium for well-located properties with potential redevelopment opportunities.
With this en-bloc sale concluded, Hoi Hup and Sunway are now looking ahead towards redeveloping Flynn Park into Terra Hill. As part of their redevelopment plans, they will be constructing additional residential units as well as commercial spaces that will serve as amenities to existing and future residents.
Overall, the successful en-bloc sale of Flynn Park proves that collective sales are still a viable option for private developments in Singapore. While the process can be lengthy and complex, it can also be highly rewarding if successful.