Yes, Vista Park owners have hit their jackpot this time round.
Enbloc-King Oxley Group announced last night that owners of Vista Park had accepted its tender offer of S$418 mil to acquire all the units for redevelopment. Its tender price is almost 20% above the reserve price of the owners. After factoring in the S$72 mil lease upgrade premium, the offer price from Oxley translates to a rate of S$1,096 psf per plot ratio and approximately S$1,056 psf per plot ratio after factoring in the bonus balcony GFA.
In the earlier blog post titled “Are Vista Park owners hitting their jackpot this time round?”, SPK had pointed out the challenges in the redevelopment and positioning of this site. And that was probably why the site was not as hotly contested as other sites, with just 5 bids and a few expression of interest.
Nonetheless, the final outcome is a good one for all Vista Park owners and within SPK’s thumbs up expectation for the collective sale at Vista Park to succeed.
Pricing in a 9% increment in future prices
Oxley’s tender price of S$418 mil translates to an estimated breakeven price of around S$1,500 psf and SPK expects the launch price of the new project at Vista Park site to be around S$1,800 psf on average. In comparison to the S$1,650 psf that nearby new launches were fetching in today’s market, Oxley could be pricing in a 9% future price increase in its tender offer price.
Jackpot day for Vista Park owners
Vista Park owners are expected to receive 20% that what they had asked for. Each owner could now take back $1.39 mil to $4.2 mil.
Congratulations to the 209 owners at Vista Park!