Looks like it’s a fourth time unlucky for Pearl Bank owners.
EdgeProp reported that public tender for Pearl Bank Apartments closed on 19th December and the collective sale committee had instructed marketing agent – Colliers International to enter into private treaty negotiations with interested parties. Owners were asking for S$728 mil, translating to around S$S$1,505 psf ppr after adding in a lease upgrading premium of S$195 mil.
According to the article, there were ‘keen interest’ from developers, but there was no mention of whether any offers had been received.
Some of the concerns developers raised include the requirement for pre-application feasibility study (PAFS) and whether there is a need to conserve the development in future.
The pre-application feasibility study might be a valid concern but it is unlikely to be the deal-breaker as we have seen buyers for other collective sale sites after the implementation of the PAFS.
And regarding the other concern relating to conservation, this is not something new. URA had publicly stated its position in an official release, saying that any conservation of the property will depend on the council of the management corporation’s interest in having the property conserved and it requires the support from individual owners. Wouldn’t the management council be in a good position to answer any question from developers relating to conservation?
As mentioned in SPK’s earlier blog post, SPK already highlighted that the high asking price of the owners and the large investment quantum are major hurdles for a collective sale to happen at Pearl Bank and risk-reward is not optimal for the developer.
It might not be surprising if the ‘concerns raised by developers’ are attempts to persuade the owners to reduce their asking price for a developer to bite. 10 more weeks to conclude a private treaty. Let’s wait and see!