$175 million collective sale relaunch of Charming Garden

A collective sale tender has been launched for Charming Garden, a 999-year leasehold condominium at 138 and 140 King’s Road. According to a press release from the marketing agent Colliers, the owners are holding out for a guide price of $175 million.

The condo’s first collective sale attempt was in December 2022 at the same guide price of $175 million but it did not end with any successful bids. Consequently, the owners decided to relaunch the tender in March of the same year.

Charming Garden stands on a high 84,357 sq ft plot in Farrer Road. The price for the development works out to be $2,058 per sq ft per plot ratio (ppr) or $2,074 psf on land area. The owners are deliberating a reduction of the reserve price, according to Colliers.

Tang Wei Leng, managing director and head of capital markets and investment services at Colliers Singapore, stated that an Extraordinary General Meeting was called “following the second tender close” and that the resolution to reduce the reserve price from $175 million was passed.

“We are getting the owners to sign the Supplemental Collective Sale Agreement for a lower reserve price,” she added.

According to EdgeProp’s Landlens analytics tool, if the property is redeveloped, it could carry a breakeven price of approximately $3,575 psf.

The site has been designated for two-storey semi-detached housing under the 2019 Master Plan, however, there is a possibility of returning the area to an approved flats building, given the appropriate conditions.

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Tang believes that developers might be interested because of the flexibility to either develop landed housing or apartments. She further added that landed property prices have seen a 5.9% increase in 1Q2023 due to strong demand for these kinds of properties. Additionally, a developer who intends to redevelop the site into a landed housing project could construct 112,710 sq ft of landed built-up area without incurring any land betterment charges.

The public tender for the collective sale of Charming Garden will close on July 10.

The prospect of such an attractive bid at an already competitive guide price makes it an exciting opportunity for buyers with the right vision and ambition. With the flexibility to develop landed or apartment housing, the potential of the property is waiting to be unlocked.

Charming Garden, a 999-year leasehold condominium at 138 and 140 King’s Road, is up for collective sale. According to the marketing agent Colliers, the owners have set a guide price of $175 million for the property.

The condominium first attempted a collective sale in December 2022 with the same price guide but the tender was unsuccessful. As a result, the owners decided to relaunch the tender in March of the same year.

The Charming Garden development is situated on an elevated 84,357 sq ft plot in the Farrer Road neighbourhood. The guide price translates to $2,058 per sq ft per plot ratio (ppr), or $2,074 psf on land area. At the time of the relaunch, the owners were considering a reduced reserve price.

Tang Wei Leng, managing director and head of capital markets and investment services at Colliers Singapore, said that an Extraordinary General Meeting was called “following the second tender close” and that the resolution to reduce the reserve price from $175 million was passed.

“We are getting the owners to sign the Supplemental Collective Sale Agreement for a lower reserve price,” she added.

Based on data from EdgeProp’s Landlens analytics tool, a redevelopment of Charming Garden could see a breakeven price of approximately $3,575 psf.

The location has been marked out for two-storey semi-detached housing under the 2019 Master Plan. However, the Urban Redevelopment Authority has advised that the site may also be restored to the approved flats building as long as certain conditions are fulfilled.

According to Tang, the flexibility to building either landed housing or apartments is likely to be appealing to developers. She went on to point out that land prices are rising, with values having increased 5.9% in the first quarter of 2023, likely to result in further interest.

For a developer planning to build a landed housing project, 112,710 sq ft of landed built-up area can be constructed without any land betterment charges.

The collective sale tender for Charming Garden will close on July 10. With such an attractive bid at a competitive guide price, it is sure to appeal to buyers with the right vision. The potential of the property is waiting to be unlocked with the flexibility to develop either apartment or landed housing.

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