Tulip Garden at Farrer Road has been re-launched on the collective sale market, after it failed to draw buyers during its last attempt at an en bloc sale in January.
Credo Real Estate, the sole marketing agent for the property, is seeking a new mandate from owners to reduce the asking price to S$600 million from the previous S$650 million.
The new indicative price for the property will lower the effective land cost to around S$1,118 psf ppr, assuming that a successful buyer chooses to maximise the potential 10 percent space for balconies, in addition to the $23 million development charge (DC).
According to a Business Times report, the property was re-launched for collective sale after the collective sale committee (CSC) convened an extraordinary general meeting in May to ask owners to vote on whether to maintain or reduce the minimum asking price.
Most of the owners at the meeting agreed to obtain a written mandate from at least 80 percent of all owners to lower the asking price. As such, the CSC decided to re-launch the property for sale during the process.
“At the close of the new tender on July 19, if the best bid is supported by an independent valuer’s advice and falls between S$600 million and S$650 million, the CSC would be in a position to accept – if by that time, the process of lowering the reserve price is complete,” said Karamjit Singh, Managing Director at Credo.
“If the best bid is higher than S$650 million, then the CSC would not need to wait for the new mandate to be completed.”
The 164-unit property is located at Farrer Road in the prime district 10 area. It has a total gross floor area (GFA) of 557,400 sq ft, which includes the additional 10 percent balcony space.
Credo said the successful buyer can redevelop the property into an apartment complex with 400 units averaging 1,325 sq ft, depending on configuration and layout.
The tender for the site will close on 19 July 2011.
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