The deal to buy Thomson View Condo is subject to a lower reserve price
UOL, Singapore Land and CapitaLand have entered into an option to acquire the 99-year leasehold Thomson View Condominium for $810 million in a collective sale.
The deal would be subject to a price 12 per cent lower than the condo owners’ original reserve price of $918 million. The en bloc was relaunched in July at the same price, before owners moved to reduce the price on the sale earlier this month.
Two previous attempts were made in November 2021 and May 2022 when the site was marketed at $950 million. This would be the largest en bloc deal done in Singapore since Chuan Park’s collective sale got the approval in May 2023.
The move to lower the reserve price brings the unit land cost down to $1,178 per square foot per plot ratio, after including land betterment charges to intensify land use and a lease upgrading premium to top up to a fresh 99-year lease.
The proposed acquisition of Thomson View is by a 50:50 joint venture between UOL Group and CapitaLand. UOL and its unit SingLand hold 50 per cent of the joint venture on a 80:20 basis.
Together the three partners have been actively building up land bank for joint projects in the last two years namely for a Holland Drive site and a mixed-use plot in Tampines.
If concluded, the $810 million acquisition of Thomson View will be financed mainly from bank borrowings and internal resources. The deal is expected to be completed by February 2026.
(Source: The Business Times)