‘One private offer received for Pine Grove’

Source : Today – 10 May 2011

Nearly three weeks after the close of what was marketed as Singapore’s largest en bloc tender, Pine Grove’s marketing agent Jones Lang LaSalle has kept quiet about the outcome.

But MediaCorp understands the development off Ulu Pandan, which has an independent valuation of S$1.25 billion, has received at least one private offer.

Ms Christina Sim, director of Investment at Cushman & Wakefield, said: “A more realistic price would be some 20 to 25 per cent below the S$1.7-billion mark. The agents still have a good 10-week period to negotiate any private treaty sale from the date of the close of the tender.”

According to analysts, S$1.275 billion to S$1.360 billion – well below the original reserve price of S$1.7 billion – would be a realistic price for Pine Grove. But that will translate to smaller gains for residents.

Pine Grove has 660 units of 1,163 sq ft to 1,938 sq ft. Based on a reserve price of S$1.275 billion, residents will receive from S$1.57 million to S$2.06 million depending on the size of their unit.

Analysts said residents of the 27-year-old property should go ahead with a lower offer.

Ms Sim said: “We must remember that Pine Grove is a 99-year leasehold property and, as time goes by, your property keeps depreciating. So right now, it actually makes a lot of economic sense for them to cash out.”

Analysts expect Pine Grove to be turned into a mid- to high-end residential development.

But demand for mid- to high-end projects, which are commonly found in the central regions, remains muted.

According to Urban Redevelopment Authority data, prices of uncompleted homes in the central region grew 0.1 per cent this quarter, slower than the 2.5 per cent for suburban areas.