Guocoland and Hong Leong Investment Holdings have outbid competitors in a joint venture to win a bid to buy the Pacific Mansion condominium development in River Valley for S$980 million ($743 million), making it the second-largest en bloc transaction in over a decade.
The winning bid represents a 4.5% premium to the development’s reserve price which was set at S$938 million.
The 290-unit freehold comprises 288 apartments and two commercial units.
Owners of the shop units are expected to cash out S$2.2 million to S$4.5 million monthly, while apartment owners are to receive gross payouts of S$3.26 million to S$3.48 million.
The deal was brokered by marketing agent CBRE, and is its third successful sale in 2018, following the Cairnhill Mansions and Riviera Point deals in February 2018.
Mainboard-listed GuocoLand has a 40% stake in the bid, while Hong Leong Investment Holdings’ Intrepid Investments and Hong Realty hold the remaining 40% and 20% stakes.
The development is on a freehold residential site with a land area of about 128,352 sq ft.
According to the Urban Redevelopment Authority’s (URA’s) 2014 Master Plan, the site has a plot ratio of 2.8 and height control of 36 storeys.
CBRE said that the verified existing gross floor area (GFA) is approximately 493,222 sq ft, which works out to be S$1,987 per sq ft, per plot ratio.
Including a 10% bonus balcony GFA, the maximum allowable GFA is 542,544 sq ft.