1. City Developments Limited (CDL) and CapitaLand Limited (CL) are to join forces to acquire the Parkview Condominium site in West Coast Park for $165 million. CDL and CL, both listed on the SGX, have for the first time come together in a 50:50 joint venture in the local property development scene. This collaboration of the two leading property developers augurs well for the Singapore property market. CL will be using its indirect, wholly owned subsidiary, Leonie Court Pte Ltd, for this joint venture.
2. Says Mr Chia Ngiang Hong, Group General Manager of CDL, “We are excited with this very first collaboration between CDL and CapitaLand in acquiring and developing a residential project. This joint venture reflects our confidence in Singapore’s economy and residential market.”
3. “We are equally delighted with this partnership. We believe this is an opportune time to jointly develop this project,” says Ms Patricia Chia, Deputy CEO, Singapore Operations, CapitaLand Residential Ltd.
4. The two developers intend to redevelop the Parkview site and the total project cost is estimated at approximately $320 million. The Parkview Condominium site at 407,387 sq ft is the largest site to-date by land area to be sold by way of a collective sale. This site has a 956-year leasehold tenure. Under the 1998 URA Master Plan, it is designated for “Residential” use with a maximum plot ratio of 1.6 (ratio of potential maximum gross floor area to land size), and an allowable height restriction of up to 12 storeys. The site is designated for good quality medium-density residential developments.
5. The existing development, Parkview Condominium comprises three 3-storey and six 4-storey low-rise blocks, with a total of 178 apartment units. Unit owners with over 80% of the share values in the condominium have accepted the offer to acquire the site, and submission by these majority owners to the Strata Titles Board for approval of the sale of the entire development is expected shortly.