Homegrown developer KOP Limited, via its indirect wholly-owned subsidiary Dalvey Breeze, has agreed to acquire the freehold Villa D’Este condominium for $93 million.
Located at Dalvey Road in prime District 10, the 12-unit development sits on a 55,000 sq ft site, which KOP intends to redevelop into a high-end condominium.
“The key attractiveness of the site is that it enjoys the prestigious GCB address on Dalvey Road, which is extremely sought after by locals and foreigners. Yet it is conveniently located within 350m from the upcoming Stevens interchange (Thomson East-Coast Line) and Stevens MRT station,” said Galven Tan, executive director, CBRE Capital Markets Singapore.
He noted that the owners can expect gross proceeds of between $7.75 million and $8.07 million from the successful sale.
In an SGX filing, KOP revealed that the acquisition – which is not expected to materially affect its net tangible assets and earnings per share for the financial year ending 31 March 2019 – will be funded by a combination of internal resources and external borrowings.
Villa D’Este was first put up for en bloc sale in 2010 at $115 million, but had no takers partly due to its hefty price tag and weak market confidence given that the government had started introducing property cooling measures, reported the Business Times.
It was launched for tender again in July last year with a $96 million asking price, and in January this year, with the tender closing in early March. As such, the sale to KOP was made via private treaty negotiations within the 10-week period following the latest tender exercise.
Source: Property Guru