Tender for Laguna Park en bloc sale closes unsuccessfully

The tender for the Laguna Park en bloc sale has closed unsuccessfully.

Credo Real Estate said there were two bids for the 528-unit development at Marina Parade at the close of the tender on Tuesday.

A local company whose shareholders are based in Indonesia had offered a price of S$1.7 billion, well above the owners’ Reserve Price of S$1.2 billion.

But Credo said by Thursday evening, the firm decided to withdraw its offer, citing difficulties in their bankers’ ability to process the funds and remit them to Singapore.

The second bid was from a prominent local developer who expressed interest to pursue negotiations with the majority owners.

MediaCorp understands the local developer will settle on a bid price after negotiations with the owners.

Credo said the majority owners have about a month to enter into any private treaty deal before the collective sale agreement expires in December.

Executive director of property consultancy DTZ, Ong Choon Fah, said she is not too surprised by the announcement.

“With the government land sales and the confirmed list restarting next year, and we still have land parcels in the reserved list, there will be an alternative source of land for the developers,” Ong said.

“For example, recently the site at Serangoon Ave 3 which saw 15 developers bidding for it… at prices that had surpassed market expectations,” she added.

Source : Channel NewsAsia – 16 Oct 2009

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