Tulip Garden collective sale fizzles

Tulip Garden was set to be the third-largest en bloc sale in Singapore, with a reserve price of S$650 million.

However, after the 31 March deadline, no developer has signed for the 164-unit Farrer Road condominium.

Launched in December, the tender for the 316,708 sq ft property closed on 20 January. Three parties were believed to have expressed interest in the tender but no bids were submitted.

Under the rules on collective sales, private treaties have 10 weeks ito be worked out after the tender closes. The end of the period for Tulip Garden, however, was on 31 March 2011.

Mr. Karamjit Singh, Managing Director of Credo Real Estate, the marketing agent for the property, has confirmed that while the company was in discussions with developers, there was no private treaty inked within the 10-week period.

However, the company is in negotiations to launch a second tender.

While the initial tender ended after the 10 weeks, owners may launch a fresh tender within one year of obtaining the 80 percent consensus needed to mount a sale attempt.

The re-launch must have the same reserve price, as changing the price tag for the property would mean having to achieve the 80 percent support all over again.

Mr. Tony Lum, who has been living at Tulip Garden for over 20 years, believe that even if there were no transactions made, he is confident that the freehold site can still be sold, especially with the upcoming Farrer Road MRT station.

“Now if you try to get a unit of the same size, it’s going to be so expensive. I might be getting about S$3 million in payout but it won’t be as good as my unit. I’m not in a hurry to sell,” he added.

Tulip Garden was initially sold en bloc in July 2007 for S$516 million but the deal fell through when the buyers, a group led by Bravo Building Construction, backed out in 2008, citing difficulty in raising funds for the acquisition.

Source : PropertyGuru – 4 Apr 2011

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