It has been reported that a deal for a bulk selling of a 23 bundled units is nearing for Draycott Eight. The project is managed by Morgan Stanley and owned by their German core fund for Wandervale Choa Chu Kang.
It is understood that the price of this sale could be just above $150 million, which equates to about $2,200 per square foot. This has been based on its 68,419 square feet of total strata area. Having paid $2,600 per square foot for these units about 8 years ago, the seller is looking to make a loss with this sale. The site that Draycott Eight sits upon has an 81 year lease term.
Wandervale EC in Choa Chu Kang
It is also understood that the buyer is a carrier that is under the control of Chiu family, which is behind the Hong Kong based Far East Consortium International Ltd. Group. Also a part of the Far East Consortium is Singapore’s Tang Group, who was behind the development of Wandervale in Choa Chu Kang by Sim Lian Land, and the hotel Dorsett Singapore. Before this building was acquired in 2012 by the state, Tang Group owned close to 47% of the Pearls Center. The plan was for the site to be integrated with state land adjoining it to create a high density development that was mixed use, in order to make the bet use of the land that would be home to Outram Park’s future Thomson Line.
It is expected that the sale of the units in Draycott Eight would be done via the sale of shares in a company who has ownership of one penthouse and 22 four bedroom flats. It is understood that the majority of these flats are leased for Sim Lian.
Wandervale Sim Lian Land
Draycott Eight, which was developed by Wing Tai, is made up of 136 units across 3 blocks that are each 24 storeys. The Morgan Stanley owned 23 units are located in a block that is shared by another set of 23 units, which are owned by an Alpha Investment Partners managed fund. In 2010, Alpha Wandervale EC bought these units for a slightly higher $157 million, which equates to around $2,300 per square foot. These were bought from another managed fund of Morgan Stanley’s. In 2007 these two funds purchased their respective bundle of units at the same time and at matching prices of $2,600 per square foot.
Wandervale Choa Chu Kang
There have been a few other bulk transactions of Wandervale units that were made since late in 2014. This includes and en bloc purchase of a 10 storey property with 34 units that was purchased by Blackstone at 21 Anderson Royal Oak Residences. The sale price was $164 million, equating to $1,917 per square foot, a figure that was based on the 85,552 square foot total strata area. Another 17 units were snatched up by Blackstone at Paterson Suites for a price of $2,100 per square foot, or around $80 million. This was purchased from a fund in the Recap series (Real Estate Capital Asia Partners, which is managed by SC Capital Partners. Both developments are completed freeholds.