Park View Mansions Acquisition: Chip Eng Seng, KSH, and SingHaiyi Join Forces for S$260 Million Redevelopment

Park View Mansions, a 160-unit residential complex located along Yuan Ching Road, has been acquired by a consortium comprising Chip Eng Seng, KSH Holdings, and SingHaiyi Group for S$260 million. The joint venture, formed by these mainboard-listed property groups, aims to redevelop the site into a high-quality residential development featuring up to 440 units.

A Promising Joint Venture for Park View Mansions Redevelopment

The three property giants—CEL Development (Chip Eng Seng’s unit), Sing-Haiyi Pearl, and TK 189 Development (an indirectly owned and associated unit of KSH Holdings)—entered a joint tender to acquire and redevelop Park View Mansions. The memorandum of understanding signed by the parties allocates participation interest in the acquisition as follows: 40% to CEL, 30% to Sing-Haiyi Pearl, and 30% to TK 189.

Funding the Acquisition

The joint tenderers have paid a tender fee of S$100,000, which will later form part of the property’s purchase price. Chip Eng Seng and KSH Holdings will fund the acquisition through internal cash sources, with KSH Holdings also resorting to external borrowings for its contributions. As a result, the joint venture is not expected to have a material impact on net tangible assets and earnings per share for the current financial year.

Park View Mansions: Strategic Location and Redevelopment Potential

The 17,834.8 square meter land area of Park View Mansions boasts a permissible plot ratio of 2.1, resulting in a maximum permissible gross floor area of 37,453.08 square meters. With approximately 53 years left on its 99-year leasehold—commencing October 1, 1976—the property presents a compelling redevelopment opportunity for the consortium.

Previous En Bloc Attempts and Land Rate

Park View Mansions had previously been launched for en bloc twice before its successful collective sale at an asking price of S$260 million. The land rate for the acquisition is S$1,023 per square foot per plot ratio, as marketing agent ERA Realty reported. This rate includes the estimated differential premium payable to maximize the site’s development plot ratio of 2.1 and top up the existing lease to 99 years, subject to JTC and the Urban Redevelopment Authority’s planning approval.

A History of Successful Collaborations

The consortium’s acquisition of Park View Mansions is not their first joint venture. Previously, the trio partnered on a joint S$650 million bid for the combined development of the Peace Centre and Peace Mansion, marking the largest collective sale in 2021.

With the expertise and resources of Chip Eng Seng, KSH Holdings, and SingHaiyi Group, the Park View Mansions redevelopment project promises to deliver an exceptional residential offering. Further announcements regarding the acquisition and redevelopment plans will be made as the project progresses. SingHaiyi Group is the developer of the upcoming Grand Dunman luxury condominium located a Dunman Road.