This article was originally published on 3 July 2021 at 17:36 SGT; it has since been updated with more details.
Owners at the SimsVille condominium voted Saturday to appoint a committee to begin the process of selling the property in an en bloc deal, Shenton Wire has learned from one unit owner, confirming a previous article.
An en bloc sale is a collective sale of multiple units of property; in Singapore, when a development is sold en bloc, the buyer usually plans to demolish the existing property and re-develop. The owners are typically paid a sizeable premium in an en bloc sale, but a super majority of at least 80 percent must agree to the sale and later to the purchase price.
Around 90 percent of those attending the virtual EOGM, or extraordinary general meeting, held Saturday voted in favor of setting up the committee, but that represented only about 33 percent of the total voting shares, the source told Shenton Wire. The process of finding a buyer could take two years.
SimsVille has 522 units across four towers as well as facilities including pools, tennis courts and other amenities. The units have been priced at around S$1,021 to S$1,228 per square foot in recent transactions, or at around S$1.07 million to S$1.8 million, according to data from property website 99.co. That suggests a deal price could range toward S$1 billion.
One unit owner has previously cited to Shenton Wire issues with the use of land at the site, which could make it more valuable in a redevelopment, such as the current towers being spaced widely apart and a long strip of land used as visitors’ car park. The buildings have underground parking garages.
The residential property, located in Singapore’s Geylang neighborhood, was completed in 1998. It’s uncommon for properties less than 30 years old to successfully complete an en bloc deal in Singapore. SimsVille is a 99-year leasehold property.