In an amazing development in the situation the entire Phoenix Heights have been sold as one investment to an associate of OKP Holdings. The delightful properties will make a sound addition to their portfolio and will be a reliable gem for continued returns. This move signals that the market is still very buoyant and despite some of the gloomier predictions, appears to have plenty of legs in it yet.
Phoenix Heights Enbloc by USB Holdings
USB Holdings Pte Ltd won the bidding process with an offer of S$33.1 million allowing them to secure the 99 year lease on the property. According to a public statement made by OKP Holdings the purchase was completed ‘after taking into account the prevailing market conditions’ as well as the ‘prices of surrounding properties’.
The large 3,971.0 sq m property has been zoned for residential use but with demand for housing remaining high the new owners should have no problems putting their investment to work at once. Buying the Phoenix Heights Enbloc may have appeared to some to be a rash move but given the market signals and the company’s shrewd past investments this news could be a signal to others that the property market is far from cooling.
OKP Holdings to Construct Enbloc of Phoenix Heights
Construction of Phoenix Heights was completed around 50 years ago. The property still has 50 years left on its lease but the new owners, OKP Holdings have announced that they plan to apply for a new 99 year lease and there is no reason to think that they will be refused this.
The OKP Group also clarified that they would be using internal funding mechanisms to support their purchase and, where necessary, bank loans would be used to shore up the difference. To date the initial tender deposit of S$180,000 has been paid already and another 10% of the total purchase price is due to be paid within 14 days.
OKP Holdings Share Prices Increase on New Announcements
Anna Tan, the ERA Realty senior division director, was taken aback but very pleased as she said ‘The deal was closed after the new measures so it was quite a surprise’. Anna Tan was referring to the new measures recently introduced in an attempt to cool the property markets. However, as this sale shows, those measures have not succeeded in cooling the markets while OKP saw their own shares rise slightly by 2.27% or around half a Singapore cent.