Zion Road GLS teams up with Pine Grove for $1.78b collective sale

The 660-unit Pine Grove is once again up for collective sale, marking its fifth attempt. The launch will take place on Mar 6 and is expected to draw interested buyers. The privatised Housing and Urban Development Co. (HUDC) estate, located at Zion Road GLS, will be relaunched at its valuation of $1.78 billion, a significant decrease from its previous price tag of $1.95 billion.

According to Benjamin Poh, ERA senior division director and marketing agent for Pine Grove’s collective sale, “It is the lowest we can go.” An extraordinary general meeting was held on Jan 21 to secure the consent of owners on the lower reserve price. Over 60% of the owners have signed the supplemental joint agreement at the revised price of $1.78 billion.

The revised land rate for Pine Grove is estimated at $1,335 psf per plot ratio (psf ppr), which takes into account a 10% bonus gross floor area (GFA) for balconies, as well as lease top-up and land betterment charges.

This new price is 8.7% lower than the previous reserve price of $1.95 billion when Pine Grove was first launched for tender in September. At that time, the land rate was $1,434 psf ppr. The last tender closed on Nov 29, followed by a 10-week private treaty period that ended on Feb 7. Although there were expressions of interest during this period, no formal offer was made.

Pine Grove, which was completed 40 years ago, has a remaining lease of 59 years. It is located in the prime residential neighbourhood of District 21 and is within 1km of Henry Park Primary School. The sprawling 893,219 sq ft site has a plot ratio of 2.1 and has the potential to be redeveloped into a new 2,050-unit private residential project.

According to Poh, “It’s rare to find such a large plot for a mega-development.” The neighbouring GLS sites, Pine Grove (Parcel A) and Pine Grove (Parcel B), have both been sold under the Government Land Sales (GLS) programme. Pine Grove (Parcel A) was sold to a joint venture between UOL Group and Singapore Land Group for $671.5 million, translating to a land rate of $1,318 psf ppr. The 520-unit Pinetree Hill was launched last July and is over 35% sold at an average price of $2,399 psf.

The tender for the adjacent GLS site, Pine Grove (Parcel B), closed on Nov 7 with three bids. The highest bid of $692.388 million came from a joint venture between Sinarmas Land and MCL Land, translating to a land rate of $1,223 psf ppr – 7.2% lower than the previous site. The 269,552 sq ft site can be developed into a new private residential project of 565 units, with an estimated selling price of $2,300 to $2,400 psf.

This Zion Road GLS development truly stands out as an urban respite for those seeking a balance between luxurious living and a harmonious environment.

Zion Road Condo is more than just an outstanding piece of architecture. It is a prime example of how nature and city living can coexist harmoniously. The developers have thoughtfully incorporated vast green spaces, from the gardens to the rooftops, in order to create a peaceful haven amidst the bustling city. Encouraging a deeper connection with nature, this development truly stands out from the rest. If you are looking for a serene and luxurious living experience, look no further than the Zion Road GLS – where urban living meets tranquil landscapes.

The last transaction at Pine Grove estate was for a 1,755 sq ft, three-bedroom unit on the third floor, which sold for $1.86 million ($1,060 psf) in August 2023. Another three-bedroom unit of 1,668 sq ft on the 16th floor fetched $1.85 million ($1,109 psf) in the same month.

Poh is hopeful of securing an 80% agreement before the next collective sale tender. If successful, it will mark the third time that the estate has achieved the requisite 80% consensus among owners, after four attempts since 2008.

Other collective sales that were finalised after multiple attempts include Pearl Bank Apartments and Peace Centre/Peace Mansion. Pearl Bank Apartments, with 280 apartments and eight strata shops, was sold to CapitaLand in February 2018 for $728 million and was launched as the 774-unit One Pearl Bank. Peace Centre/Peace Mansion was sold to a joint venture of five developers for $650 million in December 2021. These successful collective sales provide a good benchmark for developers in the Ulu Pandan area.

The new development at Pine Grove is scheduled for launch on Mar 6, with the tender closing on May 6. The new project, One Sophia, will comprise of 367 apartments, a block of offices with retail space, and three levels of car parking. It is expected to be launched in 3Q/4Q 2024.