Property / Hock Lian Seng / TA Corp / King Wan

Property / Hock Lian Seng / TA Corp / King Wan: seems like another group of Singapore developers has emerged. A consortium comprising Hock Lian Seng, TA Corp, King Wan and Far East Distillers announced that they have been awarded the tender for a 99 yr leasehold private residential site at Dairy Farm Road for $244.3m. A special purpose co, BTG has been set up to undertake devt of this site. Ownership is split as follows -- Hock Lian Seng 50%, TA Corp 22.5%, King Wan 17.5%, Far East Distilliers 10%. The 189k sf land parcel located at Dairy Farm Road has a plot ratio of ~2.1. Based on the max gfa of ~397k sf, the purchase price works out to ~$616 psf ppr. The site has potential to be developed into ~400 units. A DWG consultant estimated breakeven cost at btwn $1050 – 1100 psf, and selling price at btwn $1250-1300 psf. Other prominent property developer consortiums in Spore include the Fragrance / Aspial team up, as well as KSH / Heeton team up. These counters have all recently made 52 wk highs, an indication of positive share price momentum.