{"id":3328,"date":"2024-05-29T19:11:09","date_gmt":"2024-05-29T11:11:09","guid":{"rendered":"https:\/\/pinegroveresidence.sg\/navagrove\/?p=3328"},"modified":"2024-05-29T19:11:09","modified_gmt":"2024-05-29T11:11:09","slug":"cdl-acquires-delfi-orchard-in-s439-million-en-bloc-deal","status":"publish","type":"post","link":"https:\/\/pinegroveresidence.sg\/navagrove\/cdl-acquires-delfi-orchard-in-s439-million-en-bloc-deal\/","title":{"rendered":"CDL Acquires Delfi Orchard in S$439 Million En Bloc Deal"},"content":{"rendered":"

City Developments Ltd (CDL<\/a>) has completed the acquisition of Delfi Orchard<\/a>, a 40-year-old strata-titled building, for S$439 million. This price is marginally above the guide price of S$438 million set during its mid-April collective sale launch.<\/p>\n

The purchase price translates to a land rate of S$3,346 per square foot per plot ratio (psf ppr), according to Savills Singapore, which facilitated the sale. This figure includes a land betterment charge and is based on the site’s existing gross floor area (GFA) of 131,186 square feet.<\/p>\n

CDL<\/a> group CEO Sherman Kwek expressed his enthusiasm for acquiring this “strategically important asset.” He noted that owning 84 percent of the units prior to the acquisition positions CDL<\/a> to maximize the potential of this prime freehold property. Kwek also highlighted the opportunity to participate in the rejuvenation efforts of the Orchard Road precinct, aligning with several planned redevelopments in the area.<\/p>\n

CDL<\/a> is considering leveraging the government’s Strategic Development Incentive (SDI) Scheme, which encourages the redevelopment of older buildings in key areas like Orchard Road. Under the SDI Scheme, the GFA of a development can be increased by up to 20 percent if the building owner collaborates with neighboring properties for a joint redevelopment.<\/p>\n

CDL’s portfolio in the vicinity already includes several properties, such as the Orchard Hotel, Claymore Connect, and Palais Renaissance. Additionally, CDL<\/a> holds a stake in the St Regis Singapore, The Singapore Edition hotel, and the Boulevard 88 condominium along Cuscaden Road.<\/p>\n

Delfi Orchard<\/a>, situated on a 20,264 sq ft site zoned for commercial use with a height control of up to 20 storeys, comprises 150 strata-titled units (127 shops and 23 apartments), of which CDL<\/a> owns 126. The 11-storey development’s residential unit owners are expected to receive between S$2.2 million and S$4.6 million each, while commercial unit owners could receive between S$984,000 and S$24 million per unit.<\/p>\n

CDL<\/a> originally purchased 118 units at Delfi Orchard<\/a> in 1991 for S$95 million from Japanese developer Yamasin and later acquired Palais Renaissance from the same developer in 1993 for S$115 million. In 2022, CDL<\/a> completed a S$7 million asset enhancement for Palais Renaissance.<\/p>\n

This acquisition marks the first successful en bloc deal in the Orchard Road area since December 2022, when Ming Arcade, a freehold commercial complex, was sold for S$172 million at a land rate of S$3,125 psf ppr. Recently, Far East Shopping Centre owners received an offer below S$880 million after a previous S$910 million deal fell through, prompting a supplementary agreement to lower the collective sale price.<\/p>\n

Jeremy Lake, managing director of investment sales and capital markets at Savills Singapore, commented on the ongoing interest from developers in prime development opportunities and the Urban Redevelopment Authority\u2019s (URA<\/a>) plans to rejuvenate Orchard Road.<\/p>\n

Additionally, Ong Beng Seng\u2019s Hotel Properties\u2019 buildings along Orchard Road, including voco Orchard Singapore hotel, Forum The Shopping Mall, and HPL House, were bundled in a redevelopment proposal approved by the URA<\/a> in August last year.<\/p>\n

The Business Times<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

City Developments Ltd (CDL) has completed the acquisition of Delfi Orchard, a 40-year-old strata-titled building, for S$439 million. This price is marginally above the guide price of S$438 million set during its mid-April collective sale launch. The purchase price translates to a land rate of S$3,346 per square foot per plot ratio (psf ppr), according […]<\/p>\n","protected":false},"author":1,"featured_media":3290,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[],"class_list":["post-3328","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general-property-news"],"_links":{"self":[{"href":"https:\/\/pinegroveresidence.sg\/navagrove\/wp-json\/wp\/v2\/posts\/3328","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pinegroveresidence.sg\/navagrove\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pinegroveresidence.sg\/navagrove\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pinegroveresidence.sg\/navagrove\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pinegroveresidence.sg\/navagrove\/wp-json\/wp\/v2\/comments?post=3328"}],"version-history":[{"count":1,"href":"https:\/\/pinegroveresidence.sg\/navagrove\/wp-json\/wp\/v2\/posts\/3328\/revisions"}],"predecessor-version":[{"id":3329,"href":"https:\/\/pinegroveresidence.sg\/navagrove\/wp-json\/wp\/v2\/posts\/3328\/revisions\/3329"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pinegroveresidence.sg\/navagrove\/wp-json\/wp\/v2\/media\/3290"}],"wp:attachment":[{"href":"https:\/\/pinegroveresidence.sg\/navagrove\/wp-json\/wp\/v2\/media?parent=3328"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pinegroveresidence.sg\/navagrove\/wp-json\/wp\/v2\/categories?post=3328"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pinegroveresidence.sg\/navagrove\/wp-json\/wp\/v2\/tags?post=3328"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}