Wednesday, May 26, 2010

Chow House among 9 properties under liquidation sale

Nine properties belonging to three companies that are under liquidation have been put up for sale by public tender.

They were made available after the High Court of Singapore ordered their owning solvent family companies – Associated Development, Chow Cho Poon and Lee Tung Company – to wind up and liquidate in 2007.

The liquidator, Mr Tam Chee Chong of Deloitte & Touche LLP, has appointed property consultancy firm DTZ to market the properties.

The sites mostly comprise adjoining shophouses, some with 999-year leases. They range from residential, commercial and mixed-used developments in areas including Lavender Street, Lorong Telok and Upper Serangoon Road.

DTZ said it expects a good uptake in the tenders, based on interest among potential buyers during the pre-launch.

Mr Shaun Poh, senior director for Investment Advisory Service at DTZ, said “the jewel in the portfolio is Chow House along Robinson Road”.

As the site is zoned for commercial use and has a plot ratio of about 11.2, it has a potential commercial gross floor area of 101,749 sq ft on its current site area of 9,084 sq ft.

DTZ said target bidders for the Chow House are property developers, while investors will likely bid for the shophouses. Current valuation of the properties was not available at press time.

Mr Colin Tan, head of research and consultancy at Chesterton Suntec International, said that given the market’s current liquidity, “there are a lot more investor buyers these days than sellers”.

Ngee Ann Polytechnic real estate lecturer Nicholas Mak agreed that there is ample demand and interest for the shophouses, especially those that are currently tenanted as they will give investors good returns.

As part of the liquidation process, the assets of the companies will be realised and distributed among the shareholders.

The tender for the sites will be closed in succession between July 7 and 15.

Source: Today, 26 May 2010

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