Friday, May 21, 2010

MGPA offloads 162 Cascadia units to Alpha fund

Private equity property group MGPA is understood to have sold its stake in the 162 apartments it bought at The Cascadia in 2007 to a fund managed by Keppel Land's Alpha Investment Partners.

BT understands the latest sale priced the freehold apartments on Bukit Timah Road at about $1,280- 1,300 per square foot on average. This is about 10-12 per cent below the $1,450 psf average price or $280.36 million that MGPA paid for the units more than three years ago.

The latest pricing of $1,280-1,300 psf reflects a deal size of $247.5-251.4 million. However, the transaction does not involve a direct sale; instead, the Alpha fund is believed to have bought the companies that MGPA used to make the acquisition in 2007.

BT understands that under a deferred payment scheme offered by the project's developer Allgreen Properties, MGPA has so far paid 30 per cent of its 2007 acquisition price.

The rest of the payments will begin to kick in when the project receives its TOP (temporary occupation permit) towards year-end.

Allgreen, the Singapore- listed property vehicle of Malaysian tycoon Robert Kuok, did another bulk sale in late 2007, involving about 20 units, to a Spanish fund for about $1,600 psf.

According to latest government data, at end- April, 349 units were still available for sale in the 536-unit condo. Allgreen began a preview of the project this week.

The development, which will have 13 blocks, comprises one, two, three and four-bedroom apartments as well as penthouses.

Unit sizes range from 570 sq ft for a one-bedder to 1,506 sq ft for a four-bedroom apartment with a study room. Penthouses are 3,700-5,200 sq ft. Knight Frank is marketing the 10-storey project, which is beside Tan Chong Motor Centre.

MGPA also owns 19 apartments at 8 Napier, which it is also said to be looking to sell.

In addition, it owns 8 Shenton Way and is developing the Asia Square project at Marina View comprising offices, shops and a hotel.

MGPA, headquartered in Bermuda and with offices in Europe and Asia, manages over US$10 billion in assets in these two regions.

Alpha Investment Partners has been stepping up its investments in Singapore. One of its funds has taken a majority stake in the consortium which bought Katong Mall late last year for $247.6 million. Another of its funds controls at least 90 per cent of a company that owns The Spazio on Cecil Street.

Source: Business Times, 21 May 2010

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