Blackstone Sells Singapore Residential Project to Far East Consortium For $147M

Hong Kong-listed developer Far East Consortium (FEC) is making another move to bolster its portfolio in Singapore, buying a freehold residential project near the Orchard Road shopping district from a seller believed to be US private equity giant Blackstone for S$196 million ($147 million). The deal comes three weeks after a cross-border consortium including FEC snapped up a residential parcel in the same area for a record-breaking S$410 million.

FEC announced on Wednesday that it has acquired the 21 Anderson Royal Oak Residence along Stevens Road in the city’s prized District 10 area. The Hong Kong developer is paying S$93 million for the company that holds the project just north of Singapore’s Shangri-La Hotel and all 34 of its luxury units, while also taking on the project’s loans of S$103 million. The total spend of S$196 million equates to a price of S$2,252 per square foot of floor area.

The seller is identified as Amber Investment Holding (Cayman) Limited, which according to advisors involved in the firm’s 2014 acquisition of the property, is an affiliate of Blackstone. The private equity firm reportedly purchased the 2010-vintage residential project from private equity investor Richard Yue’s Arch Capital for S$164 million, or S$1,885 per square foot of floor area. Blackstone is understood to have intended to dispose of the property since 2016.

Upscale 2010 Project May Be Ready for the Wrecking Ball

The property, with a land area of 49,048 square feet (4,557 square metres), currently comprises 34 condominium units with a total gross floor area of 87,000 square feet and is currently under renovation work at the moment, said FEC.

“The Property is located in a prime residential location in Singapore, which we intend to hold for investment before potential redevelopment of the Property to be approved by relevant authorities,” FEC managing director Chris Hoong said in a statement.

The newly acquired property is located in an upscale neighbourhood 650 metres north of the city-state’s prime shopping area Orchard Road. Sitting across from the premier school Raffles Girls’ School, the project boasts a 30-metre long swimming pool, a tennis court and a gym.

“The acquisition is consistent with the company’s regionalisation strategy. In particular, the
property is located in a prime residential location in Singapore and offers great redevelopment
or resale opportunity,” said Chan Ka-pong, Chief Financial Officer for the company in the statement. “The acquisition also allows the group to replenish its development pipeline following the successful launch of Artra in 2017.”

FEC Ramps up Singapore Portfolio

The site on Anderson Road is just a 15-minute walk from the Cuscaden Road residential plot acquired by FEC along with New World Development and Singapore’s SC Global Developments three weeks ago. The cross-border trio placed a record S$410 million bid to win the luxury residential site on near the Orchard Road shopping district.

The record-shattering land bid followed FEC’s purchase of the Hollandia residential site on Holland Road for S$183.38 million via a collective sale in March.

The Hong Kong-listed builder, in partnership with New World Development, is also developing a high-end residential project called Artra Condo at 10 Alexandra View near the Redhill MRT station in Singapore. Set to be completed in 2021, the project sold 65 percent of its released units in late April. FEC holds a 70 percent stake in the joint venture.

Artra is a 400-apartment project with approximately 410,000 square feet of saleable floor area on top of a 20,000 square foot commercial component. It will have amenities including shops, childcare facilities, a 50-metre lap pool, a tennis court, and a sky jacuzzi as well as terraces.