Pearl Bank owners bank on conservation order

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#1
Pearl Bank owners bank on conservation order
Aim is to raise gross floor area, get lease top-up and higher psf price


PUBLISHED ON APR 23, 2014 1:58 AM
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The 38-year-old Pearl Bank in the Outram area is Singapore's first high-rise apartment block. The estate's three attempts at a collective sale between 2007 and 2011 had no takers due to the high asking price of $1,300 to $1,400 psf, well above the market value of $850 to $900 psf. -- ST PHOTO: MATTHIAS HO

BY RENNIE WHANG
THE owners of Pearl Bank Apartments are seeking a conservation order for their building as part of an ambitious plan to entice a developer to rejuvenate it.

If they succeed, the owners, who have tried three times for a collective sale of the 38-year-old building, would have broken new ground in the private property sector with their strategy.

Under the plan, the management committee will ask the Urban Redevelopment Authority (URA) to increase its gross floor area (GFA), which has been maximised at 55,102 sq m, or a plot ratio of 7.2.

This could allow the owners to build a 27-storey residential block of about 15,000 sq m on the area now occupied by a five-storey carpark. This block will have a rooftop garden, a swimming pool and a bridge to the existing block's 28th-floor common space.

The owners will also ask the Singapore Land Authority (SLA) to extend the 99-year lease.

"Once our gross floor area is increased, we're going to raise capital by selling this extra development quantum to external developers," said Mr Tan Cheng Siong, who designed the original block and has drawn up plans for the new development.

"We can then use this money to pay for the upgrading and lease extension. Our goal is that existing residents will not have to pay extra."

The strategy was devised after the failed bids for a collective sale at the estate, Singapore's first high-rise apartment block.

The three attempts between 2007 and 2011 had no takers due to the high asking price of $1,300 to $1,400 psf, well above the market value of $850 to $900 psf.

But winning a conservation order is no easy task.

A URA spokesman said this is the first time a multi-strata private development has applied for conservation.

A building must have architectural significance and rarity, social and historical significance as well as contribute to the environment if it hopes to win an order.

If the order is won, the owners will work with the URA to restore the original design and facade of the block. With upgrading and a lease extension, the owners hope their units will be worth up to $1,800 psf.

Mr Tan, who also designed Pandan Valley, Singapore's first condominium, said the additional block would enhance the building and surrounding landscape.

Even winning a lease top-up would be a first for a residential project, industry sources said.

Arcadia, an early-generation condominium in Arcadia Road, applied in 2011 but was rejected.

Mr Tan said Pearl Bank stood a better chance: "I think the feeling about Pearl Bank is totally different; the Government feels it is worthy of conservation."

An SLA spokesman said applications for a lease top-up would depend on factors like whether the development will result in land optimisation and whether the redevelopment is in line with long-term land use plans for the area.

Mr Nicholas Mak, the head of research at SLP International Property Consultants, said the redevelopment plan strengthened Pearl Bank's case.

He also said issues with 99-year leasehold blocks will become more pressing in the next 20 years: "These developments are going to age, but they may still be structurally sound. We will face more questions from owners who want to keep their building, as this makes it easier for them to sell."

Mr Tan's firm, Archurban Architects Planners, has spent about six months drawing up plans.

Owners representing about 45 per cent of the overall share value turned up at an extraordinary general meeting on April 13 to vote on whether to submit the application for voluntary conservation and upgrading to the URA.

More than 98 per cent were in favour.

wrennie@sph.com.sg
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#2
Govt want it back. to amalgate with the forced acquisition of Pearl Centre.
If not, how to justify for building MRT?
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
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#3
interesting notion..the reason why pearl bank failed in the previous enblock attempts I believer is because the building itself says no.

can owners of old hdb flats also ask for conversation order or lease top up? after all, buildings are made to last and structurally, why so wasteful in sg to demolish and rebuild, demolish & rebuild? not so green le
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#4
(23-04-2014, 11:45 PM)pianist Wrote: interesting notion..the reason why pearl bank failed in the previous enblock attempts I believer is because the building itself says no.

can owners of old hdb flats also ask for conversation order or lease top up? after all, buildings are made to last and structurally, why so wasteful in sg to demolish and rebuild, demolish & rebuild? not so green le

What do you mean by Owners? Nobody in SIngapore owns HDB flats other than HDB itself. There are only "tenants" in HDB flats and no owners. HDB tenants do not have land rights which their HDB blocks sit on.

So there is no grounds to ask for a conservation order or lease top up since they have no rights over the land to begin with.
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#5
^^^ Thats what I understood as well, but can someone explain the technicality of HDB giving us the title deed (or safekeeping in HDB) when we fully paid up for the flat? I asked the HDB officer and he also can't explain Big Grin

Trying to figure out if there is a subtle implication, legal loophole, HDB act or something here
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

Think Asset-Business-Structure (ABS)
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#6
(23-04-2014, 11:53 PM)propertyinvestor Wrote:
(23-04-2014, 11:45 PM)pianist Wrote: interesting notion..the reason why pearl bank failed in the previous enblock attempts I believer is because the building itself says no.

can owners of old hdb flats also ask for conversation order or lease top up? after all, buildings are made to last and structurally, why so wasteful in sg to demolish and rebuild, demolish & rebuild? not so green le

What do you mean by Owners? Nobody in SIngapore owns HDB flats other than HDB itself. There are only "tenants" in HDB flats and no owners. HDB tenants do not have land rights which their HDB blocks sit on.

So there is no grounds to ask for a conservation order or lease top up since they have no rights over the land to begin with.
Hi "propertyinvestor",
How to check title deed to a private condo unit is valid? i meant of course checking FOC. Is there a way to google to check?
Thanks!
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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#7
i hope it fails, it sounds unfair to me when the government puts a few 100k into the pockets of each owner overnight just for suggesting the conservation order.

Perhaps if the government approves it, then it should also come with a tax of say 20%, so even if the owners can en bloc at a higher price, they must still pay 20% of the sales proceeds to the government

Call it jealousy but i think those owners dont deserve to earn more money without any increased contribution to society. Even a toilet cleaner adds more value to society
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#8
(24-04-2014, 08:29 AM)specuvestor Wrote: ^^^ Thats what I understood as well, but can someone explain the technicality of HDB giving us the title deed (or safekeeping in HDB) when we fully paid up for the flat? I asked the HDB officer and he also can't explain Big Grin

Trying to figure out if there is a subtle implication, legal loophole, HDB act or something here

The answer to this question is this: When you first buy a HDB flat from HDB Direct, do you sign a sales and purchase agreement or do you sign a tenancy / Lease agreement? Smile

Read the HDB strata title carefully.
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#9
HDB is the owner , is the landlord , the rests are just chief tenants with a 99 year leasehold agreement.
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#10
(24-04-2014, 09:03 AM)Temperament Wrote:
(23-04-2014, 11:53 PM)propertyinvestor Wrote:
(23-04-2014, 11:45 PM)pianist Wrote: interesting notion..the reason why pearl bank failed in the previous enblock attempts I believer is because the building itself says no.

can owners of old hdb flats also ask for conversation order or lease top up? after all, buildings are made to last and structurally, why so wasteful in sg to demolish and rebuild, demolish & rebuild? not so green le

What do you mean by Owners? Nobody in SIngapore owns HDB flats other than HDB itself. There are only "tenants" in HDB flats and no owners. HDB tenants do not have land rights which their HDB blocks sit on.

So there is no grounds to ask for a conservation order or lease top up since they have no rights over the land to begin with.
Hi "propertyinvestor",
How to check title deed to a private condo unit is valid? i meant of course checking FOC. Is there a way to google to check?
Thanks!

Nope. You need to pay money. Nothing is free in Singapore. Even the air you breathe in is polluted. Pls go to SLA website. For a small admin fee, you can run a search and check for encumberances. Big Grin
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