SINGAPORE (Jan 11): SingHaiyi Group’s joint-venture firm, SingHaiyi Gold, is acquiring Park West condominium along Jalan Lempeng in Clementi in a collective purchase at a price of $840.9 million.

Owners of the property accepted SingHaiyi’s bid on Thursday, the group says in a filing to SGX.

This is Park West’s third collective sale attempt, after an earlier attempt in 2007 attempt failed to achieve the requisite 80% consensus among owners, and an en bloc tender in 2011 at an indicative price of $803 million did not receive any bids.

The 36-year-old property sits on a land area of approximately 58,867 sqm with a plot ratio of 2.1.

SingHaiyi Gold intends to apply to the Singapore Land Authority (SLA) for the grant of a fresh 99-year lease for the property and to lift the title restrictions in the state lease, which is estimated to incur a lease upgrading premium of $146.0 million.

In addition, an estimated differential premium of $144.6 million is payable to redevelop the site to a maximum permissible gross floor area of about 135,982.8 sqm.

According to SingHaiyi, the acquisition will be funded via internal resources and bank borrowings.

SingHaiyi in December had undertaken a rights issue to raise some $143 million in net proceeds, of which between 70-90% will be used to pursue property investments.

See: SingHaiyi undertakes rights issue to raise $143 mil in net proceeds

The Mainboard-listed real estate group says the en bloc purchase provides an opportunity to acquire a land site within an established residential area, and allows the company to expand its development portfolio in Singapore.

SingHaiyi Gold is a 50-50 joint venture between SingHaiyi Land and Haiyi Wealth.

SingHaiyi Land is a wholly-owned subsidiary of SingHaiyi Group, while Haiyi Wealth is an entity controlled by Gordon Tang and his wife Celine, who are the controlling shareholders and directors of SingHaiyi Group.

Shares of SingHaiyi closed 0.1 cent lower at 11.5 cents on Thursday.