Global Dragon buying Katong Omega Apartments for S$46.3m in en bloc deal

CATALIST-listed Global Dragon Limited, the former TMC Education Corporation that recently changed its core business from education to property development and property investment, has dipped its toes into the collective sales market as well.

It is buying Katong Omega Apartments in a collective sale for S$46.31 million.

This was the highest bid among seven contenders at the close of the public tender on April 5, according to marketing agent Teakhwa Real Estate.

Global Dragon is now controlled by Singapore tycoon Koh Wee Meng, the chief executive of real estate company Fragrance Group. He owns a 53.05 per cent stake in the group following the close of his mandatory takeover through a private vehicle.

In a regulatory filing on Friday, Global Dragon said its wholly owned subsidiary GDL Land Pte Ltd tabled the bid for Katong Omega Apartments.

The 18-unit freehold development in District 15 has a land area of about 27,902.2 sq ft, zoned "residential" with a plot ratio of 1.4 and allowable height of up to five storeys.

The potential gross floor area (GFA) of about 39,063.4 sq ft could house some 36 apartments of about 1,076 sq ft per unit for the new residential development, subject to the relevant authorities' approval, said Sieow Teak Hwa, managing director of Teakhwa Real Estate.

The development charge (DC) for intensification of land use to the maximum allowable GFA and a 10 per cent bonus balcony GFA is S$2.7 million.

Mr Sieow estimated that the overall land rate works out to S$1,192.9 per square foot (psf), or S$1,140.7 psf if the 10 per cent bonus balcony GFA is included.

Each unit owner is slated to pocket between S$2.52 million and S$2.6 million, or more than 120 per cent of the current value if they sold in the open market individually, he said.

The latest deal brings the total collective sales value year-to-date to S$6.14 billion - 75 per cent of the total value of residential sites sold collectively last year.

The former TMC Education Corporation had in February announced a new management and board of directors, after the sale of its education subsidiary, TMC Academy, to the firm's former controlling shareholders.

TMC Academy was sold for S$6.32 million to Advanced Investment Holdings, a special purpose vehicle controlled by TMC Education's executive chairman Chin Kon Yuen and his wife Yeow Cheng Khim, the firm's director and chief executive. They had earlier sold a 51 per cent stake in TMC Education Corporation to Mr Koh.

Adapted from: The Business Times, 7 Apr 2018