Complete Property Market Updates of Singapore

March 30, 2008

Kuwaiti firm still in talks over mega deal

Filed under: General — Propertymarketupdates @ 3:50 pm

A MAJOR $818.4 million residential property deal that fell through recently could be revived.

The potential buyer, Kuwait Finance House (KFH), said last week it was still in talks to buy the 97 units at GuocoLand’s freehold Goodwood Residence.

KFH said it had a positive view of the outlook for Singapore’s property market.

A fund to be managed by the Islamic investment bank had agreed on the deal last December.

However, KFH did not exercise its purchase options, which lapsed, GuocoLand said on March 10. It also said the parties were in talks ‘with a view to a grant of fresh options for units in the development’.

Last week, KFH said it was still in talks with GuocoLand with respect to the ‘terms of the purchase’, which are being reviewed by both parties. Industry sources had speculated that KFH wanted out as the price was too high.

KFH had done the deal at a median price of $3,200 per sq ft (psf), when nearby projects in the Bukit Timah/Newton Circus area were going for an average price of $2,500 psf or below.

KFH said it was upbeat about Singapore, given the Republic’s status as a financial hub, the integrated resorts and the introduction of events such as Formula One.

‘The current cautious sentiment driven by external factors will abate in due time and, as a global city, Singapore will remain an investment destination for international real estate investors,’ KFH said.

Source : Straits Times – 24 Mar 2008

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