When residential property owners in established districts seek to maximize their investment returns, en bloc sales often present an attractive opportunity. This is demonstrated by the recent collective sale of Chiku Mansions in District 15, which Macly Group successfully secured for $22 million.
This freehold residential property transaction represents a broad combined sale involving all unit owners selling together through a single transaction. It capitalizes on the prime location’s redevelopment potential and market attractiveness.
The en bloc sales process requires substantial coordination among property owners. This begins with initial discussions and the formation of a sales committee that negotiates with potential buyers and represents owners throughout the transaction.
Under Singapore’s Land Titles (Strata) Act, the collective sale necessitates specific consent thresholds. It requires at least 80% agreement for developments older than 10 years or 90% consent by share value and strata area for properties under 10 years. If unanimous consent cannot be achieved, the Strata Titles Board may become involved.
Property owners typically pursue en bloc sales to receive above-market returns for their units, particularly when dealing with older developments. These often offer attractive redevelopment opportunities due to underlying land value. The Collective Sales Agreement must be signed within 12 months once the required threshold is met to formalize the process. The process typically involves engagement of legal experts, valuers, and property consultants to ensure proper execution.
The sale price commonly includes premiums over current individual resale values. Reserve prices are set collectively above current market valuations to generate developer interest. The final proceeds are distributed among unit owners based on share value or pre-agreed apportionment formulas.
From the developer perspective, Macly Group’s acquisition of Chiku Mansions provides bulk land parcel consolidation opportunities. This increases redevelopment efficiency and profitability while capitalizing on District 15’s established neighborhood appeal.
Developers must evaluate permissible plot ratios, allowable gross floor area, and urban redevelopment regulations when determining deal viability. Transaction prices reflect both current property values and projected post-redevelopment gains.
The average en bloc process duration extends up to two years. It involves initial meetings, negotiations, and legal preparations before sale completion. Legal completion occurs only after relevant authority approvals and condition fulfillment. Zoning regulations significantly impact the development potential by determining allowable density and various development options for the acquired property.
Such transactions contribute notably to mature estate rejuvenation and land use optimization in Singapore. District 15 remains a popular target for developer acquisition due to its prime location status and consistent redevelopment interest.
