Tag Archives: The Parisian Enbloc

Its shares fall 31% to close at $10 after company updates SGX on the move

OVERSEAS Union Enterprise (OUE) is considering the sale of 21 Angullia Park – a freehold residential site formerly known as The Parisian – which it bought en bloc for $228.1 million in 2007.

Boom-time deal: OUE bought 21 Angullia Park en bloc for $228.1 million in 2007, when the property market was booming, and had plans to launch a condo on the site early last year. It has not launched the project so far

The company said yesterday it is ‘engaged in preliminary discussions in relation to the possible disposal’ of the site. It added that it is reviewing its overall financing strategy.

‘As at the date of this announcement, there has been no agreement of definitive terms and there is no certainty that such discussions and review will proceed beyond preliminary stages or result in any transaction,’ it said.

OUE was responding to a Singapore Exchange query on the counter’s movement last Friday. OUE shares surged 57 per cent or $5.27 to close at $14.50 – a high not seen in more than a year.

After the update yesterday, the shares tumbled 31 per cent or $4.50 to $10.

OUE bought 21 Angullia Park near Orchard MRT Station when the property market – especially the high-end sector – was booming. Several developers were gunning for sites via collective sales.

The price of $228.1 million worked out to $1,735 per square foot per plot ratio (psf ppr) – a record on a psf basis for a while. This took into account an estimated $10.5 million development charge. Based on an earlier report, the breakeven cost for the project could be around $2,200 psf. Continue reading →

A FREEHOLD residential site valued at $261.1 million has been earmarked for disposal by Overseas Union Enterprise (OUE).

In a statement to the Singapore Exchange (SGX) yesterday, the mainboard-listed company disclosed it was engaged in preliminary discussions about the ‘possible disposal of its residential site at 21 Angullia Park’.

OUE paid a hefty $228.1 million, or $1,735 per sq ft (psf) of potential gross floor area, two years ago for the site of The Parisian condominium.

In the half-year financial report ended June 30, the site is valued at $261.1 million.

The company admitted it was looking to dispose of the land in response to a query from SGX, prompted by a 57 per cent jump in its share price last Friday to $14.50.

In stark contrast to its second-quarter net profit of $12.1 million a year ago, the company posted a net loss of $47.8 million for the same period this year. Continue reading →