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Sevens Group acquires the Treasure Island Bungalow in a mortgage sale for $ 12,900,128
The bungalow on 8 Treasure Island has a 27 m long facade and a driveway that is big enough for seven cars (Photo: PropNex). SINGAPORE (EDGEPROP) – When a bungalow was put up for sale at auction at 8 Treasure Island in Sentosa Cove in March this year, Eric Cheng, founder and CEO of Sevens Group, a niche land developer, was delighted. (See: Treasure Island’s First Mortgage Sale on Treasure Island for $ 12.9M.) Cheng went down to see the property: it was a bungalow on a 99-year lease of 8,379 square meters with a built area of 9,362 m² ft. The 21⁄2-story single-family home has five en-suite bedrooms, a basement and a 27-meter-long facade with a driveway for seven cars. The house has a 22 m long facade along the waterway and has a private jetty. The Fenens Group has been buying a bungalow in Sentosa Cove since early last year, says Cheng. Sentosa Cove bungalow prices peaked at 3,214 psf in October 2012 when an ocean view lot on 10,111 square feet of land along Ocean Drive changed hands for $ 32.5 million. “We think Sentosa Cove prices are rock bottom today and it’s definitely worth a closer look,” he adds. If the Sevens Group is looking to refurbish or extensively add to or remodel a bungalow in Sentosa Cove, including changing the facade, Cheng’s options are limited to those bungalows developed by individual owners on individual lots that Sentosa Development Corp. sold. These are located along Ocean Drive, Cove Way, and Lakeshore View on the North Cove. As well as those on South Cove like Cove Drive, Cove Way and Cove Grove. Among the five islands in Sentosa Cove, four were bought by developers: Coral Island with 21 villas and the Paradise Island with 29 villas were developed by Ho Bee Land; Sandy Island with 18 villas was developed by YTL Land. and Pearl Island with 19 villas from the Chinese developer Ximeng Land. The facade of the bungalows needs to be retained to match the other bungalows on the same island, says Cheng. This means that he cannot renovate the property or make facade changes to the properties on these islands. This leaves only one island, namely Treasure Island, which was bought by a group of tycoons in 2007 and expanded into 19 villas. Although the 19 villas have a facade similar to that designed by CPG Corp and completed in 2009, the individual bungalows can be refurbished and the facade changed, says Cheng. He had considered several other bungalow lots, including one on Cove Drive. overlooking the Tanjong golf course. However, the deal failed due to a mismatch in price expectations between buyer and seller. The bungalow on Treasure Island has a 22 m long facade with a private mooring along the waterway (Photo: PropNex). 8 Treasure Island: Designing a ‘trophy home’The bungalow at 8 Treasure Island was attractive to Cheng because it was a mortgage sale and was the first mortgage sale on the island. Several other mortgages have been sold elsewhere, such as Coral Island, Paradise Island, and Sandy Island. The bank’s target price for the Treasure Island property was $ 12.88 million (1,537 psf). When Cheng found it was a distressed sale, he initially offered $ 11 million, which the bank declined. Since the property was hotly contested, all brokers who marketed the property had to submit offers from interested parties by mid-April. Cheng reached out to Bruce Lye, managing partner of SRI, to help broker the business. Cheng’s business associate and a Sevens Group director placed a bid of $ 12,900,128 (1,540 psf), which was $ 20,128 above the target price, the highest bid received. That led them to secure the property. While the option was recently exercised, the reservation has yet to be filed. As the new owner, Cheng is already planning to invest another US $ 2.5 to 2.8 million in extensive additions and changes over the next 12 months. He plans to change the facade, reconfigure the interiors and turn the spacious basement into a karaoke lounge and entertainment area. He intends to select designer furniture from luxury brands such as Hermes, Louis Vuitton and Armani. “I want to design a stunning trophy house,” says Cheng. When the major renovations are complete, Cheng plans to bring it to market at a cost of “over 2,500 psf,” which equates to over $ 21 million and will invest $ 2.5 million to $ 2.8 million in major additions and conversions to turn the property into a “trophy house” (Photo: PropNex). Back to top prices? In Sentosa Cove’s heyday between 2010 and 2013, aside from the Ocean Drive bungalow, three other bungalows had changed hands in 2012, priced in the high range of 2,900 psf Raised $ 28.2 million (2,989 psf) in 2010; Another at Lake Hore View in front of the Serapong Golf Course, the lake and the sea behind it changed hands in May 2013 for USD 24.8 million (2,952 psf). and another property followed along Lakeshore View at $ 26 million (2,922 psf). In September 2016, another oceanfront property along Ocean Drive fetched $ 28 million (2,923 psf) based on reservations submitted. The two largest bungalow deals in Sentosa Cove, in terms of absolute prices, were both made this year: The Copper House, which is located on one of the largest lots of 18,053 square feet (amalgamation of two neighboring lots) Raised $ 43,666,000 (2,419 psf) on a restriction filed in February. Another bungalow on Ocean Drive, which is also the result of two neighboring locations with a land area of 19,551 square feet, was priced at $ 39,333,999 in April. Recently, a bungalow with a convenient address on Coral Island was changed hands for $ 10.3 million (1,371 psf), according to a restriction filed on May 5. The property was built in 2007 and is on a 99 year lease of 7,511 square feet. The previous owner paid $ 5.488 million (731 psf) for the property when Coral Island first opened in December 2005. Cheng believes that this is an opportune time for Sevens Group to “expand our presence in Sentosa Cove” and carve out a niche in Singapore’s best neighborhoods. “Some Singaporeans are concerned about the 99-year lease in Sentosa Cove,” says Cheng. “However, investing in real estate is not for those looking to make a short-term profit. As developers, we look to the medium to long term and focus on the top 1% of the market. “Foreigners can buy bungalows in Sentosa Cove, unlike anywhere else on the mainland. However, they still need to be approved by the Singapore Land Authority’s Land Dealings Approval Unit. There are only around 300 such bungalows in Sentosa Cove. “The number is very limited,” added Cheng. Check out the latest deals near Treasure Island, Sentosa Cove, Ocean Drive, Cove Way, Coastline Views, Cove Drive, and Cove Grove. Advanced Analytics Tools Singapore Condo and Land Launch (COMPLETE listing and updates) Copper House was tipped for $ 43.67 million after two years [UPDATE] Ho Bee is launching 16 remaining units at Turquoise at prices starting at 1,290 psf. First mortgage sale of a bungalow on Treasure Island for $ 12.9 million en bloc calculator. Find out if your condo will be the next HDB en bloc resale apartment for sale. Affordable units available
