Laguna Park Enbloc: Maths tutor needed!

By The Folks @PropTalk - May 24, 2011 4 Comments

The Straits Times today has reported on the $1.33 billion asking price for Laguna Park, which you probably have already heard about. Laguna Park comprises 516 residential apartments and 12 commercial units.

It goes on to say that the asking price includes about $250 million to top up the 99-year lease and a development charge of almost $269 million to enhance the property’s use.

And if the latest bid comes off, residents of the 34-year-old condo each stand to receive between $2.35 million for a 1,453sqft apartment and $4.5 million for a 3,369sqft penthouse unit. All 12 of the Laguna Park’s commercial units are 1,636sqft and are owned by HDB, which stands to receive a total of $22.2 million from the development’s sale.

The wife and I are struggling with the Maths somewhat:

Asking Price = $1.33 billion = $1330 million

(minus) Lease Top-up = $250 million

(minus) Development Charge = $269 million

(minus) Proceeds for 12 Commercial Units = $22.2 million

Nett Proceeds for remaining 516 Residential Units = $788.8 million

For the sake of simplicity, if we assume all 516 residential units are of the same size (which they are not), each unit will expect to get ($788.8/516) = $1.53 million

So how did ST come up with the figure of $2.35 million for a $1,453sqft apartment..?

Given the supposed $975psf ppr asking price, we suspect the $1.33 billion excludes the cost of lease top-up and DC...


4 comments to ''Laguna Park Enbloc: Maths tutor needed!"

  1. Hi to the above. You do not need a maths tutor but someone understood the en bloc process and figures.

    1.33b is what the owner asking for. To simplify the elastration, let take the 528 units + 12 commercial all equal for Laguna Park.

    1.33b / (528 + 12) = 2.51 mil for each units. ST reported owner will pocket 2.35 mil for smallest unit is correct.
    To workout the psf ppr:
    Total cost for potential buyer include land cost + DP + DC = 1.33b + 250m + 269m = 1.84b
    Land area = 677493
    Plot ratio = 2.8

    Psf ppr = 1.84b / (677493 * 2.8) = 970 psf prr – This is not an rocket science

  2. Elastration is clear and illu-minating

  3. The Folks @PropTalkMay 24, 2011 at 5:29 PM

    Hi Anonymous (24/5/11, 3:12PM):

    Many thanks for the explanation.

    However, your sums just go to show that the $1.33 billion asking price DOES NOT include the DP/DC (contrary to the report in ST today)- this is what we are trying to convey.

    It's either that, or we need a English tutor in addition to Maths... :)

  4. Hi Anonymous (24/5/11, 3:12PM):

    Then what calculations is used to derive that an owner receives $2.35 million for a 1,453sqft apartment and the other owner receives $4.5 million for a 3,369sqft?

    SO sorry as I'm not sure how it works.