SINGAPORE – About half of The Centrepoint, the grand dame of Orchard Road in the 1980s, has been put up for collective sale for the first time at a guide price of $418 million on Jan 7.
Developed by Frasers Centrepoint (now Frasers Property) and opened in May 1983, the seven-storey Centrepoint includes a residential complex with 66 units. It comprises Management Corporation Strata Title (MCST) plan numbers 1304 and 1298, and straddles two adjoining plots.
But only the leasehold portion of the property at 176A Orchard Road – comprising the rear of the mall where 66 strata retail units and residential floors are located under MCST Plan No. 1304 – is being offered in this maiden attempt at a collective sale.
The remaining 151 retail units under MCST Plan No. 1298 are not part of this collective sale tender, marketing agent Savills Singapore said.
Mr Jeremy Lake, managing director of investment sales and capital markets at Savills Singapore, said: “As the shops and apartment sizes vary significantly, we estimate that each owner or retail tenant will get about 30 per cent above their current open market value.”
Under the latest URA masterplan, the site is zoned for commercial use with a plot ratio of 5.6 and a maximum height of 10 storeys, allowing for redevelopment into a new mixed-use development.
Located in Singapore’s iconic shopping belt, the property has about 52 years left on its 99-year leasehold tenure, and a site area of about 44,700 sq ft.
The $418 million guide price translates to a land rate of $2,709 per sq ft per plot ratio (psf ppr). This is after factoring in a land betterment charge of $260 million for topping up the lease to a fresh 99 years and intensifying the total gross floor area to a plot ratio of 5.6.
Only MCST Plan No. 1304, which can be independently redeveloped, received 80 per cent consensus from its unit owners for the development, Mr Lake said.
“Nothing is happening at MCST 1298 and there are no plans for a sale,” he added.
According to the Singapore Land Authority, the property has a verified development baseline of approximately 171,482 sq ft, equivalent to a plot ratio of 3.83, and a maximum allowable gross floor area of about 250,320 sq ft.
Mr Lake added: “Developers have been bidding aggressively for Government Land Sales sites, and some of them will be keen to buy a part of The Centrepoint.
“For this reason, we are confident we can exceed the guide price of $418 million…
“With its direct link to Somerset MRT station, excellent accessibility, and location in the heart of Orchard Road, the property offers developers a chance to develop a landmark property with an internationally recognised address.”
Savills has brokered several major collective sales in Orchard Road, including Concorde Hotel & Shopping Mall at $821 million, or $1,804 psf ppr; Delfi Orchard at $439 million, or $3,346 psf ppr; Tanglin Shopping Centre at $868 million, or $2,769 psf ppr; and Ming Arcade at $172 million or $3,125 psf ppr.
There are no restrictions on foreign ownership. The public tender will close on Feb 26 at 3pm.