Singapore Famous Skyscraper Going for Collective Sale
Reserve Price May Set at S$2.6 Billion – A New Record
In what could be Singapore’s biggest ever en bloc sale in terms of valuation, International Plaza is gearing up for collective sale.
The site which is located in Tanjong Pagar is eyeing for $2.6 billion or more which will be a new record.
The project which was completed in the 1970s is ranked among the largest integrated developments in Singapore.
The 50-storey development which has 51-year lease remaining of its 99-year lease encompasses GFA of 1.44 million sq ft according to Kevin Liang, Chairman of the CSC (Collective Sales Committee).
In a recent interaction with a local media group he informed that International Plaza was developed by Cheong family, related to the owners of Hong Fok Corp which is listed on SGX.
According to Mr. Liang this is their first attempt at collective sale as majority of the owners are looking to monetize their asset.
He added that another factor attributing to this mood is the spiralling cost of maintenance. He informed that recently the owners had to spend $2.9 million for spalling of concrete and this is expected to be completed by December.
Given that the building is 50 years old and the maintenance cost is only expected to rise, most owners prefer selling en bloc rather than sit over it.
The development sits over 75,089 sq ft and has a total of 1,160 units and falls under Commercial Zone. Of the units the first three floors have 263 shops.
Between the 5th and the 36th floor there are 689 offices and between the 37th and the 50th floor there are 208 apartments that also include two penthouses. Honorary Consulate of Malta and CNBC are among those that are housed in this development.
Mr Liang takes pride in the amenities that were available to the owners of International Plaza. He said that design concept of the building was ahead of its time and there were few developments in Singapore that could have boasted of having a squash court or a swimming pool in the 36th floor in the 1970s.
According to him any new development that comes up here could house a hotel, apartment blocks and offices and turned into one of the most sought after integrated developments in and around Tanjong Pagar.
They have planned for a second EGOM in April next where when they would discuss on the subject of lawyer and marketing agent appointment and also the reserve price as well as the other necessary terms and conditions for the en bloc sale deal.
Mr Liang who is also a part of the Collective Sales Committee for North Bridge Road’s High Street Centre and District 9’s Leonie Gardens, added that post the second EGOM they would begin with the process of collecting the required 80% signature from the owners.
As CEO of EPS Consultants, an IT staffing agency Mr Liang’s company is the owner of eight units at International Plaza and given the fact that it is mixed-use development most people are of the opinion that valuation should be used as the apportionment method in this case.
Under the present asking price the International Plaza’s 689 office unit owners would pocket $1.2 million to $5.5 million according to him.
Chief Executive at Showsuite, a new homes portal Mr Karamjit Singh who also holds the position of JLL’s Senior Consultant says that one of the major challenges for International Plaza would be to agree on an apportionment method that must be considered fair and equitable by all stake holders given the fact that there are offices, apartments and shops involved.
He finished by saying that if the price is realistic and takes into consideration the potential of redevelopment it won’t be tough to attract developers.
Tanjong Pagar is one of the most sought-after Commercial Hub and seen immense growth in the recent times.
Developments such as ASB Tower, Guoco Tower and Frasers Towers come up and there is also an upcoming office development on the site that previously had the CPF building.
Ku Swee Yong who is the Chief Executive at International Property Advisor sees this as the best office area that can be launched once Central Boulevard developed by IOI Properties in Marina Bay area.
According to him the likes of CapitaLand and BlackRock might keep track of this en bloc with great interest.
District 2, a thriving Business District
The District 2 of Singapore spans and is adjacent to the Central Business District, and it covers the Anson Road, Neil Road, Tanjong Pagar, and Shenton Way.
The Anson Road and Tanjong Pagar were among the fastest rising commercial sector within the business district of Singapore as there are different high-rise and towering buildings for offices and commercial use and apartment blocks that line its busy roads.
Among the significant buildings are the Anson Centre, which is a commercial/residential tower built in 1971, the Springleaf Tower, which is designed to have 37-storeys for service apartment complex, the International Plaza, which houses many of Singapore’s employment agencies, and many more.
One of the landmark towers within the District 2 is the Fuji Xerox Towers, which is formerly known to the Singaporean as the IBM Towers.
Lining the District 2 are numerous skyscrapers of well-known multinational companies.
The Tanjong Road, which is adjacent to the Anson Road, features a road of shop houses that are distinct in its historic looks.
Because of the fusion of both old and historic designs and the modern designs in the architecture and structures, shoppers and visitors are given an extraordinary shopping experience.
Major improvements are still on going along the District 2 Anson Road, Tanjong Pagar of Singapore. Being part of the busy and progressive district of Singapore, the District 2 has transformed into a vibrant business location and hotspot to many investors local and international.
Going through the District 2 is easy.
Since the district is connected to the Orchard Road and to other districts of Singapore, going to Anson, Tanjong Pagar can be through the MRT Stations of Chinatown, Tanjong Pagar, Raffles, and Outram Park.
Aside from that, there are also bus stops that are linked to the district.