The owners of People’s Park Centre will decide whether to accept or reject the proposed reserve price of $1.3 billion for their en bloc property through voting.
According to market analysts, the $1.3 billion is the maximum bid amount that they have witnessed in this cycle for a mixed-use collective sale. This reserve price is approximately 41 percent premium over valuation.
According to the director of Savills Singapore, Mr Philip Ng who’s also the property’s marketing agent, if a simple majority or 50% of the votes agree with the price, then on the same day, they will begin to collect signatures for the 80% mandate.
Suppose the owners vote for this reserve price, the highest beneficiaries from the sale will be the car-park owner who will pocket $55 million.
Consequently, apartment owners will receive between $1.83 million and $4.07 million. Moreover, the bid will also make the shop owners get between $139,000 to $15.9 million while the office owners will pocket between $419,000 and $3.129 million.
Lee Chin Chee, the sales spokesman, said that the property’s lease period runs down with time. Lee advocated that the owners vote for the bid considering that as the lease period runs down, they may end up getting lower bid than the current one.
Therefore, Lee said that the owners should grab the opportunity now to go for en bloc in this cycle.
In case the majority of owners vote to agree with the reserve price, they will go ahead and conduct another vote for a method of apportionment of their first collective sale attempt.
However, some observers say that attaining the required number may not be a walk in the park.
This is because by divergent opinions where some owners wish that the bid should be adjusted higher while some agree with the price but don’t agree with the method of apportionment.
There are also some owners who circulated letters to express their dissatisfaction on this matter. While some owners are contented with the bid.
Notably, Lee said that there could be fireworks at the EOGM. (War of words inevitable. Be prepare)
While interviewing the owner of Chung Kiu Medicine, Mr Stanley Kwok, he was satisfied with the payout and said he would vote for the reserve price.
Stanley has a space which he inherited from his uncle who bought the space for $300,000 in the 1980s. Currently, Stanley sells traditional Chinese medicine, a business he took over from his uncle and hopes to retire in two years if the collective sale will be successful.
When asked Stanley why he supports the move to sell the property at its current reserve price, he cited that many property owners around here were in their late 60s and 70s and would soon retire.
Therefore, he hoped for a faster sale and better price in this cycle.
People’s Park Centre is situated at 101 Upper Cross Street, in prime district 1 Singapore. Singapore’s District 1 is the country’s thriving Business District and is made up of Cecil, Marina Bay, People’s Park and Raffles Place.
People’s Park Centre en bloc site will be very appealing to any developers and investors.
While the area is primarily known for business and financial interest, District 1 has a numerous historical sites and attractions for residents and tourists to enjoy. Particular in Singapore’s cuisine, the choices range from street food to fine dining. Some wonderful places to go include:
Peace Center Food Court
The Clifford Pier
Telok Ayer Market
Verve Pizza Bar
Marina Bay Sands
Central Business District
Merlion Park Singapore
The district can provide convenient access to other areas of Singapore through numerous bus stations and the following MRT stations:
Chinatown MRT (100m Away from PPC)
Raffles Place MRT
The People’s Park Centre is an iconic landmark mixed-use high-rise building in Singapore’s Chinatown. The high-rise residential and commercial building is very popular among the tourists.
The People’s Park Centre was built in 1970 and the current master plan has zoned for commercial development. It has a car-park, 120 apartments, 324 shops, and 256 offices.
The property sits a 96,000 sq ft site, and approximately 820,000 sq ft gross floor area. Currently, the property remains with 51 years of its lease.
Its location is superb and is one of the most populous districts in Singapore and is rich in culture.
Its Chinese heritage shows in its multitude of shops are a major destination for tourist looking for souvenirs ranging from clothing to handmade items of exquisite and intricate craftsmanship.
The area is very colorful and lively, with tourist and Chinese merchants engage in commerce, with a wide selection of electronic products, bags, textiles, cosmetics, and more in the crowded streets.
According to Mr Ng, since the People’s Park Centre is zoned as a commercial but was built as a mixed-use development, the developer is allowed to erect a commercial building.
Mr Ng also said that in case the developer might want to set up a residential building, they will seek approval from Urban Redevelopment Authority (URA).
Additionally, Singapore Land Authority will also check the property’s granting lease.
Property analysts attribute July’s new cooling measures which never affected commercial buildings to play a crucial role in popularity of commercial properties investment.
Commercial sector is more vibrant now than residential, it looks more appealing to investors and developers.
Currently, foreigners don’t have to pay for additional buyer’s stamp duty for commercial properties and the loan-to-value limits were not changed.
Colliers International released a quarterly report which showed that mixed-use properties have gained popularity since its investment sales rose to $1.5 billion representing 30.2 percent.
The sale mainly originated from the sale of public land for residential and commercial use which amounted to $1.2 billion and the sale of Chinatown Plaza, a private investment for $260 million.