The Place Holdings has acquired the commercial site and plan to use as their Headquarter
Realty Centre has become the 2nd successful commercial en bloc sale for the year. The office building that is located in Tanjong Pagar fetched S$148 million.
However, the sale figure is much lower than the S$165 million reserve price that the owners had expected.
Cushman & Wakefield were the marketing agent for the sale. The 12-storey building had been launched for en bloc sale earlier this year in the month of January.
The Place Holdings which is listed in Singapore has bought this property. As per early information available they have plans to redevelop this property into a mixed-use residential cum commercial tower if they are able to get necessary approvals from the authorities.
In the latest filing to the Singapore Exchange (SGX) the company also mentioned its plans to use the building as its headquarters.
The company is into the business of branding, event management and other tourism related businesses. The Place Investment Group from China backs this Singapore unit of the business.
Realty Centre covers total land area of approximately 11,000 sq ft and as per the 2014 Master Plan from Urban Redevelopment Authority it has been zoned for commercial use.
With 5.6 plot ratio this site has maximum allowable height of 35 storeys.
According to Cushman & Wakefield under the CBD Incentive Scheme that were announced recently this building would be part of the Anson precinct.
Thus, this property might enjoy 25 to 30% bonus in plot ratio in the near future. Under the new plan the site would enjoy 25% bonus in plot ratio if there is change in the use of land to residential cum commercial building.
This bonus shall increase to 30% if the use changes to residential along with first storey commercial.
Christina Sim, Director of Capital Markets at Cushman & Wakefield said that Realty Centre’s location serve as its key advantage as it sits in a place that is expected to undergo great transformation and rejuvenation in the near future.
In terms of connectivity Tanjong Pagar MRT which is part of the East-West Line is close to the site and the upcoming Circle Line’s Prince Edward station would also be close to it.