2nd Attempt Failed! SLS Tender Result On Dec 30, No Bidders
Some Owners Begin to Put Up their Retail Shop for Sale
In the aftermath of the second collective sale attempt failing for Sim Lim Square, eleven shops in the regularly frequented tech mall have been put up for sale.
Chief Investment Officer at SLP Scotia, Mr Francis Tan recently informed that the tender for second en bloc sale closed on December 30, 2019 without seeing any bids.
SLP Scotia was hired as the marketing agents to manage the en bloc sale.
It is interesting to mention that the strata-titled mall owners had tried to make the deal attractive for the bidders adding another 27% of the built-up space compared to the first tender along with the option of lowering the development charges.
The owners however had stuck to their $1.25 billion reserve price as was the case in the first tender. The first tender had closed in the month of July last year failing to invite any bids.
Mr Tan was candid about the reason behind going for a second attempt with an en bloc sale and said that it was their last attempt before the Collective Sale Agreement expired in March 2020.
The upscale tech mall is located adjacent to the Rochor MRT station. The mall was built in the year 1985 covering an area of 78,152 square feet and has a 99-year leasehold tenure.
There are 492 commercial units spread across six storeys along with two basements.
As per the last Master Plan the area has been zoned for commercial use and hence there was no mandatory lease top up requirement during the sale. There is 63 years of lease balance left for the site.
The lack of interest in this site has surprised many as the commercial property market has been relatively doing well in the collective sale market as compared to the residential properties where en blocs have almost frozen.
In related news the tender submission date for the en bloc sale of The Arcade in Raffles Place with a reserve price of $780 million has seen an extension to March 5 from the earlier date of January 8.
This extension was necessitated after developers requested more time for assessment of the site.
The 11 shop owners who have put up their shops for sale at the Sim Lim Square seems to have run out of patience and aren’t willing to bite the bait for a third collective sale attempt.
The 11 shops have initiated an EOI exercise for $22 million.
These shops can either be bought individually or collectively. All of the shops are located on the 5th floor and are facing the central podium.
Knight Frank Singapore has been hired as the marketing agents for this sale and the agents were optimistic as recent transactions for similar units have seen prices in the range of S$5,000 psf.
Being commercial units, the foreign nationals are eligible to buy this property along with the locals.
There would be no ABSD or SSD applicable on the sale of these properties.
The EOI exercise would come to a close on February 1 at 3:00 PM