People’s Park Centre En Bloc Sale Relaunch at the Same Reserve Price of S$1.8 billion
People’s Park Centre will seek a $1.8 billion collective sale once again after an earlier failure to do so, which ended in August with no offers.
Owners still hold their hopes high and are expecting good result. The public tender will begin on Tuesday, November 8.
Following the last tender’s conclusion without any offers, ERA Realty Network spent 10 weeks in private conversations with potential bidders, including property developers, fund managers, and international investors.
Developers expressed genuine interest, even if nothing came of it, according to Mr. Sunny Wong of ERA Realty.
The People’s Park Centre consists of a 13-storey and a 30-storey building with 120 apartments, 256 office units, 324 retail shops, and a carpark.
The 99-year leasehold complex was built in 1970 on 95,467 sq ft land and has a gross floor area of about 821,017 sq ft.
The en bloc site is close to the Central Business District and is adjacent to an MRT interchange, according to Mr. Koh Yam Khoon, head of the collective sale committee. He added that they are still hopeful about selling the centre as a whole.
“We are convinced that we will have the first-mover advantage since the Chinatown region needs to be revitalized,” he added.
The reserve price for People’s Park Centre equates to a land cost of $2,620 psf ppr. The difference premium and the premium to upgrade the land tenure to a new 99-year lease are also taken into account.
Upon a successful sale, owners of businesses with a square footage of 4 square meters to 596 square meters may get between $213,000 and $22.7 million in sale profits, while owners of businesses with a square footage of 21 square meters to 510 square meters may receive between $536,000 and $12.5 million.
Owners of flats between 154 and 224 square meters may earn between $2.39 and $3.42 million, while owners of penthouses between 243 and 392 square meters may receive between $3.42 and $5.33 million.
The $1.34 billion Farrer Court transaction, which was completed in 2007, is the largest collective sale here to date.
If a buyer is found, People’s Park Centre will certainly make history as the highest collective sale site ever sold.
The public tender for the prime site will close on December 12, 2022.