People’s Park Centre En Bloc Tender Result and Latest News 2022
Excited owners of People’s Park Centre would find the tender result on August 18 disappointing as there are no bidders willing to take over their site.
The lack of offers for the 101 Upper Cross Street may have been influenced by the “high quantum amount of S$1.8 billion,” according to real estate firm ERA Realty Network.
People’s Park Centre, which is in the popular Chinatown neighborhood, was put up for sale by ERA in July with a S$1.8 billion reserve price.
Based on the huge reserve price, the land price works out to S$2,620 psf ppr when the difference premium and the premium to upgrade the land tenure to a new 99-year lease are taken into account.
ERA said that 84% of the owners by strata area and 80% of the owners by share value had agreed to the collective sale before it was put up for public tender.
When questioned whether the reserve price was too high for potential buyers, ERA said, “while the amount is a record for a collective sale in Singapore, the land price is still feasible in the present robust residential market, particularly given the renewed interest in commercial property.”
The agency said that “People’s Park Centre provides an excellent chance for investors to buy a landmark piece of property.” On top of that, there’s no additional buyer’s stamp duty (ABSD) since it is commercial zoned.
Developers are still looking for prime commercial sites with excellent attributes since the successful sales of Peace Centre, Golden Mile Complex, and Tanglin Shopping Centre.
The private treaty phase of the sale has started and will go for 10 weeks.
According to ERA, during this period, a private agreement may be made with a buyer, and the application can be submitted to the strata title boards.
The agent added that, “The bid price will still need to be at or above the reserve price. Failing to match, we will still need to get a new mandate from the subsidiary proprietors.”
ERA said that it is getting in touch with other potential buyers and following up with inquirers. They also said that they do not “see any need for waiver at the first instance.”
People’s Park Centre Site Information
People’s Park Centre, a 99-year leasehold property that was built in 1970, is located at 101 Upper Cross Street in prime district 1, within the core central region of Singapore.
The mixed-use development site has a gross floor area of around 821,017 square feet and is situated on a 95,467 square feet plot.
The complex includes a car park, 120 apartments, 256 offices, and 324 stores spread across 13 and 30 storeys.
According to ERA, if en bloc is successful or a buyer is found, shop owners may earn between $213,000 and $22.7 million in sale proceeds, while office owners may receive between $536,000 and $12.5 million.
Penthouses might bring in between $3.42 million and $5.33 million, with apartment owners receiving between $2.39 million and $3.42 million.
People’s Park Centre – One of the Billion Dollar Sites Managed To Launch in 2022
This year, three prominent sites with billion-dollar price tags have successfully launched in the en bloc market.
International Plaza, which was the most expensive at S$2.7 billion, relaunched their collective sale in the second quarter.
People’s Park Centre with a reserve price of S$1.8 billion, is the second highest. The prime site’s collective sale was launched in July.
Another massive site that needs to be mentioned is Kensington Park Condo in District 19.
The 999-yr leasehold property, with a reserve price of S$1.28 billion, is the third most expensive site managed to be put up in the collective sale market.
So far, there is no news of a takeover for the enormous 491,000 square feet site, which is located at 2 to 12 Kensington Park Drive.
The Chuan Park Condo, which sold for S$890 million, is the only property that stole the show at the 2022 en bloc market.