The commercial heart of Singapore, Orchard Road, witnesses another monumental real estate transaction as Chinese tycoon Du Shuanghua bags the Far East Shopping Centre.
This acquisition, totalling approximately $908 million, was facilitated through his financial arm, Glory Property Development, an offshoot of the Singapore-based Bright Ruby Resources.
The financial intricacies of this deal are equally impressive. The acquisition stands at roughly $3,350 psf per plot ratio (psf ppr), considering the vast 290,574 sq ft of potential gross floor area.
This transaction was ingeniously navigated under the Strategic Development Incentive (SDI) scheme, with Michael Tay from CBRE playing a pivotal role in sealing the deal.
Orchard Road’s Vibrant Evolution
CBRE’s Michael Tay fondly recalls the transformation of Grand Park Orchard into the lavish 308-room Pullman Singapore Orchard, spearheaded by the Accor Group.
Moreover, the former residence of Abercrombie & Fitch now showcases Singapore’s grandest Adidas store. Apple Store, Rolex, and The Hour Glass are other prime occupants adding to Orchard Road’s glamour.
Bright Ruby’s keen vision on global prime assets and their expertise in enhancing them is evident. “Their knack for rejuvenation will undoubtedly redefine Orchard Road’s landscape,” Tay opines.
The Facelift of the Far East Shopping Centre
Located strategically at 545 Orchard Road, the Far East Shopping Centre flaunts a stunning 75-meter frontage facing Orchard Road and another 55-meter frontage towards Angullia Park.
Sitting in the coveted District 9, this commercial treasure spans 36,014 sq ft with a historic 999-year lease, dating back to 1871.
With Du at the helm, the centre is poised to metamorphose into a commercial powerhouse, blending retail, hospitality, offices, and residences.
This transformation aligns with URA’s vision of turning specific Orchard Road stretches into dazzling destinations.
The Far East Shopping Centre is earmarked among six such buildings, promising a more vibrant Orchard Road.
SDI’s Attractive Offering and Orchard Road’s Revamp
The SDI scheme, introduced in April 2021, has already incentivized numerous property owners to infuse fresh life into their assets.
Owners collaborating with neighbors for a collective redevelopment stand to gain a 20% bonus in gross floor area (GFA), among other benefits.
Far East Shopping Centre’s acquisition price sets a new benchmark, outdoing the previous record held by Ming Arcade.
This vibrancy in commercial property transactions, including significant deals like Pacific Eagle Real Estate’s acquisition of Tanglin Shopping Centre, emphasizes the ongoing renaissance of Orchard Road.
In essence, as Singapore’s Orchard Road undergoes a significant metamorphosis, Bright Ruby Resources and tycoons like Du Shuanghua are at the forefront, crafting the future of commercial real estate.