Far East Shopping Centre Relaunched for En Bloc Sale in 2024
Far East Shopping Centre Latest News:
Far East Shopping Centre’s second collective sale attempt failed as the lower offer of S$850 million did not secure the required 80 per cent mandate from unit owners, achieving only around 60 per cent approval.
The offer was approximately 8 per cent lower than the guide price of S$928 million.
An extraordinary general meeting on May 31 failed to gain enough backing for the price reduction.
Far East Shopping Centre, a distinguished property in the heart of Orchard Road, has returned to the market with a fresh tender.
CBRE, the appointed real estate agency, has relaunched the collective sale at an unchanged guide price of S$928 million.
This move follows a failed acquisition attempt by Glory Property Developments, linked to Chinese businessman Du Shuanghua’s Bright Ruby Resources, in late 2023.
The guide price translates to a land rate of S$3,421 per square foot per plot ratio (psf ppr), factoring in a land betterment charge.
This allows for a potential increase in the gross floor area (GFA) by 20%, under the Strategic Development Incentive (SDI) scheme, to a maximum of 290,574 sq ft.
The scheme, which aims to revitalize aging city buildings, mandates a joint integrated redevelopment with adjacent sites.
Originally developed in 1974, Far East Shopping Centre comprises a five-storey retail podium and a 10-storey office block, along with a two-storey basement.
Approximately 30% of the property is still owned by its original developer, Far East Organization.
The prime property is situated in a prime District 9 location, neighboring significant landmarks like Liat Towers by Bonvests Holdings and Wheelock Place by Wharf Estates Singapore.
This prime site is considered ideal for an integrated mixed-use redevelopment, which could include retail, lifestyle, hotel, and office spaces, subject to URA’s approval.
The current listing presents a unique opportunity for developers to acquire and transform one of Orchard Road’s significant commercial assets into a modern, multi-use complex.
The tender for Far East Shopping Centre is set to close at 3 pm on May 2, 2024, drawing keen interest from developers looking to capitalize on the potential of this prestigious location.
Far East Shopping Centre Sale Aborted: Regulatory Challenges and Owner Disputes Halt High-Profile En Bloc Deal
The en bloc sale of Far East Shopping Centre, initially projected as one of the largest transactions of its kind in 2023, was abruptly aborted due to multiple factors, including regulatory and legal challenges.
The sale process faced a significant setback when the Urban Redevelopment Authority (URA) rejected the redevelopment proposal submitted by the prospective buyer, Glory Property Developments.
The URA’s decision, detailed in a statement dated January 24, 2024, indicated that the proposal was not supported because it involved only a single development site, which did not meet the Strategic Development Incentive (SDI) scheme’s criteria for eligibility.
The SDI scheme aims to encourage the renewal of aging buildings through integrated redevelopment projects that involve multiple contiguous sites.
Further complicating the collective sale process, a letter circulated to the owners on April 8, 2024, revealed that Glory Property had decided to terminate the sale contract.
Additionally, the sale encountered opposition from within the property’s own stakeholders, with four owners initially objecting to the sale through an application to the Strata Titles Board (STB).
Although three of these objections were later withdrawn, the failure to withdraw all objections by the specified deadline led to the STB issuing a Stop Order on April 4, effectively halting the en bloc sale process.
These developments collectively resulted in the abortion of the sale, leaving the future of the Far East Shopping Centre’s collective sale uncertain.
Read the Far East Shopping Centre Previous News Here: