The Singapore unit of Royal Golden Eagle, whose business ranges from palm oil to pulp and paper has picked up Chinatown Plaza in a collective sale for S$260 million.
The conglomerate that was founded by Indonesian businessman Sukanto Tanoto has paid S$1,915 psf ppr (per square foot per plot ratio) according to Edmund Tie & Company that was the official agent for the en bloc sale.
The site which is located on Craig Road encompasses an area of 33,953 sq ft and has been categorized for residential and commercial use under the 2014 Master Plan.
RGE can potentially redevelop the property with maximum permissible GFA or 135,742 sq ft. The Urban Redevelopment Authority has already granted permission to redevelop the site into serviced apartments that can be put to commercial use.
Under the deal the residential unit owners are likely to earn $3.44 million to S$4.79 million in terms of sales proceeds while the retail store owners would earn between S$1.64 million and S$10.62 million depending on the size of their units.
ET&C’s Director for Investments, Swee Shou Fern believes it is a good buy for RGE as there aren’t too many freehold sites in the area that have been identified for mixed use.
She added that given Chinatown Plaza’s attractive location and easy access to MRT station and a vibrant community this site offers developers the perfect opportunity to turn it into a serviced apartment.
RGE can also hold on to this freehold site for long thus serving as a great long-term investment for the group. RGE whose assets exceed U$18 billion has been in the business of manufacturing and enjoys a large global footprint.
Edmund Tie & Company is also the marketing agent of Casa Meyfort, a freehold site in District 15 which Tender close on May 21.
So far in year 2018, they have sold many en bloc sites namely Toho Mansion, Makeway View, Asia Gardens and recently in District 11 Peak Court. Including Chinatown Plaza, they have sold over $1 billion in collective sales.
Owners of Chinatown Plaza, a freehold property in District 2, have decided to sell their units collectively, and they have set the property reserve price at S$270 million.
This information was released by Edmund Tie & Company, the firm property owners have appointed as marketing agents.
Bids will be accepted up to Mar 15 when the public tender closes.
The agents disclosed in a press release that although the permissible plot ratio has been revised in the 2014 Master Plan to 3.5, the new developer could still get approval to redevelop the prime freehold site to match the current gross floor area (GFA) of 135,742 sq ft (12,610.89 sq m).
The apartment sits on an area 33,953 sq ft (3,154.3 sq m) in size, and its location has been zoned for both residential as well as commercial use.
Going by the reserve price for this prime site, the land rate will be S$1,989 psf ppr and there is no development charge anticipated.
Edmund Tie & Company is optimistic about the sale of Chinatown Plaza not only because of the advantage of being a mixed-use site, but also because of its prime location.
The site lies within the Central Business District, at the junction of two secondary roads – Craig Road and Neil Road.
It is also close to Keong Saik Street, which is a busy area popular for its boutique hotels, co-working space, as well as numerous food and beverages business spots.
Also, the site has great communication, with a number of MRT stations nearby. NE3 Outram Park, Maxwell and EW15 Tanjong Pagar are all less than a kilometre away.
The marketing agent’s senior director of investment advisory, Swee Shou Fern, suggested the successful bidder could pre-sell the new residential units in order to take advantage of the upbeat mood within the residential market environment, and then retain the commercial space for redevelopment or to use it as their corporate office.
She also said the property would suit serviced apartments or a hotel.