The 173 owners of Tanglin Shopping Centre are making their 3rd attempt at selling their property collectively. Hopefully, this time round, they will overcome the hurdles they faced the initial two times, first in 2011 when there was no bid to match their S$1.25b asking price, and second in 2014 when the owners could not reach consensus about selling.
For a collective sale to proceed without any legal hitch, the consenting owners must constitute at least 80% in terms of share value and actual strata area.
Tanglin Shopping Centre comprises a 6-storey development that holds shops, medical suites and different eateries, and tower 12 storeys high, with different offices.
The property owners were set to meet on 3rd November to form a collective sales committee to spearhead the collective sale, joining a list of other commercial properties as well as mixed-use properties already set to go the en bloc way.
Pearl Bank Apartment, a mixed development that is both residential and commercial, is one such example. Its owners have already garnered the minimum signatures needed to proceed with their sales bid. The owners have even named their reserve price, which is S$728 million.
Other good examples of similar properties in the collective sale bandwagon include Goldhill Centre, a property in Novena, and the Katong Shopping Centre along Mountbatten Road.
The owners of these two properties have shown their determination to sell en bloc by forming their respective collective sales committees. They are also psyched to name their respective reserve prices during their extraordinary general meetings set to be held this month.
Also, in the same bandwagon is Jalan Besar Plaza, whose asking price is S$390m, and a neighbouring property, Tai Wah Building, with a reserve price of S$81m. Both properties are freehold, just like Tanglin, and they are located off Orchard Road.
Had Tanglin’s first sales attempt to sell en bloc succeeded, and the developer took all the 68,512 sq ft for redevelopment, the land rate would have been around S$4,200 per square foot per plot ratio (psf ppr).
For the second attempt, during which the reserve price was lower at S$1 billion, the land rate would have been lower, at S$3,200 psf ppr. Having failed in both sales attempts, it will be interesting to see if the owners of this old building will be willing to set their reserve price much lower than before.
According to one of the property owners at Tanglin Shopping Centre, Mr. Hoo, the property is in dire need of rejuvenation. Mr. Hoo, who is the Managing Director of C.T. Hoo, a family firm that owns a jewellery shop as well as an office unit within the shopping centre, says maintenance costs are escalating fast because the building is now old.
The fact that the site’s ownership is freehold
This freehold site is located within Shopping Paradise: Orchard Road
NS22 Orchard MRT station is 10 minutes’ walk away
Tanglin Shopping Centre is between Orchard Parade Hotel and St. Regis Hotel which attract Tourists crowds easily
There are some good educational institutions within a kilometre distance. They include Raffles Girls’ Secondary School, International School Singapore (ISS) – elementary, and International School Singapore (ISS) – Middle School
Also, there are good medical facilities in the vicinity, and they include Singapore Medical Centre, Gleneagles Hospital and Camden Medical Centre.
There are commercial centres nearby that make life convenient and interesting for local residents. They include the Tanglin Mall, Tanglin Place, Cold Storage
Supermarkets, The Gourmet Grocer, La Tanglin Boulangerie, Jason’s, Tanglin Place, Da Vinci Luxury, and the Paragon Market Place.
Tudor Court Shopping Gallery is also very close by
There is also Forum the Shopping Mall as well as the Far East Shopping Centre within close reach, and from there it is easy to access banking services, shopping, and a lot more.
The biggest stakeholder in Tanglin Shopping Centre is Millennium & Copthorne Hotels, with 34% shareholding. The hotels are part of City Developments, which is a property group listed on the Singapore stock exchange.
In the last attempt to sell en bloc, this shareholder was one of the consenting property owners who signed the collective agreement accordingly. It is likely the shareholder will consent to the sale this time as well, considering their property is now even much older and more depreciated.