On Monday (24 July), real estate services and investment firm CBRE announced that Far East Shopping Centre is up for collective sale.
The mall has a S$928 million guide price and is currently the only commercial site for sale along Orchard Road.
Source: Google Maps
According to CBRE, the site is eligible to participate in the Government’s Strategic Development Incentive (SDI) scheme.
The scheme encourages the redevelopment of older buildings to rejuvenate Orchard Road.
Channel NewsAsia (CNA) reported that the S$928 million guide price is determined by a maximum buildable gross floor area (GFA) of 290,574 sq ft under the SDI scheme.
Just 200 metres away from Orchard MRT, the site can be part of the Urban Redevelopment Authority’s (URA) scheme.
Source: Google Maps
“We believe this opportunity will appeal to both local and foreign developers,” CNA quoted CBRE’s head of Singapore capital markets Mr Michael Tay as saying.
Additionally, he noted that the incoming buyer will have the freedom to “create an iconic mixed-use development in the most prominent street in Singapore”.
The site is currently zoned for commercial use and has a 999-year land tenure with effect from 1871.
Hence, the successful bidder doesn’t need to pay additional buyers’ stamp duty (ABSD).
It’s also the only commercial site available for sale along Orchard Road.
Under the SDI scheme, the buyer can extend the GFA of the redeveloped building by 20%, reported The Straits Times.
However, the buyer must engage in a “joint integrated redevelopment” with adjacent sites.
Far East Shopping Centre stands next to voco Orchard Singapore hotel.
Source: Google Maps
Apart from joint redevelopment, the scheme suggests implementing direct underground pedestrian links from Orchard MRT stations which will boost foot traffic in that part of Orchard Road.
Additionally, developers can look at a combination of different land uses under the scheme.
This includes retail, office, Mice (meetings, incentives, conventions and exhibitions) facilities and lifestyle uses.
The tender exercise for Far East Shopping Centre will close at 3pm on 20 Sep.
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Featured image adapted from Google Maps.
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