Singapore’s Katong Shopping Centre is being launched for collective sale through tender with a reserve price of S$630 million (US$465.786 million).
This works out at S$2248 per square foot per plot ratio (psf ppr) based on the development’s existing gross floor area (GFA) of 280,203 sqft.
Inside Retail Singapore reported a week ago that the centre might soon try for the third time to seek a buyer, with the agreement of more than 80 per cent of the owners of the 425-unit mall.
“It is expected that Katong Shopping Centre will be a project ideal for ‘additions and alterations’ (A&A) to recreate a landmark mall,” says director of capital markets Christina Sim of Cushman & Wakefield (C&W), which is marketing the collective sale of the property.
“There is also a possibility of setting aside about 3000 sqm (32,292 sqft) for medical suites, subject to approval.”
Under the Urban Redevelopment Authority‘s (URA) Master Plan 2014, the 86,924 sqft freehold site is zoned for commercial and residential use. C&W has applied for outline planning permission for full commercial use. If the URA gives the approval, a new full-commercial project on the site can be developed up to the current GFA, with no development charge payable, says Sim.
C&W says the en-bloc sale provides a rare opportunity for a large developer/contractor or a consortium to acquire a commercial site in the affluent Mountbatten/Amber Road locale.
Katong Shopping Centre, which opened in 1973, comprises a seven-storey podium block and a five-storey annex. It has 425 shop and office units as well as 323 parking spaces.
Owners control at least 80 per cent of the total share values and strata area in the development, while City Developments controls 35 per cent of share value through its ownership of 61 shop/office units and all the parking lots.
The tender for Katong Shopping Centre closes on September 8.
