CDL Unveils Plans For Central Mall After S$315mil Purchase Of Central Square
SINGAPORE – City Developments Limited (CDL) announced on Friday (3 December, SGT) that it intends to redevelop its Central Mall assets and the surrounding area, including Central Square, into a large-scale mixed-use development.
Notably, its unit CDL Constellation has signed a put and call option agreement to buy Central Square from Far East Hospitality REIT for S$313.2 million and the reversionary leasehold interest from OPH Riverside for S$1.8 million. The deal includes an incentive payment of up to S$18 million above the selling price, subject to certain conditions being met by 31 December 2023, including getting planning approval for residential use.
Situated along 20 Havelock Road, Central Square is a 99-year leasehold commercial and residential project, with a remaining lease tenure of around 72 years. The development consists of office space, retail units, and a serviced residence.
The site is located near 3 MRT stations, namely Clarke Quay on the North East Line, Fort Canning on the Downtown Line and Chinatown on the Downtown and North East Line.
At present, CDL owns the 81,660 sq ft Central Mall freehold site, on which stands a 7-storey office block known as Central Mall. It also owns an adjacent 99-year leasehold plot with a remaining term of 71 years, which contains a cluster of conservation shophouses.
Upon completion of the acquisition of Central Square by Q1 2022, CDL intends to redevelop all the sites under the Urban Redevelopment Authority’s (URA) Strategic Development Incentive (SDI) Scheme.
The outline permission received for the redevelopment is expected to boost the gross floor area (GFA) by 67 percent from the current 441,650 sq ft to about 735,500 sq ft. The site will be redeveloped into a mixed-use project that allows for commercial, hospitality, and serviced apartment components, and CDL hopes to potentially add a residential component.
“The strategic acquisition of Central Square crystallises our master plan to shape the precinct’s transformation into a new and vibrant lifestyle hub. This rare placemaking opportunity augments our role in rejuvenating the Singapore River precinct,” said CDL’s Group Chief Executive Officer Sherman Kwek.
“The Central Mall and Central Square redevelopment project marks our 3rd rejuvenation initiative in the Central Area to transform the cityscape,” he added.
Meanwhile, CDL has also started the redevelopment of the former Fuji Xerox Towers at 80 Anson Road under the URA’s CBD Incentive Scheme.
The proposed redevelopment will consist of a 45-storey mixed-use project. Subject to the government’s approval, 25 percent of the area will be dedicated for serviced apartments and 35 percent for residential, while 40 percent will be allotted for both office and retail use.
