High Street Centre In 2nd En Bloc Sale Attempt For S$800mil
SINGAPORE – Unit owners of the High Street Centre are making another collective sale attempt after being granted a 6-month extension by the Ministry of Law under the COVID-19 (Temporary Measures for Conduct of Collective Sale of Property) Order 2020, reported The Business Times on Monday afternoon (17 May, SGT).
The mixed-use building along 1 North Bridge Road embarked on its 2nd public tender at a reserve price of S$800 million, for which at least 80 percent of the unit owners by share value and strata area have already agreed to. But the collective sale committee is in the midst of obtaining the required percentage of votes to lower the reserve price to S$700 million, said Cushman & Wakefield (C&W), the appointed real estate consultant.
Based on the higher reserve price and depending on the acquirer’s proposed uses for the 60,299 sq ft plot on which High Street Centre stands, the land rate translates to S$2,257 to S$2,439 psf per plot ratio (ppr), stated C&W during the prior tender in 2020.
Notably, the site has an allowable gross plot ratio of 7.72, while the mixed-use property has a gross floor area (GFA) of 466,085 sq ft.
The real estate consultant shared that the Urban Redevelopment Authority (URA) will allow the buyer to position at least 60 percent of the GFA for commercial use, including a combination of office space and retail units. As for the remaining 40 percent, it can be set aside for residential use, or for hotel and serviced apartments.
C&W’s Director of capital markets Christina Sim deems High Street Centre as a “trophy asset” thanks to its waterfront promenade of over 100m facing the Singapore River, in addition to having a 360-degree view of Raffles Place, Marina Bay, Fort Canning, and the Beach Road corridor.
“With the scarcity of commercial sites available for development in the central business district (CBD) today and the expected tight supply of commercial space up till 2025, 1 North Bridge Road represents an even more compelling opportunity for developers who want to secure an asset that has the promise of growth,” Sim explained.
Moreover, the Clarke Quay MRT Station is merely a 5-minute walk, while the City Hall MRT Station and Fort Canning MRT Station are 7 minutes and 9 minutes away, respectively. In addition, the High Street Centre is close to landmarks, like The Treasury, Fort Canning Park, Parliament House, the Supreme Court, and the Old Hill Street Police Station.
The 30-storey mixed-use building – which features office space, residential units, and a shopping complex – was finished in the 1970s. It’s prior public tender at the reserve price of S$800 million was held between 16 June and 18 August 2020.
The latest tender for High Street Centre shall close at 3pm on 17 June 2021.