People’s Park Centre Fails To Attract Buyer In Latest En Bloc Sale Attempt
SINGAPORE – The collective sale tender of the People’s Park Centre, a mixed-use development in Cross Street containing office space, recently closed sans any bidders, reported The Business Times on Thursday afternoon (22 December, SGT).
This makes People’s Park Centre one of the latest en bloc sites that failed to attract any buyer this year, alongside residential development Loyang Valley.
Notably, this marked the People’s Park Centre’s 2nd attempt at an en bloc sale. The 99-year leasehold project was first launched for sale on 6 July 2022 with a reserve price of S$1.8 billion, but the tender exercise closed on 18 August 2022 with zero bids.
The tender exercise was relaunched on 8 November 2022 at the same reserve price, which translated to a land rate of S$2,620 per sq ft per plot ratio (psf ppr). This included the differential premium and the premium to refresh the site’s leasehold tenure to 99 years. However, there were no takers in the latest collective sale tender.
Market watchers reckon that would-be buyers were turned off by the People’s Park Centre’s hefty selling price of nearly S$2 billion amidst rising construction costs.
Notably, earlier attempts to dispose the commercial property via en bloc sale for S$1.35 billion and S$1.5 billion in 2019 fell through, as not enough unit owners gave their consent to the collective sale back then.
Located in Chinatown, People’s Park Centre consists of 120 apartments, 256 office units, and 324 shops housed within a 30-storey building. It also contains a car park.
The mixed-use commercial property stands on a land plot measuring 95,467 sq ft and the entire building has a gross floor area (GFA) of roughly 821,017 sq ft.
