People’s Park Centre To Initiate Private Negotiations Soon
SINGAPORE – ERA Realty Network, the marketing agent appointed to sell People’s Park Centre, plans to initiate private negotiations with some property developers over the next 10 weeks after the en bloc sale tender for the mixed-use development closed sans any bids, according to a report from The Straits that was updated on Friday noon (19 August, SGT).
The collective sale tender closed on Thursday (18 August) after the public tender with a reserve price of S$1.8 billion was launched in July 2022.
Real estate experts said the pricey reserve price may have discouraged developers due to its high capital requirement. Still, consortiums or larger conglomerates could be interested in the Chinatown site thanks to its huge size and nearness to Singapore’s central business district (CBD).
“There have been inquiries, but developers had to consider the quantum,” commented Sunny Wong, who is leading the team handling the project’s en bloc sale.
“There’s demand for mixed-use developments especially after the sale of Golden Mile Complex, Tanglin Shopping Centre, Peace Centre and Peace Mansion, and there’s also no additional buyer’s stamp duty (ABSD) for commercial land.”
Notably, the reserve price for People’s Park Centre translates to a land rate of S$2,620 psf per plot ratio (ppr). It also takes into account the differential premium and the premium to refresh the land tenure to 99 years.
The commercial and residential project was constructed in 1970. It consists of a 13-storey building and a 30-storey block containing 120 apartments, 256 offices, 324 shops, as well as a carpark. The development stands on a land plot measuring 95,467 sq ft and has a gross floor area (GFA) of roughly 821,017 sq ft.