Tanglin Shopping Centre Snapped Up In S$868mil En Bloc Sale
SINGAPORE – Tanglin Shopping Centre, a mixed-use project with office space, has been purchased for S$868 million or S$2,769 psf per plot ratio (psf ppr) assuming it will be redeveloped for full commercial use, according to a press release published by marketing agent Savills on Wednesday afternoon (23 February, SGT).
At present, it is a 12-storey commercial property with two basement levels and an annex 8-storey carpark. The main complex contains retail and office units situated from basement 2 to level 6 of the podium block, while level 7 to 12 houses office units. Carpark lots are also available in the main complex’s basements 1 and 2. Overall, there are 364 in the freehold development.
Tanglin Shopping Centre was constructed in two stages, the primary complex was finished in the 1970s, while the office tower extension was completed in the early 1980s.
The buyer is Pacific Eagle Real Estate (PER), a Singapore-based property investor and developer privately owned by the Tanoto family. However, the deal requires the approval of the Strata Titles Board.
“Tanglin Shopping Centre is one of Singapore’s earliest retail landmarks and occupies a prominent location next to the St Regis Hotel in the Orchard Road enclave,” said Sun You Ning, Director at Pacific Eagle Real Estate.
“Pacific Eagle Real Estate is honoured to have the opportunity to create an iconic development befitting the property’s heritage and its frontage along one of our island’s most important streets.”
The tender for the commercial property’s collective sale closed yesterday 22 February and is said to have attracted five bids, including from Perennial Holdings and Far East Organization. City Developments Ltd (CDL), which owns almost 35 percent of the share value and around 60 percent of the strata area in Tanglin Shopping Centre did not participate in the bidding.
“The tender for Tanglin Shopping Centre was keenly contested. The key appeal of the site is it being a freehold commercial site, which allows buyers the flexibility of various development options,” noted Jeremy Lake, Managing Director of investment sales and capital markets at Savills Singapore.
“This is the fourth collective sale attempt by Tanglin Shopping Centre and Savills is excited to have achieved success for the owners. The marketing campaign ran by Savills resulted in a competitive bidding exercise which resulted in a price that is 10 percent above the reserve price,” added Savills’ Deputy Managing Director of investment sales and capital markets, Galven Tan.