Unit Owners In Orchard Towers To Vote On S$1.6bil Reserve Price
SINGAPORE – Orchard Towers’ collective sale committee (CSC) has advised the units owners to vote on a reserve price at S$1.6 billion for the development’s en bloc sale, reported The Business Times on Friday on Morning (4 February, SGT).
The unit owners at the mixed-use development will also hold an extraordinary general meeting (EGM) on 18 February 2022.
During the meeting, which will start at 2pm, the owners will vote on whether to approve the recommended reserve price, in addition to the method of apportionment of the sale proceeds from the collective sale, among other things.
Notably, a minimum of 80 percent of the strata unit owners will have to give their consent to the en bloc sale of Orchard Towers, before their marketing agent can launch the en bloc tender for the commercial property.
Earlier, ERA head of research and consultancy Nicholas Mak revealed that it can sometimes be hard for a mixed-use project to attain the 80 percent consent threshold, because there is a higher chance that the owners of different types of space could disagree on the method of apportionment of the sale proceeds.
In August 2021, it was reported that the collective sale committee appointed Legal Solutions as the law firm for the collective sale, while Edmund Tie was appointed as marketing consultant. The committee was created after an EGM in April 2021.
Finished in the early 1970s, Orchard Towers stands on a land plot spanning about 65,983 sq ft with a plot ratio of 4.9.
The freehold project consists of 2 structures, with office space and retail premises in the front tower along Orchard Road, while the rear 25-storey tower along Claymore Road contains some commercial units and 58 private residential units. The property also comes with 361 car park lots.
If Orchard Towers secures a buyer, Orchard Towers would become Singapore’s priciest collective sale, exceeding the S$1.34 billion en bloc sale of the former Farrer Court in 2007.
Another en bloc hopeful, International Plaza in Tanjong Pagar, had set a higher reserve price of S$2.7 billion. However, marketing agent Edmund Tie, has not revealed the outcome of the tender that closed last November.