En bloc fever spreads to commercial properties

Keshia Faculin25 Oct 2017

View of Singapore skyline. (Photo: Wikimedia Commons)

More commercial and mixed-use projects are joining the en bloc sales frenzy after a number of residential developments have successfully changed hands, reported the Business Times.

For instance, three integrated developments have been launched for collective sale. Owners of the freehold Tai Wah Building and Besar Plaza are asking for $81 million and $390 million respectively, which translates to $2,035 psf per plot ratio and $2,170 psf per plot ratio.

In Yio Chu Kang, owners of ICB Shopping Centre hope to sell the property for $65 million to $70 million, which works out to between $1,390 psf and $1,500 psf.

Owners of the 119-unit retail mall Bugis Cube, previously known as North Bridge Commercial Complex, are also in the process of launching their collective sale.

Meanwhile, owners of Katong Shopping Centre in Mountbatten Road and Goldhill Centre in Novena have created collective sales committees. Both groups plan to decide on the reserve price during their upcoming extraordinary general meetings next month, according to their marketing agent Cushman & Wakefield.

However, experts noted that en bloc sales involving commercial buildings are often more complex and takes a longer time compared to those involving housing estates.

In 2008, the 87-unit Goldhill Centre was put up for sale for $315 million or $1,496 psf based on its potential gross floor area (GFA). But the owners failed to secure a buyer for the site comprising a mix of freehold and 999-year leasehold commencing from 1970.

As for the 425-unit Katong Shopping Centre, this marks its third attempt to find a buyer after its second sales exercise expired last April with a reserve price of $630 million or $2,248 psf per plot ratio based on its land area. For the latest en bloc attempt, they reappointed Cushman & Wakefield as marketing agent and retained the selling price.


This article was edited by Keshia Faculin.


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