People’s Park Centre consists of 120 apartments, 256 offices and 324 shops. (Photo: Smuconlaw, Wikimedia Commons)
People’s Park Centre, a mixed-use project along Upper Cross Street in Outram, has increased its reserve price from $1.3 billion to $1.35 billion for its first collective sale attempt, reported the Straits Times.
The new price translates to a 45 percent premium over valuation compared to 41 percent previously. This comes after the majority of the unit owners who took part in the extraordinary general meeting (EGM) on Wednesday approved the higher price and the method of apportionment.
“We have one year from 9 January 2019 to get the 80 percent mandate. But our target is to get it within four months. If we are able to do so, the tender will be launched by the middle of the year,” said the collective sale committee’s spokesperson Lee Chin Chee.
“The method of apportionment is structured as such: 80 percent is based on the valuation of the units, 10 percent on the area of the units, and 10 percent on share value.”
With the new price, Lee revealed that apartment owners can expect to pocket between $1.885 million to $2.683 million. Shop owners can get $267,000 to $16.4 million, $432,000 to $4.431 million for office owners, while the carpark owner can receive $56.7 million.
People’s Park Centre consists of a carpark, 120 apartments, 256 offices and 324 shops. Built in 1970, the 99-year leasehold project has a remaining lease of over 50 years. It has a gross floor area (GFA) of about 820,000 sq ft and stands on a 96,000 sq ft site that is intended for commercial use under the current masterplan.
However, some of the unit owners rejected the en bloc sale due to some disagreements over the price. “Only 62 shop units had their sales proceeds adjusted higher by a total of $9 million. The other 639 units remained unchanged. That is the main (cause of) disgruntlement among those objecting. Some also think the reserve price is too low,” Lee noted.
Although mixed-use developments in Singapore remain sought-after, some commercial properties that were launched for en bloc sale last year failed to attract buyers. Among them are Verdun House and Jalan Besar Plaza.
Since the new property curbs were imposed on 6 July, Colliers International revealed that 35 en bloc tenders (including relaunches) have lapsed without a deal. Collectively worth close to $8.8 billion, these assets comprise two commercial properties, two mixed-use projects and 31 housing developments.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email email@example.com