ABOUT 19,000 square feet (sq ft) of retail space on the fourth level of the freehold Orchard Towers is being sold for S$54.5 million.

The price works out to S$2,825 per square foot based on a total strata area of 19,289 sq ft.

Under a sale and purchase agreement inked about two weeks ago, the property is being bought by Cornerstone Heritage, whose shareholders include Yang Tuck Yoong and Daphne Yip. The couple are the founders and senior pastors at Cornerstone Community Church. The remaining shareholder, Timothy Chong, is also a pastor at the church.

Based on information on its website, the church has been located in The Odeon Katong, at 11 East Coast Road, since 1997; it owns some space in the building. The church also conducts services at a couple of Golden Village halls at the Bugis+ mall, owned by CapitaLand Integrated Commercial Trust.

In a note on the Cornerstone Community Church website elaborating on the acquisition of the space at Orchard Towers, Pastor Yang said that the church had been seeking additional space for several years to accommodate its expanding community. “Our congregation at Cornerstone Bugis is growing, and many attendees with children would benefit from a Cornerstone location closer to central Singapore,” he added.

A frequently asked questions section states: “We are currently discussing the possibility of moving (the) Bugis services to Orchard Towers, given that we will save on (the) Bugis rental.”

The section also mentions that the church will primarily fund the purchase of the Orchard Towers space using savings accumulated over the years. “To reduce pressure on our working capital, we may secure an external loan equivalent to one year’s expenditure.”

Low en bloc potential a good thing

Pastor Yang noted that the space presents a “permanent home in Orchard with low en bloc potential”; this would result in “more sustainable operations for our Bugis congregation” and the possibility of opening more service slots.

Another advantage of being in Orchard Towers is that it has ample car parking facilities.

According to earlier media reports, Orchard Towers’ owners had formed a collective sales committee in 2021.

In the following year, it recommended setting a reserve price of S$1.6 billion for an en bloc sale. However, in February 2023, it emerged that the requisite 80 per cent consent level from unit owners could not be obtained.

The development, which was completed in the early 1970s, spans two buildings, with retail and office space in the front tower along Orchard Road, and some commercial units and 58 private residential units in the rear tower along Claymore Road. There are 361 car parking spaces, based on an earlier media report.

The space being bought by the church is in the front block and comprises disco pub premises (originally converted from a 400-plus-seat cinema), and a stretch of retail units.

The seller is Singapore-incorporated Rubina Watch Company, held by the Sassoon family that once owned The Coffee Bean & Tea Leaf chain before selling it to a Jollibee Foods Corporation subsidiary in 2019.

Rubina Watch paid S$47.5 million in 2021 for the space, which it acquired from Singapore-incorporated CrazyHorse Disco Pub (not related to the Crazy Horse show from Paris).

In its heyday in the late 70s and the 80s, Orchard Towers’ mall was home to establishments such as art-house cinema Premier and high-end nightclub Top Ten. However, by the 2000s, Orchard Towers became known for the vice activities taking place in and around the building.

To manage the law and order situation at Orchard Towers, the Singapore Police Force had to step in by informing owners in 2022 that it would not grant or renew public entertainment licences for businesses operating in the building.

Will Cornerstone Community Church’s entry into the building be a catalyst for Orchard Towers’ gentrification?