Far East Shopping Centre up for collective sale with S$928 million guide price

Citi Commercial Pte Ltd

FAR East Shopping Centre is up for en bloc sale with a S$928 million guide price, marketing agent CBRE said on Monday (Jul 24).

This translates to a land rate of S$3,421 per square foot per plot ratio, including a land betterment charge based on a maximum building gross floor area (GFA) of 290,574 square feet (sq ft) allowable, if the buyer takes advantage of the Urban Redevelopment Authority’s strategic development incentive (SDI) scheme.

Under the SDI scheme, buyers can extend the GFA of a redeveloped building by a maximum of 20 per cent, on condition that they engage in a joint integrated redevelopment with adjacent sites. Assuming full commercial usage, the land development charge payable will be S$66 million, based on March 2023 rates, CBRE told The Business Times.

Located at 545 Orchard Road, the 999-year leasehold Far East Shopping Centre sits on a 36,014 sq ft site zoned for commercial use. It has an allowable gross plot ratio of 4.9, and a GFA of 242,145 sq ft. The building was developed by Far East Organization, which is said to still own over 30 per cent of the property’s share value.

Far East Shopping Centre stands next to the voco Orchard Singapore hotel, which sits on a plot included in a development proposal sent to URA earlier. The proposal involved land parcels housing Forum The Shopping Mall, the voco and HPL House. All three parcels are owned by Ong Beng Seng’s Hotel Properties Limited (HPL).

Together, the three sites total roughly 150,000 sq ft of freehold land. Watchers are expecting HPL to integrate hotel and retail components into a massive luxury mixed project in the area.

Also close to Far East Shopping Centre are Liat Towers, owned by Bonvests Holdings, and Wheelock Place, held by Wharf Estates Singapore.

In addition to joint redevelopment, the SDI scheme proposes implementing direct underground pedestrian links from the Orchard MRT stations on both the North-South Line and Thomson-East Coast Line. This is to boost foot traffic in this part of Orchard Road, said CBRE head of Singapore capital markets Michael Tay.

He said developers can also explore a combination of different land uses under the scheme, including retail, hotel, office, Mice (meetings, incentives, conventions and exhibitions) facilities and lifestyle uses.

The collective sale tender for Far East Shopping Centre closes on Sep 20.

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