$1.8 billion collective sale tender for People’s Park Centre closes without bids
$1.8 billion collective sale tender for People’s Park Centre closes without bids. Mixed-use building The People’s Park Centre in Chinatown has been put up for collective sale by public tender with a $1.8 billion reserve price, three years after an earlier attempt.
The reserve price equates to a land rate of $2,620 per square foot per plot ratio (psf ppr), according to ERA Realty Network, the site’s marketing company (July 6). The amount includes both the differential premium and the premium for upgrading the land tenure to a new 99-year lease. This exceeds the $1.35 billion target it had set for 2019.
The 1970-built commercial/residential complex has a gross floor space of roughly 821,017 square feet and is set on a 95,467 square foot parcel of land. It is categorized as commercial and has a gross plot ratio of 8.6 in the 2019 Urban Redevelopment Authority Master Plan. The complex, which is made up of a 13-story and a 30-story building, has a parking lot, 324 shops, 256 offices, and 120 apartments. There is no conservation designation for it.
80% of owners by share value and 84% of owners by strata area have signed the collective sale agreement, according to ERA. According to Mr. Koh Yam Khoon, the chairman of the committee, many owners were satisfied with how the collective sale began.
According to Mr. Sunny Wong, who is in charge of the ERA team overseeing the development’s collective sale, “the collective sale of People’s Park Centre will give a rare possibility for developers to build an iconic structure in the heart of a historical district in Singapore.” He stated, “A big development in the city area, adjacent to an MRT interchange, seldom enters the market.”
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