Published January 26, 2011

CDL moves in on Tanglin Shopping Centre
Marine Point being sold en bloc for about $1,000 psf ppr

(SINGAPORE) The tender for Tanglin Shopping Centre's collective sale closed yesterday and is understood to have drawn at least one submission - from City Developments Limited (CDL).

The reserve price for the en bloc sale is said to be $1.25 billion, working out to a whopping unit land price of about $4,000 per square foot of potential gross floor area, assuming the freehold site is redeveloped. Market watchers find it hard to believe that CDL would be prepared to pay such a price, suggesting some conditions could have been attached to its bid.

CDL's London-listed hotel unit Millennium & Copthorne Hotels, through its wholly-owned unit King's Tanglin Shopping Pte Ltd, owns 85 strata retail and office units as well as all 325 carpark lots in the development, reflecting more than 30 per cent interest in Tanglin Shopping Centre's total strata area, based on earlier reports. The carpark lots are in the basement as well as in a rear multi-storey building.

M&C revealed in June last year that it had signed the Collective Sale Agreement for the sale of its strata-titled interest in the complex.

When contacted yesterday evening, Jean Goh, senior marketing director of ERA Realty Network, the marketing agent for Tanglin Shopping Centre's collective sale, said: 'We cannot comment at this point in time as we are still in the midst of negotiation.'

Based on Tanglin Shopping Centre's existing strata area of about 380,000 sq ft (comprising shops, offices, medical suites and carparking space), the $1.25 billion reserve price works out to about $3,300 per square foot.

Tanglin Shopping Centre has a freehold land area of about 68,512 sq ft. It is zoned for commercial use with a 4.2+ plot ratio under Master Plan 2008. ERA has previously said the property has potential for a mixed development comprising residential and retail units or commercial office cum retail and/or a hotel annex.

Assuming the authorities allow a new commercial development on the site built up to the existing gross floor area (GFA) of 313,437 sq ft with no development charge (DC) payable, the $1.25 billion reserve price would work out to $3,988 per square foot per plot ratio (psf ppr).

However, a DC may be payable for a mixed development scheme that includes a residential component, sources suggest.

The building's existing GFA slightly exceeds the maximum 287,750 sq ft allowed for the site under Master Plan 2008.

Tanglin Shopping Centre currently consists of 363 units of retail, office and medical units, plus the 325 carpark lots in the basement and eight-level multistorey carpark.

Market watchers say that the interest by CDL, which is part of Singapore's Hong Leong Group, in the property is expected, given the group's stronghold in the area. Besides its stake in Tanglin Shopping Centre, the group also has stakes in St Regis Singapore next door, Orchard Hotel and Palais Renaissance.

Separately, BT has learned that a collective sale deal for Marine Point at Marine Parade Road could take place soon. The price of the 51,185 sq ft freehold site is said to be about $95 million, or slightly below $1,000 psf ppr inclusive of DC. Selangor Dredging has been tipped as the potential buyer. Marine Point has a 2.1 plot ratio, which means it can be built into a new project with up to 107,489 sq ft GFA

Source: www.businesstimes.com.sg

Published December 9, 2010


Many properties beckon buyers
They include PoMo, Tanglin Shopping Centre, bank branch and petrol stations


By EMILYN YAP

THINGS may be slowing down as the year comes to a close but activity in the property market remains vibrant with a number of assets - PoMo, Tanglin Shopping Centre, petrol stations and even a bank branch - up for sale.

Lend Lease and a private fund are selling PoMo, formerly known as Paradiz Centre, through an expression of interest exercise.

The 99-year leasehold office-retail building is at 1 Selegie Road, near educational institutions such as Singapore Management University and the Nanyang Academy of Fine Arts. It is 10 storeys high, has a gross floor area (GFA) of 234,996 square feet and a net lettable area (NLA) of 182,060 square feet.

Jones Lang LaSalle (JLL) is handling the sale of PoMo, and expressions of interest are due on Jan 28.

Going by recent transactions nearby, PoMo could fetch around $255 million or $1,400 per square foot (psf) of NLA, said the firm's national director of investments Anthony Barr. For instance, IOI Plaza at the corner of Middle Road and Prinsep Street changed hands for $139 million or about $1,381 psf of NLA last month.

Mr Barr expects to see 'strong interest' in PoMo, 'given its ideal location, relevant consumer demographic, recent asset enhancement works and current tenant demand for quality retail and commercial space in that area'.

Lend Lease and the fund had bought Paradiz Centre jointly for $138 million in 2006. They subsequently enhanced and re-positioned the complex, bringing in more food and beverage outlets and retail stores.

JLL is also managing the sale of two petrol stations at Jalan Ahmad Ibrahim and a three-storey building in Boon Lay on behalf of JTC Corporation.

JLL will put the properties up for auction next Wednesday. The petrol stations have a 20-year lease while the building - currently used as a branch by United Overseas Bank - has a 10-year lease.

Over in the Orchard area, Tanglin Shopping Centre has been officially put up for sale via a tender. The reserve price is $1.25 billion, which works out to around $4,021 psf of potential GFA.

The freehold complex has a site area of around 68,512 square feet and a plot ratio of 4.2+. There are now 363 retail, office and medical units there.

BT reported last month that owners controlling at least 80 per cent of the share value and strata area of Tanglin Shopping Centre had agreed to the collective sale.

ERA Realty Network is the agent for the sale and the tender closes on Jan 25. The winning bidder can re-develop the shopping centre into a residential-retail building, or a commercial-retail block with a hotel annex, it said.

Separately, Knight Frank is marketing units in A'Posh BizHub, a 60-year leasehold light industrial building at Yishun Avenue 6 developed by OKH Holdings. According to Knight Frank director of business space (industrial) Lim Kien Kim, each unit has an average size of 1,000 square feet and is priced from $300,000.


Source: www.businesstimes.com.sg

Published November 5, 2010

OWNERS controlling at least 80 per cent of the share values and strata area of the freehold Tanglin Shopping Centre have given consent for its collective sale.

The tender for the sale is slated to be launched around the end of this month by marketing agent ERA Realty Network. With a reserve price of $1.25 billion, it will be the biggest collective sale launched for a commercial building in the Orchard/Tanglin area.

The reserve price works out to about $4,021 per sq ft of potential gross floor area - a record price if it is achieved. The assumption in the unit land price calculation is that no development charge is payable and the new owner will be able to build up to the property's existing gross floor area of 310,800 sq ft (pending verification by Urban Redevelopment Authority) - even though this slightly exceeds the maximum 287,750 sq ft allowed for the site under Master Plan 2008.

Millennium & Copthorne Hotels (M&C), the London-listed hotel arm of City Developments Ltd (CDL), disclosed in June that it had signed the collective sale agreement for Tanglin Shopping Centre. M&C holds its stake in the shopping and office complex through its wholly owned subsidiary King's Tanglin Shopping Pte Ltd. The company owns 85 freehold strata retail/office units and 325 car parking lots that have been held as a long-term investment since 1981. This works out to about 34 per cent interest in the total strata area.

Tanglin Shopping Centre has a freehold land area of 68,512 sq ft. Under Master Plan 2008, the site is zoned for commercial use with a 4.2 + plot ratio - the ratio of maximum potential gross floor area to land area - and a maximum height of 20 storeys.

'This will be a very attractive site for redevelopment into a super luxury residential project with a commercial or hotel tower, or residential units with a retail podium,' ERA said. 'Some developers are already eyeing the property in view of its prime location.'

While market watchers agree the site is prime, they say it remains to be seen whether developers will be willing to pay the steep reserve price.

The 12-storey centre comprises retail space from basement two to level six, including about two levels of medical suites; offices from levels seven to 12; and parking lots in the basement and a rear multi-storey block.


Source: http://www.businesstimes.com.sg