Business

Tanglin Shopping Centre makes fourth collective sale bid at $828 million

SINGAPORE – Tanglin Shopping Centre, one of Orchard Road’s oldest retail landmarks, is making its fourth collective sale attempt at $828 million.

The guide price works out to $2,642 per square foot per plot ratio (psf ppr) based on the gross floor area (GFA) of 313,435 sq ft, and assuming full commercial usage.

According to marketing agent Savills, the 80 per cent mandate from its owners was secured in November, and the sale by public tender will be launched on Tuesday (Dec 14).

City Developments (CDL) hotel arm Millennium & Copthorne Hotels owns more than 34 per cent of Tanglin Shopping Centre, or 85 strata-titled lots. CDL declined comment when contacted by The Straits Times on Monday.

The site’s reserve price is $785 million, according to The Business Times.

Its previous attempt in 2011 had a reserve price of $1.25 billion, which was not met, and its second and third attempts did not reach the public tender stage.

Tanglin Shopping Centre is a 12-storey complex with two basement levels and an annex eight-storey carpark.

The development has 364 retail and office units. Its main complex was completed in the 1970s, while the office tower extension was completed in early 1980s.

Savills noted that developers will have multiple development options ranging from office, luxury retail, residential and hotel.

The 68,512 sq ft freehold site is zoned commercial, with 60 per cent of the total GFA for commercial use and the remaining 40 per cent for residential and/or hotel uses.

“The commercial zoning means there is no additional buyers’ stamp duty payable by the successful bidder,” said Mr Jeremy Lake, managing director for investment sales and capital markets at Savills.

He added: “Currently the only commercial site available in Orchard, Tanglin Shopping Centre is a compelling opportunity for multiple development options.”

Located next to St Regis Residences, Boulevard 88 and near Four Seasons Singapore, the site’s future development is expected to attract international travellers.

Nearby hospitality projects that are opening next year include the Artyzen Cuscaden and The Singapore Edition, a luxury boutique hotel redeveloped on the former Boulevard Hotel site.

Mr Galven Tan, deputy managing director for investment sales and capital markets at Savills, said: “Being a freehold commercial site, Tanglin Shopping Centre is a unique opportunity for local and international developers. The buyer will have the flexibility to curate an iconic mixed-used development in the most prime street in Singapore, and overlooking Nassim Road, Singapore’s most prestigious residential address.”

The tender closes on Feb 22 next year, at 3pm.

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