About Far East Shopping Centre collective sales

Far East Shopping Centre

Chinese tycoon Du Shuanghua, known for his investments in prime real estate around the world, has made a significant acquisition in Singapore. Through his investment vehicle, Glory Property Development, which falls under Bright Ruby Resources, his Singapore-based mining and resources company enbloc Far East Shopping Centre for approximately $908 million. This landmark deal, which equates to around $3,350 per square foot per plot ratio (psf ppr), is set to transform the real estate landscape in Singapore.

Michael Tay, the head of Singapore capital markets at CBRE, the marketing agent for Far East Shopping Centre, played a pivotal role in facilitating this transaction. This acquisition marks Du Shuanghua’s continued interest in Singapore’s real estate market. Last year, another investment vehicle of Bright Ruby Resources, Ever Glory, acquired Income@Raffles, a 37-storey Grade-A office building, for just over $1 billion.

Bright Ruby Resources’ investment portfolio extends beyond Singapore, with notable properties in major global cities such as Paris, Sydney, and Tokyo. This extensive international experience positions Du Shuanghua as a valuable player in the rejuvenation of Orchard Road.

Bright Ruby Resources has demonstrated its commitment to enhancing prime assets in major cities, as seen with the successful transformation of the former Grand Park Orchard into the Pullman Singapore Orchard. The former Knightsbridge retail space, once occupied by Abercrombie & Fitch, has also been reimagined, housing Singapore’s largest Adidas store and other prestigious brands like Apple, Rolex, The Hour Glass, and Ritual Gym.

 

 

Former Far East Shopping Centre Location

Far East Shopping Centre’s strategic location along Orchard Road, with a 75-meter frontage, places it in the heart of prime District 9. The property boasts a 999-year lease dating back to 1871 and occupies a 36,014 square foot site. Under the Strategic Development Incentive (SDI) scheme, the potential gross floor area is estimated at 290,574 square feet.

 

Potential of the Site

With a forward-looking approach, Du Shuanghua’s Glory Property Development is expected to reposition Far East Shopping Centre into a versatile commercial offering, integrating elements of retail, hospitality, office, and residential spaces. The Urban Redevelopment Authority (URA) has identified this property, along with five others on Orchard Road, for redevelopment into an exciting new destination, paving the way for a vibrant future for this prime district.

The rejuvenation of Orchard Road is a significant initiative, backed by the SDI Scheme introduced by URA in April 2021. This scheme incentivizes property owners to collaborate on redevelopment projects that create new destinations. Participating owners can enjoy a 20% bonus gross floor area (GFA), along with increased flexibility in land use and building height. Additionally, the planned direct underground walkway from Orchard MRT Station is expected to significantly increase footfall in this area.

Far East Shopping Centre’s record-breaking price of approximately $3,350 psf ppr has surpassed the former enbloc record at Ming Arcade, signifying the growing interest and potential in Singapore’s real estate market. This exciting development aligns with the ongoing rejuvenation of Orchard Road, heralding a promising future for this iconic district