Ming Arcade Enbloc to Royal Group for $172m

About Ming Arcade Collective Sales

 

Ming Arcade, that housed the theater disco bar The Rainbow Lounge and was founded by Singapore pioneer Goh Poh Seng, was sold to the property investment company Royal Group through collective sale on Thursday for $172 million.

At $3,125 per square foot per plot ratio (psf ppr), this purchase sets a new standard, surpassing the $2,910 psf ppr set in 2018 when a subsidiary of Shun Tak Holdings purchased $375.5 million for freehold Park House on Orchard Boulevard.

Several offers were submitted, according to Savills Singapore, the marketing agency for Ming Arcade. Mr. Jeremy Lake, Savills’ managing director for investment sales and capital markets, remarked that the price at which the transaction was completed was 34% above the reserve price and 14.8% higher than the price at which Savills brokered the sale of Tanglin Shopping Centre in February of this year for $868 million, or $2,769 psf ppr.

Ming Arcade, a wholly owned subsidiary of People’s Park Development, was responsible for the construction of the seven-story, 88-unit freehold commercial complex at the corner of Cuscaden Road and Orchard Road.

Mr. Lake said the properties varied in size from 13 square meters to 620 square meters, and that the owners might expect between $750,000 and $30 million for each.

 

Ming Arcade Location

Ming Arcade is located at 21 Cuscaden Road, in the Heart of the Orchard Shopping Belt with numerous shopping malls nearby such as Tanglin Shopping Centre, Forum Shopping Mall, Delfi Orchard, Orchard Ion, Far East Shopping Centre, Ion Orchard etc.

Nearby MRT Stations include Orchard MRT and Orchard Boulevard MRT Station.

 

Potential of the Site

Royal Group is considering a number of strategies for reusing the land. According to Royal Group chairman and real estate tycoon Asok Kumar Hiranandani, who spoke with The Straits Times, the location is “ideal for commercial development, given that two new hotels are going up – Artyzen Singapore and The Singapore Edition,” which will bring more people to the area.

The plot ratio for the “commercial” designated 12,132 square foot property is 4.54, which is based on the current 55,046 square foot gross floor space. It may reach a maximum height of twenty stories and contains three levels of underground parking.

Savills Singapore, a prominent real estate advisory firm, has unveiled an intriguing opportunity for potential purchasers. Alongside the ownership of the 62-luxury-villa Raffles Sentosa Resort & Spa and the sophisticated Sofitel Singapore Sentosa Resort & Spa, there lies the prospect of shaping the future of this property. Buyers have a strategic choice: they can either engage in an asset improvement program to enhance the existing structures or embark on an ambitious journey to transform the property into a high-end mixed-use marvel.

The vision of a grand mixed-use project encompasses a constellation of opulent elements, including a prestigious 5-star hotel that promises unrivaled luxury, a collection of high-end boutiques to entice discerning shoppers, premium office spaces designed for business excellence, and an array of high-end apartments tailored for exclusive living.

An added incentive to this remarkable opportunity is the exemption from further stamp duty on purchases. This financial advantage paves the way for investors and developers to explore their creative visions without the additional burden of taxation, fostering an environment conducive to innovation and growth.

As the real estate landscape evolves and adapts to changing demands, this prospect extends a canvas of possibilities for astute investors. With Savills Singapore’s insights and expertise, potential purchasers can not only acquire esteemed properties but also shape them into iconic landmarks that align with modern aspirations. Whether through enhancing the existing or pioneering a new era of luxury and functionality, this opportunity marks a pivotal crossroads in the world of real estate.

Former Ming Arcade co-chairmen Asok Kumar and Bobby Hiranandani stated in a statement, “Ming Arcade used to be an urban and dynamic lifestyle center back in the 1980s, and we are happy and excited to commence on the restoration of this enclave of Orchard Road district.”

The Raffles Sentosa Resort & Spa, with its 62 exquisite villas, and the upmarket Sofitel Singapore Sentosa Resort & Spa, both owned by Royal Group, are ready to reinvent hospitality. The upcoming launch of Raffles Sentosa Resort & Spa, which will join the already renowned Sofitel Singapore Sentosa Resort & Spa, demonstrates Royal Group’s dedication to providing extraordinary experiences. The initial 2022 launch was postponed due to the pandemic, demonstrating the industry’s endurance in the face of adversity. These properties demonstrate Royal Group’s unwavering commitment to create magnificent havens in the midst of change.

 

Former Ming Arcade Showflat Registration of Interest

---