Tanglin Shopping Centre was sold freehold for S$868 million, or S$2,769 per square foot per plot ratio (psf ppr) assuming full commercial use.
According to Savills Singapore, the sole marketing agency for Tanglin Shopping Centre, the buyer is Pacific Eagle Real Estate (PER), a Singapore-based real estate investor and developer privately controlled by the Tanoto family (Feb 23). The agreement is subject to the approval of the Strata Titles Board.
In a fourth effort at a collective sale, the selling price for the mixed retail and office property was around 10% more than the reserve price.
Pacific Eagle Real Estate had previously purchased Chinatown Plaza at 34 Craig Road en bloc, which is currently being transformed into Mondrian Singapore Duxton, a premium lifestyle hotel that will blend historic architecture from Singapore’s centuries-old shophouses with new, contemporary elements. A building along Duke’s Road, in the Bukit Timah Road neighborhood near the Singapore Botanic Gardens, was purchased more recently and offers significant redevelopment possibilities.
Sun You Ning, director of Pacific Eagle Real Estate, said: “Tanglin Shopping Centre, located close to the St Regis Hotel in the Orchard Road enclave, is one of Singapore’s first retail monuments. Pacific Eagle Real Estate is ecstatic to have the chance to build an iconic development worthy of the property’s history and location on one of our island’s most vital thoroughfares.”
The bidding for the collective sale of Tanglin Shopping Centre concluded on February 22 and was believed to have received five proposals, including from Far East Organization and Perennial Holdings.
The mainboard-listed City Developments Ltd (CDL) holds roughly 35% of the share value and almost 60% of the strata area in Tanglin Shopping Centre via an indirect fully-owned subsidiary of its privatised hotel business Millennium & Copthorne Hotels. According to BT, the CDL did not submit a proposal.
Under the Urban Redevelopment Authority’s 2019 Master Plan, the 68,512 sq ft property is designated commercial, with a maximum gross plot ratio of 4.2 and a height limit of 20 stories.
Tanglin Shopping Centre currently has a certified GFA and development baseline of about 313,435 sq ft (with plot ratio of 4.57). The Orchard Boulevard and Orchard MRT stations are nearby.
Tanglin Shopping Centre is a 12-story commercial building with two basement levels and an annex eight-story carpark with a frontage of around 105 meters along Tanglin Road and a secondary frontage on Cuscaden Road. Retail and office apartments are positioned from basement 2 to the 6th floor of the podium building in the main complex, while office spaces are located from the 7th to the 12th storeys of the tower block. Parking spaces are provided in the main complex’s basements 1 and 2 as well as the annex’s 8-story carpark structure. The main complex was constructed in two phases: the main complex in the 1970s and the office tower addition in the early 1980s. There are 364 apartments in the complex.
Savills Singapore’s managing director of investment sales and capital markets, Jeremy Lake, said: “Tanglin Shopping Centre’s tender was hotly fought. The site’s main selling point is that it is a freehold commercial property, allowing owners to choose from a variety of development alternatives.
Galven Tan, Savills’ deputy managing director of investment sales and capital markets, described the situation as follows: “Tanglin Shopping Centre’s fourth attempt at a collective sale has been successful, and Savills is pleased to have helped the owners. Savills’ marketing effort resulted in a competitive bidding process that culminated in a price that is 10% more than the reserve price.”
Tanglin Shopping Centre’s owners are represented by Legal Solutions LLC’s specialty property team, which is overseen by directors Patrick Ee and Christopher Yong. The purchasers of Tanglin Shopping Centre were represented by Dentons Rodyk & Davidson LLP in the collective transaction.
“The Tanoto family has been founding and managing enterprises that generate natural fibers, edible oils, green packaging, and natural gas for over 50 years via the RGE network of firms. Today, the company employs 60,000 people all around the globe “Savills has been added to the mix.
Tanglin Shopping Centre
Tanglin Shopping Centre was sold freehold for S$868 million, or S$2,769 per square foot per plot ratio (psf ppr) assuming full commercial use.
Product SKU: Tanglin Shopping Centre
Product Currency: SGD
Product Price: 868000000
Product In-Stock: InStock
