SINGAPORE: Katong Shopping Centre has made another attempt at collective sale, at an indicative price of S$638 million (US$473 million), said real estate firm Edmund Tie in a news release on Monday (Jul 10).
The freehold property in District 15 is located on a corner land plot of 86,924 sq ft, facing both Mountbatten Road and Haig Road.
It was previously put up for collective sale in April for the same price. At the time, Edmund Tie said that was the third en bloc attempt by Katong Shopping Centre.
On the previous two occasions in 2016 and 2017 – both handled by Cushman & Wakefield – the reserve price was set at S$630 million.
The development currently comprises a seven-storey podium block and a five-storey annex block, accommodating a total of 425 strata shop and office units as well as a privately held carpark. The total gross floor area of the development is approximately 280,000 sq ft, reflecting a gross plot ratio of 3.223.
Under Master Plan 2019, Katong Shopping Centre is zoned for commercial and residential use at a gross plot ratio 3.0. The site can be redeveloped into a landmark integrated development at its existing plot ratio of 3.223, with the option of converting the residential component into serviced apartments, subject to authorities’ approval.
The indicative price of S$638 million works out to S$2,277 per sq ft per plot ratio (psf ppr) based on its existing gross floor area.
Edmund Tie’s head of investment advisory Swee Shou Fern said: “Katong Shopping Centre offers investors a rarely available sizeable site with the coveted freehold tenure for a mixed-use development; what’s more in the popular and well-established East Coast vicinity.
Based on an average unit size of 100 sq m (or approximately 1,076 sq ft), the new development can accommodate about 156 residential apartments, she said. The retail component can feature up to approximately 112,000 sq ft in gross floor area.