According to CBRE’s head of Singapore capital markets Michael Tay, Far East Shopping Centre is the only commercial site currently available for sale along Orchard Road.
He added that the site is “strategically positioned” to be part of the government’s plan, with the SDI scheme meant to “expedite the rejuvenation of Orchard Road”.
“We believe this opportunity will appeal to both local and foreign developers as the incoming buyer has the flexibility to create an iconic mixed-use development in the most prominent street in Singapore.”
Mr Tay added the SDI scheme “proposes implementation of direct underground pedestrian links from the existing Orchard MRT Station and Thomson-East Coast Line Orchard MRT Station to the new integrated development”.
“This will greatly enhance foot traffic to this part of Orchard Road. Developer(s) of the integrated development can also explore a combination of different land uses such as retail, hotel, office, MICE facilities and lifestyle uses under the said scheme.”
The S$928 million guide price is based on a maximum buildable GFA of 290,574 sq ft under the SDI scheme. Assuming full commercial usage, this works out to be S$3,421 sq ft per plot ratio, inclusive of Land Betterment Charge.
As the site is currently zoned for commercial use, the successful bidder will not have to pay any additional buyers’ stamp duty (ABSD).
Under the SDI scheme, the incoming buyer is also required to engage in a joint integrated redevelopment with its adjacent sites.
Far East Shopping Centre sits adjacent to a hotel, Voco Orchard, and Liat Towers, another shopping mall and mixed-commercial building. It is also known for Shashlik Restaurant, which serves Russian cuisine with a Hainanese spin.
The public tender for the site will close on Sep 20 at 3pm.