SINGAPORE: A “high quantum amount of S$1.8 billion” was a possible contributing factor for the lack of bids in the collective sale tender of People’s Park Centre, said real estate agency ERA Realty Network on Friday (Aug 19).
ERA had put up People’s Park Centre in Chinatown for collective sale at a reserve price of S$1.8 billion in July.
The tender for People’s Park Centre closed on Aug 18, 3pm, without any bids.
In response to queries from CNA, ERA said the “high quantum amount” was a possible contributing factor. They said that any joint offer will be more complex and may need more time, adding that there have been “no collective sale (of) over S$1 billion since 2007”.
When asked if the reserve price was too steep for potential investors, ERA said that “although the quantum is a record for the collective sale in Singapore, the land price is still feasible in current buoyant market especially the rekindled interest for commercial land.”
“In the previous collective sale attempt in 2019 at S$1.5 billion, People’s Park Centre was not able to get the required 80 per cent mandate from the subsidiary proprietors,” said ERA adding that the “owners’ sentiments and perceived value of the place are strong”.
The 99-year leasehold mixed-use commercial-and-residential development comprises 324 retail units, 256 office units, 120 residential units and a car park.
ERA said in July that the reserve price translates into S$2,620 per square foot per plot ratio, including the differential premium and the premium to top up the land tenure to a fresh 99-year lease.
The collective sale obtained 84 per cent of the owners’ signatures by strata area, and 80 per cent by share value, said ERA.
The agency pointed out that with the sales of Tanglin Shopping Centre, Golden Mile Complex and Peace Centre, “People’s Park Centre poses an attractive opportunity to own a landmark piece of land”.