Realty Centre sold en bloc at $148 million, $17 million below the reserve price of $165 million.
Realty Centre, located in the core central region submarket of Tanjong Pagar has been sold enbloc for $148 million. Brokered by Property Consultants Cushman & Wakefield (C&W) , this is the first full commercial collective sale site concluded this year.
Realty Centre sold en bloc to Chinese investment holding company
C&W said the buyer is The Place Holdings Limited, a Chinese investment holding company backed by the key management team of The Place Investment Group, a multi billion PRC conglomerate renowned for its extensive businesses in tourism, media, property management, bio-medical technology investments and international trade.
Realty Centre is a freehold 12-storey office building comprising 3 retail units on the ground floor and 33 office units in the upper floors. It has a total site area of 11,000 sqft and a possible height of 35 storeys. The existing zoning of the site is ‘Commercial’, plot ratio 5.6.
Realty Centre is primarily used for Commercial/Office rental and sale and is close to Tanjong Pagar MRT station and Outram Park MRT station. It is also within 5 minutes walk away from the upcoming Prince Edward MRT Station on the Circle Line, which is due to be completed by 2025. It is near to several bus stops located at Anson Road, Apex Towers, Tanjong Pagar Road, The Amara, Tanjong Pagar Road, Opp IBM Towers and Tanjong Pagar Road, Tanjong Pagar Plaza.
Realty Centre is near to several eateries located at nearby buildings such as Tanjong Pagar Complex, Springleaf Tower, Tanjong Pagar Plaza and Icon Village.
Realty Centre which is accessible via Enggor Street and Bernam Street, is within reasonable distance to Shop N Save, Cold Storage and Sheng Siong Supermarkets. It is also close to Amara Shopping Centre, Icon Village, Tanjong Pagar Plaza, International Plaza, Pearls Centre, Chinatown Complex, China Square Central and People’s Park Complex for an array of amenities such as grocery and retail shopping, banks and more.
Realty Centre sold en bloc is expected to benefit from the CBD Incentive Scheme
However, with the announcement of the CBD Incentive Scheme for draft Masterplan 2019, Realty Centre which falls into the ‘Anson’ precinct is expected to enjoy bonus plot ratios of between 25% to 30% if there were to be a change of use to either Hotel (+25%), Residential and Commercial (+25%) or Residential with Commercial on 1st Storey (+30%). The property is strategically located within walking distance to the Tanjong Pagar MRT Station (East/West Line) and the future Prince Edward Station (Circle Line).
According to Ms Christina Sim, Director of Capital Markets at Cushman & Wakefield, “Realty Centre is a versatile site with the possibility of keeping it as a full Commercial building or having it re-zoned to Residential or Hotel. It is also located on the fringe of a location which will be undergoing massive urban rejuvenation and transformation. The ‘Greater Southern Waterfront’ will be the new extension of the Central Core and is 3 times the size of Marina Bay.”
Realty Centre sold en bloc to Chinese investment holding company is subject to the Strata Titles Board’s approval.
En Bloc Sales Process Singapore – A Definitive Step-by-step Guide
Paul Ho, chief mortgage officer at iCompareLoan, said that the Realty Centre buy is a good choice. “The buyers will stand to benefot from the planned relocation of Singapore’s container ports to Tuas,” he said. The move is expected to free up some 1,000 hectares of prime waterfront land, making Tanjong Pagar a colourful masterpiece showcasing the best of Singapore.
With the winding down of the success of residential en bloc sales, commercial properties are trying to join in the bandwagon. Many commercial en bloc sale attempts fail because the asking prices are often too high. Two critical factors affecting the success of commercial sites going en bloc are pricing and location. Older commercial buildings especially, may see a need to catch the current wave as an exit strategy as their rental yields come under pressure due to competition from newer commercial buildings.
The biggest gainers following the new property cooling measures is likely be owners of strata portfolio of offices and shophouses approved for commercial use. The property cooling measures affected almost all categories of buyers and is predicted to achieve its intended objectives of cooling demand and moderating price growth.
One report said investors looking for alternatives to park their money in the wake of property cooling measures, would divert their attention to the strata office and shophouse markets as they are not subjected to this round of purchase or sales restrictions/encumbrances.
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