New Reporter
30-09-23, 14:17
Chinese billionaire’s Bright Ruby-linked unit bags Far East Shopping Centre for about S$910 million
Deal comes after Bright Ruby’s purchase of Collyer Quay building for S$1 billion last year, and former Grand Park Orchard hotel for S$1.15 billion in 2013
Sep 30, 2023
THE collective sale of Far East Shopping Centre has been awarded, subject to conditions, to a company linked to Bright Ruby Resources and Chinese businessman Du Shuanghua, The Business Times (BT) understands.
The offer from Glory Property Developments is said to be around S$910 million, a notch below the guide price of S$928 million for the 999-year leasehold property along Orchard Road.
The deal is subject to certain conditions, including approval from the Urban Redevelopment Authority (URA) for up to 20 per cent more gross floor area (GFA) under the government’s Strategic Development Incentive (SDI) scheme.
The tender award also requires approval from the Strata Titles Board as the collective sale had not obtained unanimous approval from owners, BT understands.
Based on the maximum buildable GFA of 290,574 sq ft under the SDI scheme, assuming full commercial usage and including a Land Betterment Charge, the S$928 million guide price worked out to S$3,421 per sq ft per plot ratio (psf ppr), marketing agent CBRE said earlier.
Bright Ruby Resources is a locally incorporated company controlled by Chinese billionaire Du Shuanghua, which in June 2022 paid S$1 billion in an all-cash deal for the 999-year leasehold Income At Raffles at 16 Collyer Quay. The Raffles Place property, which was sold at S$3,617 psf, has since been renamed Collyer Quay Centre.
Bright Ruby had earlier bought what was called the Grand Park Orchard hotel with its retail podium Knightsbridge in August 2013, for slightly over S$1.15 billion. The freehold property was sold by Park Hotel Group. It was rebranded as Pullman Singapore Orchard in 2021.
The SDI scheme was introduced in 2019 to encourage redevelopment of older buildings in strategic areas such as Orchard Road, the Central Business District (CBD) and Marina Centre, in line with the broader planning intentions to rejuvenate these areas.
The 36,014 square foot (sq ft) Far East Shopping Centre site, zoned for commercial use, currently has an existing GFA of about 242,145 sq ft, equivalent to a plot ratio of 6.72.
Under the SDI, the GFA may be increased by up to 20 per cent to about 290,574 sq ft, equivalent to a plot ratio of 8.06. This is on condition that the incoming buyer collaborates with owners of neighbouring properties to enhance the Orchard Road precinct.
According to URA guidelines, approval for the SDI is dependent on the specifics of each site, such as the urban and architectural design concepts, infrastructure capacity and environmental contributions to the surrounding areas.
The developer may be exempted from having to venture into an amalgamated redevelopment with adjacent sites. Exemptions may be granted, for instance, “if the redevelopment helps to plug critical gaps in the planned pedestrian networks for the precinct”; or “if the redevelopment of a single site is large enough on its own to achieve the desired transformational impact”.
Built in 1974, Far East Shopping Centre comprises a five-storey retail podium, a 10-storey office block and a two-storey basement. Around 30 per cent of the property’s share value is still owned by Far East Organization, which had developed it. In its vicinity are Bonvests Holdings’ Liat Towers and Wharf Estates Singapore’s Wheelock Place.
Far East Shopping Centre also stands next to a stretch of buildings owned by Ong Beng Seng’s Hotel Properties Ltd, which were bundled together in a redevelopment proposal approved by the URA earlier. These include the voco Orchard Singapore hotel, Forum The Shopping Mall and HPL House.
Together, the three sites total around 150,000 sq ft of freehold land.
Besides integrated redevelopment, the SDI scheme also proposes the implementation of direct underground pedestrian links from Orchard MRT stations, on both the North-South and Thomson-East Coast lines.
https://www.businesstimes.com.sg/property/chinese-billionaires-bright-ruby-linked-unit-bags-far-east-shopping-centre-about-s910
Deal comes after Bright Ruby’s purchase of Collyer Quay building for S$1 billion last year, and former Grand Park Orchard hotel for S$1.15 billion in 2013
Sep 30, 2023
THE collective sale of Far East Shopping Centre has been awarded, subject to conditions, to a company linked to Bright Ruby Resources and Chinese businessman Du Shuanghua, The Business Times (BT) understands.
The offer from Glory Property Developments is said to be around S$910 million, a notch below the guide price of S$928 million for the 999-year leasehold property along Orchard Road.
The deal is subject to certain conditions, including approval from the Urban Redevelopment Authority (URA) for up to 20 per cent more gross floor area (GFA) under the government’s Strategic Development Incentive (SDI) scheme.
The tender award also requires approval from the Strata Titles Board as the collective sale had not obtained unanimous approval from owners, BT understands.
Based on the maximum buildable GFA of 290,574 sq ft under the SDI scheme, assuming full commercial usage and including a Land Betterment Charge, the S$928 million guide price worked out to S$3,421 per sq ft per plot ratio (psf ppr), marketing agent CBRE said earlier.
Bright Ruby Resources is a locally incorporated company controlled by Chinese billionaire Du Shuanghua, which in June 2022 paid S$1 billion in an all-cash deal for the 999-year leasehold Income At Raffles at 16 Collyer Quay. The Raffles Place property, which was sold at S$3,617 psf, has since been renamed Collyer Quay Centre.
Bright Ruby had earlier bought what was called the Grand Park Orchard hotel with its retail podium Knightsbridge in August 2013, for slightly over S$1.15 billion. The freehold property was sold by Park Hotel Group. It was rebranded as Pullman Singapore Orchard in 2021.
The SDI scheme was introduced in 2019 to encourage redevelopment of older buildings in strategic areas such as Orchard Road, the Central Business District (CBD) and Marina Centre, in line with the broader planning intentions to rejuvenate these areas.
The 36,014 square foot (sq ft) Far East Shopping Centre site, zoned for commercial use, currently has an existing GFA of about 242,145 sq ft, equivalent to a plot ratio of 6.72.
Under the SDI, the GFA may be increased by up to 20 per cent to about 290,574 sq ft, equivalent to a plot ratio of 8.06. This is on condition that the incoming buyer collaborates with owners of neighbouring properties to enhance the Orchard Road precinct.
According to URA guidelines, approval for the SDI is dependent on the specifics of each site, such as the urban and architectural design concepts, infrastructure capacity and environmental contributions to the surrounding areas.
The developer may be exempted from having to venture into an amalgamated redevelopment with adjacent sites. Exemptions may be granted, for instance, “if the redevelopment helps to plug critical gaps in the planned pedestrian networks for the precinct”; or “if the redevelopment of a single site is large enough on its own to achieve the desired transformational impact”.
Built in 1974, Far East Shopping Centre comprises a five-storey retail podium, a 10-storey office block and a two-storey basement. Around 30 per cent of the property’s share value is still owned by Far East Organization, which had developed it. In its vicinity are Bonvests Holdings’ Liat Towers and Wharf Estates Singapore’s Wheelock Place.
Far East Shopping Centre also stands next to a stretch of buildings owned by Ong Beng Seng’s Hotel Properties Ltd, which were bundled together in a redevelopment proposal approved by the URA earlier. These include the voco Orchard Singapore hotel, Forum The Shopping Mall and HPL House.
Together, the three sites total around 150,000 sq ft of freehold land.
Besides integrated redevelopment, the SDI scheme also proposes the implementation of direct underground pedestrian links from Orchard MRT stations, on both the North-South and Thomson-East Coast lines.
https://www.businesstimes.com.sg/property/chinese-billionaires-bright-ruby-linked-unit-bags-far-east-shopping-centre-about-s910