Orchard Plaza explores avenues for collective sale

May 24, 2007

Orchard Plaza explores avenues for collective sale


THE ageing Orchard Plaza - once dubbed the most dismal building on Orchard Road - may become the next mall to head down the collective sale route.

Sources said owners of the strata-titled mall next to the Le Meridien Singapore hotel gave the thumbs up to explore sale opportunities at an extraordinary general meeting held about two weeks ago.

This led to a sales committee being formed last Saturday, which has already invited proposals from marketing agents, they added.

Although no indicative prices have been mooted, The Straits Times understands that a figure in the region of $500 million is being bandied about.

This would work out to just under $2,000 per sq ft per plot ratio (psf ppr) for the nine-storey mall, which has a gross floor area of about 260,000 sq ft.

But market watchers said they would not be surprised if the eventual asking prices were higher, at between $2,000 and $3,000 psf ppr.

This compares with the $1,455 psf ppr paid for the Somerset Central site across the road last August.

One unit owner at Orchard Plaza said the sharp rise in property prices since then has made it unlikely that the mall's owners would agree to the building being sold en bloc for anything below $2,000 psf ppr.

'They will probably try and ask for closer to $3,000 psf ppr,' he told The Straits Times.

Orchard Plaza has a mix of restaurants, massage parlours and KTV pubs. It was developed more than 20 years ago by Far East Organization, which is believed to be still holding on to about 30 per cent of the units.

Its first step towards going for a collective sale comes a week after reports that Orchard Towers, opposite Forum the Shopping Mall, is considering a collective sale at expected prices of about $1,800 psf ppr.

Two other collective sales were also announced yesterday.

Ruby Plaza and the adjoining Balestier Towers went on the market at minimum prices of $79 million and $60.3 million respectively.

This works out to at least $670 psf ppr for the combined properties, said Realtorhub Real Estate, which is marketing the buildings.

The have a combined site area of 69,481 sq ft and a gross floor area of 208,443 sq ft.

A buyer could potentially redevelop the properties into a hotel of at least 20 storeys or a block of medical suites, subject to the planning approval, said Realtorhub.

The owners of Paramount Hotel and Paramount Shopping Centre in Katong have also put the freehold property up for tender.

They hope to get more than $200 million for the site, which has a combined land area of about 102,710 sq ft and a gross floor area of 308,130 sq ft.

Outline approval has been obtained to convert the retail portion to hotel use, said Cushman & Wakefield, which is conducting the tender exercise.

The existing hotel has 229 rooms but can be expanded to accommodate 450 to 600 rooms.

The price works out to about $650 psf ppr, said Mr Donald Han, the managing director of Cushman & Wakefield.

Previous hotel site transactions have been done at about $500 psf ppr or more. But Mr Han said prices have moved up since then and Paramount should attract more interest, as freehold hotel properties are relatively rare.

FIONA CHAN

Orchard Plaza may be on collective sale

6 June


The 20-year-old Orchard Plaza may be put onto the collective sale market soon.

The owners of the aged malls on Orchard Road had reportedly convened an extraordinary general meeting (EOGM) to discuss the collective sale proposal and a sale committee is understood to have been formed to spearhead the sale.

The asking price is likely to be in the neighbourhood of $500 million. This would work out to be around $2,000 per sq ft per plot ratio (psf ppr).

The mall is nine-storey tall and has a gross floor area of about 260,000 sq ft. It has a tenant-mix of restaurants, massage parlours and KTV pubs.

Far East Organization, the original developer, is believed to be still holding on to about 30% of the units.

Last August, nearby Somerset Central was sold for $1,455 psf ppr. However, due to the soaring property prices, especially in Orchard Road area, not a single owner at Orchard Plaza would be willing to sell below $2,000 psf ppr. Shocked

Nearby Orchard Towers, is also on the collective sale market for an expected price of about $1,800 psf ppr.

Is this the building that Fire disco used to be? hehehehehe