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Thread: Nod for FEO to buy six levels of AA Centre

  1. #1
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    Default Nod for FEO to buy six levels of AA Centre

    http://www.businesstimes.com.sg/arch...entre-20130111

    Published January 11, 2013

    Nod for FEO to buy six levels of AA Centre

    $61.8m sale to Far East Organization approved by AA Singapore members


    THE path has been cleared for Far East Organization to buy Automobile Association of Singapore's space on the first six levels of AA Centre in River Valley Road for $61.8 million after the deal was approved by AA Singapore members at an extraordinary general meeting on Wednesday night.

    The six levels add up to total strata area of 55,574 sq ft and will give the property giant ownership of 78.2 per cent of share value in the 14-storey freehold building and slightly more than half of the building's total strata area. This makes Far East key to any potential collective sale of the building.

    Colliers International brokered the deal, which is slated for completion in February 2014.

    On the seventh to 14th levels of the building are 24 apartments and four penthouses in the hands of individual owners. These units, which add up to 49,805 sq ft, were put on the market last August under a separate exercise handled by Land Empire. The indicative price tag of $100 million for these units reflects about $2,000 psf. These apartments and penthouses are still available for sale.

    AA Centre stands on 33,751 sq ft of land. Under Master Plan 2008, the site is zoned for residential use, with 2.8 plot ratio (ratio of maximum gross floor area to land area) and 10-storey maximum height. The 14-storey building's existing total gross floor area reflects a much higher plot ratio of about 3.78. Market watchers reckon Far East would be taking a long-term view on its acquisition of the AA Singapore's space.

    Next door, Far East owns a 70,637 sq ft freehold site which currently houses a sales gallery showcasing some of the group's projects.

    AA Singapore's space in AA Centre includes a reception area, a multi-purpose hall and a cafeteria on level one; office and clubhouse space including a jackpot room and a swimming pool on levels two to four; and 32 serviced apartments on levels five and six. The serviced apartments are vacant.

    The building has some 90 basement car park lots for common use, including by the residents of the apartments/penthouses on levels seven to 14.

  2. #2
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    Default AAS to sit on $100m cash pile after HQ site sale

    http://www.straitstimes.com/archive/...-sale-20130112

    AAS to sit on $100m cash pile after HQ site sale

    Published on Jan 12, 2013


    THE Automobile Association of Singapore (AAS) will soon be sitting on a cash pile of close to $100 million.

    The 83,000 members in the 105-year-old association have agreed to sell its headquarters building in River Valley Road for close to $62 million.

    The resolution was secured at an extraordinary general meeting on Wednesday evening when two-thirds of voting members present gave the nod for the sale.

    AAS chief executive Lee Wai Mun told The Straits Times yesterday that it currently has cash reserves in excess of $30 million.

    When the sale to property giant Far East Organization is completed by February next year, the AAS' cash hoard will rise to about $100 million.

    Asked what the association intends to do with the money, Mr Lee said: "We will continue to look at ways to enhance services for members."

    First of its priorities would be to source for an alternative to its River Valley site.

    He said it still has not found any and that it is possible the AAS will have two locations: one for its vehicle recovery business-cum-workshop and another for its administrative office-cum-clubhouse, which will include a jackpot room.

    The latter is likely to be in a more central location while the former can be elsewhere.

    "We have started sourcing for alternative locations but have not finalised our decision yet," MrLee added.

    The association now operates its vehicle recovery business out of No. 2 Kung Chong Road, near the car-showroom belt of Leng Kee-Alexandra roads. It bought the 20,000 sq ft property in 2003 for $9.3 million. Since then, it has leased out "excess space" to motor trader Supercars Concept.

    Meanwhile, Far East is keeping its plans for the 33,751 sq ft freehold plot it bought from AAS close to its chest. But observers said the property developer is likely to consign the plot - located in a prime residential district - to its land bank.

    Far East already owns a 70,637 sq ft freehold site next to the AAS site. It houses a sales gallery showcasing some of the group's projects.

    Together with its sister group, Hong Kong- based Sino Group, Far East has a land bank of about 80 million sq ft, predominantly in Singapore, Hong Kong, Taiwan and China.

    Should it want to redevelop the AAS site though, it would have to buy over 24 private apartments and four penthouses on the seventh to 14th levels of the building.

    These were put up for sale last August but no deal has been struck yet.

    CHRISTOPHER TAN

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