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.