High Street Centre back on market, plans to lower reserve price to below S$700 million

Previous en bloc tender closed in January without bids meeting S$748 million reserve price

May 22, 2024

THE collective sale of High Street Centre has been relaunched in a fresh tender, after the previous attempt closed in January without any bids meeting the SS$748 million reserve price.

While the current reserve price remains the same, marketing agent Cushman & Wakefield said on Wednesday (May 22) that it is seeking an 80 per cent consensus among the building’s owners to lower the reserve price to below S$700 million.

This is the third time that the 99-year leasehold development located at One North Bridge Road has been put up for collective sale.

It was first put up for sale in June 2020 at a reserve price of S$800 million. The tender was relaunched in October 2023 at a S$748 million reserve price, 6.5 per cent lower than the previous attempt.

Christina Sim, Cushman & Wakefield’s senior director of capital markets, said: “While the market for residential properties is challenging considering the steep increases in Additional Buyer’s Stamp Duty announced on Apr 27, High Street Centre offers the only commercial opportunity that has the flexibility of incorporating a ‘hotel’ or ‘serviced apartment’ component within the development.”

The firm had earlier noted that the Urban Redevelopment Authority will support the development of at least 60 per cent of the site’s 466,085 square feet of gross floor area for commercial use.

Another 40 per cent may be allocated for the redevelopment of a hotel of no more than 450 keys, or for residential or serviced apartment use, it added.

The latest tender for High Street Centre will close on Jun 24, 2024.

https://www.businesstimes.com.sg/pro...w-s700-million