More commercial developments trying for collective sale
More commercial developments are jumping onto the collective sale bandwagon even as the success rate for such deals pales in comparison with that for residential developments.
So far this year, there has been no commercial sites sold en bloc, with all 15 collective sale sites sold being residential developments.
However, the heady success of residential collective sales is giving commercial property owners optimism that they, too, can make handsome gains. For some of these commercial developments, it is even more urgent that they sell soon because of their depleting leases.
Collective sale brokers said the pricing for commercial sites and the location are two critical factors.
Mixed-use sites with a retail component are harder to sell, given the strata retail segment is struggling. In the case of residential-cum-commercial sites, the commercial component can blow the reserve price out of the realistic range, a broker said.
Those on sale include Singapore Shopping Centre in Clemenceau Avenue, which has 29 years left on its tenure.The reserve price for the retail-cum-office development near Dhoby Ghaut MRT station is expected to be around $250 million, according to its marketing agent Cushman & Wakefield.
Elsewhere in Tanjong Pagar, owners of freehold Realty Centre have also appointed Cushman & Wakefield as marketing agent.
The public tenders of ICB Shopping Centre, Jalan Besar Plaza and Chinatown Plaza have closed without a sale being concluded.
Owners at Goldhill Centre and Katong Shopping Centre, which houses offices and shops, have set their reserve prices at $425 million and $580 million respectively, said Ms Christina Sim, director of capital markets at Cushman & Wakefield.
Other commercial projects at varying stages of the collective sale process include People's Park Centre, People's Park Complex, Golden Mile Tower and Golden Mile Complex. - THE STRAITS TIMES
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