The people who own Singapore’s People’s Park Center are on the brink of deciding as to whether they will reject or accept the reserve price of 1.3 billion dollars which was proposed for the sale of the property.
This is going to be made through an election or voting.
The said voting is going to take place on the so-called Extraordinary General Meeting, scheduled on the 23rd of October.
Market analysts say that 1.3 billion dollars happen to be the highest bid for a mixed-use property sale, which also happens as the highest bid in this cycle so far.
This specific reserve price projects about 41% premium above valuation.
Savills Singapore’s director and the property’s marketing agent, Mr. Philip Ng says that if fifty percent or a simple majority of the casted votes agrees with the said price, this will trigger them to come up with a task to start collecting names or signatures for the eighty percent mandate.
Supposing that the owners of the said property agree for the said reserve price, it is said that the owner of the car park becomes the highest beneficiary, given that the property is going to be sold according to the reserve price.
The car park owner will definitely get 55 million dollars.
On the other hand, owners of apartment will get about 1.83 million dollars up to 4.7 million dollars.
The shop owners will pocket 139 thousand dollars to 15.9 million dollars while the owners of offices will get 419 thousand dollars to 3.129 million dollars.
Property sales spokesperson Lee Chin Chee stated that the leasing period for the properties goes down in relation to time.
He expressed that owners should vote for the bid, taking in to consideration the fact that leasing period simply runs down. Otherwise, these owners will surely get bids that are lower than the present one.
Prior to this, Lee admonished owners to grab the chance in this specific cycle.
For any reason that the majority of voters (owners) agrees with the specified reserve price, all of them will continue to conduct another election through an apportion method in consonance to their preliminary attempt on collective sale.
However, there are observers who believe that getting the right number is not as easy as what others think.
This is due to the varied opinions of owners where some would think that the bid should be made in a much higher level.
There are also those that think that the price is agreeable yet the apportionment method is not as good as what others would think of.
In another hand, there are property owners who dispersed letters so as to convey their dissatisfaction regarding this matter.
There are also owners that expressed their contentment with the said bid. Lee stated that fireworks are expected on the day of the Extraordinary General Meeting or EOGM.
The People’s Park Center is found at No. 101 Upper Cross Street, in Singapore’s prime district one.
This district is also known as the country’s business district and is composed of Raffles Place, Marina Bay, Cecil and People’s Park. Prior to this reality, the en bloc site of PPC is going to be very much attractive to any investors and developers.
Basically, District I is highly known for its reputation being the city’s hub for financial interests and businesses.
Tourists and residents have a great deal of things and places to enjoy in this area. As for Singaporean cuisine, choices usually vary from fine dining to street foods.
Attractions in District I include Merlion Park Singapore, Marina Bay Sands, Central Business District, Carnivore, Yu Cuisine, Pita Pan, Verve Pizza Bar, Telok Ayer Market, 1-Attitude, Over Easy, Kiraku, O-An, The Clifford Pier, Kinki, Peace Center Food Court, Makansutra, etc.
This district also leads people to different destinations in Singapore through the abundance of transport services like train and bus stations which include Chinatown MRT, Outram MRT and Raffles Place MRT.
About People’s Park Center
This center is considered as an iconic landmark in Singapore. Here is where high-rise commercial and residential buildings are found.
This center was built in the 70s and now comes with a master plan of getting itself transformed into a commercial area. It is composed of a car park, 324 shops, 256 offices and 120 apartments.
The entire property has an area of 96,000 square feet with a gross floor area of 820,000 square feet. As of the moment, it is still leased for 51 years.
The center comes with a perfect location, rich culture and is considered as the most populous spot in Singapore.
It has a Chinese heritage that can be seen through the center’s abounding shops. It is such an excellent place for tourists and visitors who wish to look for souvenirs like handcraft items, clothing, etc.
Mr. Ng said that the PPC will be made as a mixed-use area. This means that developers can build both commercial and residential buildings.
This is possible with the Urban Redevelopment Authority’s approval. Moreover, SLA will also inspect the granting lease of the property. Today, the commercial sector happens to be more dazzling and vibrant compared to the residential sector.
At present, foreigners are not required to pay for commercial properties’ stamp duty. Additionally, loan to value limits are not also being changed.
Colliers International reported that mixed-use properties have become extremely popular from the time when their investment sales increased to 1.5 billion dollars which also represent 30.2 percent increase.
The sale actually originated from public land sales (for both commercial and residential use) which cost 1.2 billion dollars plus the sale of Singapore’s Chinatown Plaza which also costs 260 million dollars.