New Year 2020 Blockbuster Sale?
A second attempt for collective sale for The Arcade is being made by the owners and they are currently asking for a price of S$780 million.
In 2014 they had made a similar bid with a reserve price of S$868 million but now they have lowered their rate by 10%.
According to the marketing agents, Colliers International handling the sale who made the announcements recently, the current quotation means that the land will be valued for per plot ratio at S$2,833 psf ppr.
There are 127 retail units and offices at The Arcade which means that each owner may receive anything between S$700,000 and S$29.9 million, depending on the size of their holding and on the successful completion of the sale.
One of the reasons why The Arcade is being sold is because as a 40-year-old commercial property it is old and its facilities are beyond the current times, said the chairman of property’s Collective Sale Committee, Moeez Hatim Nakhoda.
Mr. Nakhoda added that Raffles Place is fast evolving and many other neighbouring properties are also being revamped and it is time for The Arcade to see a complete facelift.
There are 20 levels of office space in The Arcade along with a 2035 sq. m retail property. It enjoys 999 years of lease tenure which had begun in 1826.
As per the recommendations mentioned in the Draft Master Plan 2019, this property has been marked as “commercial” and has a GPR (gross plot ratio) of 15.
Colliers International, the marketing agents overlooking the sale said that it can be transformed into a 50-storey skyscraper offering panoramic views of Downtown skyline as well as Marina Bay.
It enjoys dual frontage and faces Collyer Quay and Raffles Green and is conveniently accessible from the Pan Island Expressway, Marina Central Expressway and many other expressways. The Raffles Place MRT interchange station is also close by.
The MD of Colliers International, Tang Wei Leng said that this collective sale with act as a golden opportunity for developers to reclaim a historic property right at the heart of Singapore’s commercial district in the ever changing and evolving Raffles Place.
She added that there is hardly another property in the Raffles Place that has redevelopment opportunities such as The Arcade’s. With its 999-yr tenure advantage, it should be a sought-after property, Leng said.
The Arcade’s collective sale Public tender will close by the 8th January, 2020, 3:00 PM.
999-year Leasehold – It is Very Rare in Central Business District Area as Most CBD Commercial Building Falls Under 99-Yr. This is a Great Opportunity for Developer to Grab Hold of it
High Demand Office Space – With Limited Supply and High Demand of Office Space in CBD area, New Office Development is Much Needed
Integrated Development – Under the Draft Master Plan 2019, The Site Can Be Redeveloped into An Integrated Development with Office, Hotel, Residential and Retail Components
50-storey Skyscraper – More Height, More Space, More Profits
Best Business Location – Prime District 1. Located in The Heart of Singapore’s Bustling Commercial District
Excellent Connectivity – Raffles Place MRT Interchange at their Doorstep Which Serve 2 Lines: East West Line & North South Line. Connectivity is Very Important for Any Businesses