Archive for category: Misc

Du Shuanghua, the Chinese steel tycoon, has recently purchased Far East Shopping Centre via his investment firm Glory Property Development, an entity under Bright Ruby Resources. The purchase price of the mall was around $908 million, translating to $3,350 psf per plot ratio (psf ppr), based on the potential gross floor area of 290,574 sq ft. Michael Tay, head of Singapore capital markets at CBRE, the marketing agent for Far East Shopping Centre, brokered the sale.

Bright Ruby Resources is no stranger to prime real estate investments around the world. In 2006, they paid $1.15 billion for Grand Park Orchard and its retail podium, Knightsbridge. Subsequently, the group acquired Marriott Champs-Elysees in Paris for US$464 million, a Hilton Hotel in Sydney for US$364 million, and the Westin Hotel Tokyo for US$870 million in 2019.

Michael Tay reflects that “We are glad to find the right buyer for Far East Shopping Centre, as Bright Ruby has invested in overseas properties in major cities around the world and has the expertise to bring this to the rejuvenation of Orchard Road.” As an example, the former Grand Park Orchard was asset-enhanced into 308-room Pullman Singapore Orchard managed by Accor Group and the Apple Store at Knightsbridge reopened last year as Singapore’s largest Adidas outlet.

Tampines Ave 11 Condo by Capitaland, is located in District 18, Singapore, and is expected to be completed in 2021. Among the advantages of the condo are its easy connection to Tampines Regional Centre and Tampines MRT station. Furthermore, the development offers convenient access to retail and dining amenities, schools, medical facilities, and other recreational activities. It is well-supported by a comprehensive public transport network that includes public buses and the MRT system. Residents will also enjoy shorter travel times when they move in. With the comprehensive URA Master Plan promising multiple amenities to enrich the lifestyle of area residents, Tampines Ave 11 Condo Capitaland is well-positioned to become one of the most highly sought-after residential developments in Singapore.

Regarding the Strategic Development Incentive (SDI) Scheme offered by URA, which may have contributed to the acquisition of Far East Shopping Centre, Tay states that the new owners can enjoy increased gross floor area (GFA) as well as flexibility in land use and building height. On top of that, they also gain access to a direct underground pedestrian route from Orchard MRT Station, which is expected to increase the footfall to this part of Orchard Road.

At present, Far East Shopping Centre sits on a land area of 36,014 sq ft with a 999-year lease from 1871. It has a 75m frontage along Orchard Road and a 55m frontage along Angullia Park in prime District 9. It has been identified by URA as one of the six buildings to be redeveloped, alongside Voco Orchard Singapore, Forum the Shopping Mall and HPL House, owned by Hotel Properties Ltd, Wharf Estates Singapore’s Wheelock Place, and Bonvests Holdings’ Liat Towers.

Through Glory Property, Du Shuanghua has plans to reposition Far East Shopping Centre into a commercial offering with a mix of uses — from retail, hospitality, office to residences. This comes as no surprise, with the changes coming to nearby properties owned by Hotel Properties Ltd and Pacific Eagle Real Estate. The latter bought Tanglin Shopping Centre for $868 million ($2,769 psf ppr) and the former is developing their three-property Orchard Road complex with hotel, retail, office and residential components, a rooftop garden and a theatre.

Far East Shopping Centre’s record-breaking price of $3,350 psf ppr surpasses that of Ming Arcade, which was sold for $172 million or $3,125 psf ppr last December. The buyer, Royal Group of Companies, is owned by Singapore billionaire Asok Kumar Hiranandani and plans to redevelop the site into a luxury hotel.

Thus, the rejuvenation of Orchard Road is well underway. Du Shuanghua’s purchase of Far East Shopping Centre is yet another milestone and we are excited to see the new developments that will come about.