Tanglin Shopping Centre, an ageing strata-titled Orchard Road landmark, becomes the latest property to go on a collective sale. The owners are making a third attempt on en bloc, after failed attempts in 2011 and 2014. They have elected a sales committee on Friday.
Tanglin Shopping Centre, a 47 year old building comprising of a six-storey podium block of shops, eateries and medical suites. There is also a 12 storey tower block comprising of offices. Owners of 80 per cent of the property by share value and strata area have to sign on the collective-sale agreement for the building to be put on the market.
The first attempt in 2011 failed because the reserve price of $1.25 billion was not met. It translate to a land cost of about $4,200 per sq ft per plot ratio (psf ppr) of gross floor area, assuming that the 68,512 sq ft of freehold site has been redeveloped.
The reserve price for the second attempt was lowered to $1 billion, about $3,200 psf ppr. However, the 173 owners are unable to gather the consent levels before the collective-sale agreement in November 2013 expired.
The largest stake holder of Tanglin Shopping Centre is Millennium & Copthorne Hotels, the hotel arm of Singapore-listed property group City Developments. They hold a stake of 34 per cent of the building. They signed the second collective sale agreement in November 2013.
The owners are more keen to sell because the maintenance costs of the building is rising due to the old age of the building.
After the formation of the sales committee, another meeting will be held to appoint a marketing agent and lawyers.
Tanglin Shopping Centre joins a recent slew of commercial and mixed-use properties looking for collective-sale.
Collective-sale committees have been formed at Goldhill Centre in Novena and Katong Shopping Centre in Mountbatten Road. The reserve price is being set when their extraordinary general meetings are held this month.
Jalan Besar Plaza and Tai Wah Building off Orchard Road ,both on freehold land, are asking for $390 million and $81 million respectively.