More commercial properties attempting en bloc sale
Two properties along Selegie Road are attempting to join the collective sales fever, despite the growing number of commercial spaces that failed to find buyers, reported the Business Times.At Selegie Centre, a 10-storey freehold building with 25 apartments and 33 shops, 90 percent of the owners approved the en bloc sale, setting a reserve price of $120 million or $1,942 psf per plot ratio for the site with a plot ratio of 6.35.According to the collective sale committee chairman M Thomas, thy are considering to launch the en bloc tender this week, with bid submissions closing by 26 July. They’ve also appointed ERA Realty as a marketing agent for their third collective sale attempt.“Areas around Mackenzie Road/Bukit Timah Expressway and Rex Cinema are rapidly being rejuvenated. Buying Selegie Centre should be an excellent investment opportunity. We already have enquiries from several potential buyers and we hope to sell our building fast,” he said.At the 32-storey Peace Centre/Peace Mansion, 70 percent of the owners have consented to the collective sale, short of the 80 percent requirement. The 99-year leasehold project consists of a part-seven-, part-10-storey commercial podium and a 22-storey residential tower with 84 apartments and two penthouses.The owners are understood to be seeking $650 million. While no development charge is payable, the buyer needs to spend about $200 million to top up its remaining lease of 50 years to a fresh 99 years.They’ve also hired JLL as the marketing agent for the fourth en bloc sales attempt of their property with a land area of 76,617 sq ft and gross floor area of slightly more than 600,000 sq ft.While collective sales in the residential sector has been robust with 31 properties sold for nearly $9.2 billion in all so far this year, only two commercial properties – Pei Fu Industrial Building and Chinatown Plaza – have been taken up during the said period for a total of $336.25 million.As such, there is a growing list of commercial properties wherein the en bloc tenders have closed but have failed to secure a buyer, including The Stradia, Verdun House, Jalan Besar Plaza and ICB Shopping Centre.Source: CommercialGuru, 25 June 2018