Office building Realty Centre has been sold for $148 million to Singapore-listed The Place Holdings in the first commercial en bloc sale in 2019.

Office building Realty Centre has been sold for $148 million to Singapore-listed The Place Holdings in the first commercial en bloc sale of the year, reported The Business Times.

The acquisition price fell short of the 12-storey buildings’ $165 million reserve price.

In an SGX filing, The Place Holdings revealed plans to redevelop the freehold property in Tanjong Pagar into a mixed-use residential and commercial tower, subject to authorities’ approval. The building will also house the company’s headquarters, it said.

Backed by The Place Investment Group of China, the company deals in branding, events organising as well as tourism-related business development.

Realty Centre sits on a 11,000 sq ft site zoned commercial under the 214 Master Plan with a plot ratio of 5.6 and a height limit of up to 35 storeys.

Under the recently announced CBD Incentive Scheme, the property falls under the Anson precinct, noted marketing agent Cushman and Wakefield.

This implies that Realty Centre could enjoy bonus plot ratios of 25 percent to 30 percent should there be a change of use to either residential with commercial on first storey (+30 percent) or residential and commercial (+25 percent).

Cushman and Wakefield capital markets director Christina Sim described Realty Centre as a ‘versatile site’ as it is found on the fringe of a location that will be undergoing “massive urban rejuvenation and transformation”.

Source: 23 April 2019, CommercialGuru