People’s Park Centre to relaunch $1.8b collective sale after failed attempt
People’s Park Centre to relaunch $1.8b collective sale after failed attempt. Despite a failed attempt in August that resulted in no bids, People’s Park Centre will try again for a $1.8 billion collective sale.
On Tuesday, the public tender will begin. The previous tender had ended with no bids, prompting a 10-week period of private negotiations, with marketing firm ERA Realty Network reaching out to property developers, fund managers, and overseas investors. Mr Sunny Wong, ERA’s division director for the collective sale, told The Straits Times that despite the fact that nothing came of it, developers showed genuine interest.
The head of the collective sale committee, Mr Koh Yam Khoon, stated that they are still hopeful about selling en bloc because the center is close to the Central Business District and an MRT station. “It’s time to revitalize the Chinatown region,” he said, “so we’re confident in having first-mover advantage.” The reserve price for People’s Park Centre is $2,620 per square foot per plot ratio. It also considers the differential premium and the premium for converting the land tenure to a new 99-year lease.
Mr Wong indicated that the price will not be altered unless there are concrete offers when asked about the decision to relaunch at the same reserve price. “Perhaps, due to the scope of the project, more time may be needed to reach a conclusion or investigate joint venture opportunities,” he stated.
Attempts to sell the center for $1.35 billion and $1.5 billion in 2019 were unsuccessful due to a lack of agreement from enough owners at the time. Owners must agree to at least 80% of the share value and strata area to proceed with the collective sale of developments 10 years or older. People’s Park Centre consists of two buildings, one 13-story and one 30-story, as well as 324 stores, 256 offices, 120 residences, and a parking garage.
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