The Place Holdings aims to ‘unlock value’ by putting Realty Centre up for sale from $185 mil
The Place Holdings aims to ‘unlock value’ by putting Realty Centre up for sale from $185 mil. The Tanjong Pagar Central Business District of Singapore’s Realty Centre, a 12-story commercial structure, was completely demolished. A Singapore-listed firm called The Place Holdings paid $148 million for the site in April 2019, although construction has not yet begun.
The prior Realty Centre was located on a freehold block of land with a size of 11,000 square feet, a plot ratio of 5.6, and a permitted height of 35 stories. At the time of purchasing, the purchase price was approximately $2,441 per square foot per plot ratio (ppr). In addition to the site itself, The Place Holdings alienated three state property parcels totaling 358.8 square meters, or 3,862 square feet, bringing the overall area of the site to 14,861 square feet. As a result of the acquisition, the site may now utilize its dual frontage along Enggor Street and Bernam Street. You may walk from the location to the future Tanjong Pagar and Prince Edward MRT Stations, both of which are scheduled to open in 2026.
The purchase of Realty Centre happened concurrently with the announcement of the CBD Incentive Scheme in URA’s Master Plan 2019 (MP19). If the use of the Realty Centre property switches to a hotel (25%), residential and commercial (25%) or residential with business on the first floor (30%), it is eligible for a bonus plot ratio under the CBD Incentive Scheme of between 25% and 30%. URA granted provisional approval for a 37-story skyscraper with a two-story commercial platform and a 33-story residential tower with 114 units and amenities including sky terraces and swimming pools. There will also be a three-level underground parking garage. The 7.28 plot ratio, or estimated gross floor area (GFA), is roughly 108,194 square feet (excluding bonus GFA).
The Place Holdings predicted that the Realty Centre development’s sales launch will take place sometime in 2Q2023, when it released its 1HFY2022 financial results on August 4. Nevertheless, the Realty Centre property is currently for sale, with a minimum asking price of $185 million. For this story, The Place Holdings declined to respond. The Place Holdings has chosen Cushman & Wakefield (C&W), who managed the collective sale three years ago, to handle the asset’s private treaty divestment. C&W declined to respond as well.
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