People's Park Centre takes third stab at collective sale with $1.48 bil guide price
The large redevelopment opportunity may test developer appetite for complex city-centre mixed-use sites requiring lease top-up approval and an estimated $535.4 million upgrading premium.
People’s Park Centre will make its third collective-sale attempt at a $1.48 billion guide price, reflecting an estimated land rate of $2,455 psf ppr.
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Chinatown development People’s Park Centre — which houses residential, retail and office units — will be launched for collective sale via public tender on July 16 with a guide price of $1.48 billion, after having secured the required 80% owner consent.
The collective sale agreement had been signed by 764 subsidiary proprietors representing 545 out of 701 units as at June 18.
That comes up to 80.54% of the total share value and 84.56% of the total area of the lots, according to a July 15 press release by ERA Realty Network.
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This will be People’s Park Centre’s third attempt at selling en bloc. In 2019, the unit owners had tried to go for a collective sale with a $1.35 billion reserve price but the requisite level of owner consent was not garnered. In 2021, they took a stab with a higher reserve price of $1.8 billion, but did not receive any bids.
Located on Upper Cross Street, the development occupies a site area of about 8,869 sq m (95,467 sq ft) and has an extensive 124m frontage along Eu Tong Sen Street.
Under URA’s Master Plan 2025, the site is zoned for commercial use with a gross plot ratio of 8.6 and a building height control of up to 25 storeys.
ERA said it is “one of the largest redevelopment opportunities in Singapore’s city centre”, offering developers a rare opportunity to transform an iconic landmark and shape the next chapter of Chinatown’s evolution.
Prospective buyers may potentially create a more modern, accessible and efficient development while “drawing on the character that has made People’s Park Centre such a recognisable part of the precinct”, ERA added.
The latest guide price of $1.48 billion reflects an estimated land rate of $2,455 psf per plot ratio (psf ppr), assuming approval is obtained for a lease top-up to a fresh 99-year tenure.
Read also: Freehold residential property on Upper East Coast Road for sale at $14.1 mil
This land rate includes an estimated lease upgrading premium of about $535.4 million, according to ERA.
Also, the estimated land rate assumes that no land betterment charge (LBC) will be payable for a proposed mixed-use redevelopment comprising a rough mix of 60% commercial and 40% residential uses.
The lease top-up and redevelopment proposal are subject to approval by the relevant authorities.
The existing development comprises a 13-storey block and a 30-storey block, with a total of 324 retail units, 256 office units, 120 residential units, and a multi-storey car park.
If a collective sale is concluded at the $1.48 billion price tag, the subsidiary proprietors are estimated to receive gross sale proceeds as follows:
Retail units measuring 4 to 596 sq m: $0.17 million to $18.3 millionOffice units measuring 21 to 510 sq m: $0.44 million to $10.3 millionResidential units measuring 154 to 392 sq m: $2 million to $4.5 million
“Opportunities of this scale rarely come to market,” said Sunny Wong, division director at ERA, who is leading the collective sale exercise. “Coupled with the surrounding area’s ongoing rejuvenation, we expect People’s Park Centre to attract strong interest from developers seeking to deliver a signature project.”
Read also: Retail shop at People's Park Centre for sale at $18 mil
The tender will close on Sept 16 at 3pm.
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