Sim Lim Square, Singapore's renowned technical shopping center on Rochor Canal Road, was put on a collective sale through a $ 1.25 billion reserve bid yesterday.
His 423 owners get to get between $ 488,000 and 67.5 million each if the sale is successful, said marketing agent SLP Scotia.
More than 80% of the owners agreed to sell on March 19, after the initial demand price of $ 1.1 billion was increased to $ 1.3 billion in February.
In a statement yesterday, GLP Scotia said developers can explore the conversion of Sim Lim Square to the development of mixed use with hotel and office space, thanks to its "unique and strategic location" in the Ophir-Rochor corridor, offered as part of the extension city center.
The shopping center was built in 1985 and remained on its 99-year lease for 63 years.
At 78152 ft ft the site houses 492 commercial units on six floors and two basement levels.
Mr Vikas Gupta, Chairman of the Collective Sales Committee, believes that this page can be better used.
"(That is) currently underutilized and the loss of the system does not allow Sim Lim Square to use the spare space. It is the perfect time to restore Sim Lim Square," he said.
The latest gross floor space figure approved by the URA is 391,000 square feet, according to GLP Scotia. The site is also zoned for commercial use with a plot ratio of 4.2, he added.
"Interested developers could explore the conversion of Sim Lim Square to other uses, using the latest URA incentive scheme, a strategic development incentive scheme," Scotia said.
This program, which was announced during the launch of the URA Master Plan proposal last month, aims to support the renewal of older buildings in strategic areas for a new, bold and innovative development that will positively transform the surrounding urban environment.
Industry Observer Sing Tien Foo, Associate Professor at Singapore's National Real Estate Department, said a $ 1.25 billion reserve price of $ 3.197 per square foot per piece of land (psf ppr) is high.
An attempt at collective sales also comes in the midst of a challenging market time, he added.
He noted: “Development can be an interesting focus for this area.
There is some potential, but the developer will have to intensify land use.
Sim Lim Square will take place on June 24 at 15:00.
This article was first published in The Straits Times. Reproduction permission.
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