Katong Shopping Centre up for collective sale at S$630mil

UPDATED: Katong Shopping Centre (pictured) has been put up for collective sale by tender on Tuesday (14 June), marketing agent Cushman & Wakefield announced in a press release.
The property comes with a reserve price of S$630 million, or S$2,248 per sq ft per plot ratio based on the mall’s existing gross floor area of 280,203 sq ft.
Director of Capital Markets at Cushman & Wakefield, Christina Sim said the shopping centre is expected to be a project “ideal for ‘additions and alterations’ (A&A) to recreate a landmark mall in Katong.”
“There is also a possibility of setting aside some 3,000 square metres (32,292 sq ft) for medical suites, subject to the approval of the competent authority,” Sim said.
The 86,924 sq ft freehold site is zoned for commercial and residential use with a 3.0 plot ratio under the 2014 Urban Redevelopment Authority’s (URA) Master Plan. However, the current use for Katong Shopping Centre as confirmed by a baseline report is full commercial with a total GFA of 26,031.76 sqm or 280,203 sqft reflecting a plot ratio of 3.223. Cushman &
Cushman & Wakefield has applied for outline planning permission for full commercial use, which would be in keeping with the existing property’s use.
“It is expected that Katong Shopping Centre will be a project ideal for ‘Additions & Alterations’ to re-create a landmark mall in Katong. There is also a possibility of setting aside some 32,292 sq ft for medical suites, subject to approval.”
Comprising a seven-storey podium block and a five-storey annexe, the development built by City Developments currently offers 425 shop and office units and has 323 car park lots. The property developer currently owns 60 units of the total.
According to Credit Suisse, City Developments (CDL) could gain S$177 million from the outright sale of Katong Shopping Centre.
“Based on a sale at S$2,000 per sq ft (as a conservative measure, assuming lower apportionment of share value) and CDL’s owned strata area of 88,727 sq ft, we believe CDL could see sale proceeds of S$177 million,” said Credit Suisse.
The tender for Katong Shopping Centre will close on 8 September.
Image Source: Cushman & Wakefield.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg

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