An ageing Orchard Road landmark has become the latest property to throw its hat into the collective-sale ring.
The owners of the strata-titled Tanglin Shopping Centre are making a third bid to sell the building en bloc, following attempts in 2011 and 2014. They will elect a sales committee at a meeting on Friday.
The 47-year-old building comprises a six-storey podium block of shops, eateries and medical suites, and a 12-storey tower block of offices. For the building to be put on the market, owners of 80 per cent of the property - by both share value and strata area - must sign the collective-sale agreement.
The first attempt at a collective sale in 2011 fell through when the reserve price of $1.25 billion was not met. This would have worked out to about $4,200 per sq ft (psf) of potential gross floor area, assuming the 68,512 sq ft freehold site had been redeveloped.
The reserve price for the second attempt was $1 billion, or about $3,200 psf per plot ratio. But this attempt also fell through when the property's 173 owners failed to garner the consent levels required before the collective-sale agreement expired.
Millennium & Copthorne Hotels, the hotel arm of Singapore-listed property group City Developments, holds the largest stake in the building at 34 per cent. It signed the second collective-sale agreement in November 2013.
Mr Len Hoo, who was the sales committee chairman in the property's previous collective-sale attempt, said he is keen to sell because maintenance costs are rising due to the building's age.
"The building is not in tip-top condition and it's time to rejuvenate it," said Mr Hoo, who is the managing director of family firm C.T. Hoo which owns an office unit and a jewellery shop in Tanglin Shopping Centre.
After the sales committee is formed, another meeting will be held to appoint a marketing agent and lawyers for this latest collective-sale attempt.
Tanglin Shopping Centre joins a recent slew of commercial and mixed-use properties looking to hop on the collective-sale bandwagon.
Collective-sale committees have been formed at Goldhill Centre in Novena and Katong Shopping Centre in Mountbatten Road, with both projects targeting to set a reserve price when their extraordinary general meetings are held next month.
Meanwhile, Jalan Besar Plaza and Tai Wah Building off Orchard Road - both sitting on freehold land - are asking for $390 million and $81 million respectively.
Adapted from: The Straits Times, 30 October 2017