An unforgettable landmark in the East Coast – Katong Shopping Centre, the very first air-conditioned shopping mall in Singapore is up for collective sale. Cushman & Wakefield, the exclusive marketing agent for the property is pleased to announce that subsidiary proprietors holding not less than 80% of the total share values and strata area, have given their consent to sell the property enbloc. The reserve price has been set at S$630 million.
Located in the most coveted precinct in district 15 within the heritage town of Katong and Joo Chiat, Katong Shopping Centre sits on a sizeable freehold plot of some 8,075.5 sqm (86,924 sqft). Sited prominently at the eastern end of Mountbatten Road leading to East Coast Road, she enjoys an expansive frontage of some 170 m and was the darling of the East Coast when she opened her doors to the public in 1973. This part of Katong is a melting pot of some very uniquely Singaporean cultures especially those of the ‘Peranakan’, Eurasian, Malay and Chinese people. Today, developments along this stretch of the east showcase some of Singapore’s most charming heritage buildings with some 800 shophouses in Katong and Joo Chiat designated for conservation.
According to Ms Christina Sim, Director of Capital Markets in Cushman & Wakefield, “commercial re-development sites such as Katong Shopping Centre rarely, if ever, come up for sale. Given that suburban shopping malls, especially those located in the heart of residential neighbourhoods enjoy a significant captive market, Katong Shopping Centre will certainly be a prized catch and a compelling opportunity for an astute Developer and Investor to create a landmark destination mall to cater to the ‘orang kaya’ affluent residents in the East Coast. It also has the potential to be a formidable rival to Parkway Parade.”
The Thomson-East Coast Line (TEL), especially the East Coast stretch from Tanjong Rhu to Bedok South will also enhance public transport accessibility and pedestrian footfall to the property. Both the Amber and Marine Parade Stations which are part of the TEL are estimated to be just 500 to 600 metres’ walk from Katong Shopping Centre. Added to this is the drive to make the Katong locality an attractive destination for tourists, with the completion of 451-room Holiday Inn Express, the 131-room Hotel Indigo, the 229-room Village Hotel and the 540-room Grand Mercure.
Based on the outline planning permission obtained at a gross plot ratio of 3.6 and zoned Commercial, the redevelopment of Katong Shopping Centre is expected to yield some 313,000 sqft of gross floor area for the 86,924 sqft site. This price works out to be $2,077 psf per plot ratio of GFA, inclusive of an estimated development charge amount of some $20 million. The competent authority has also given an in-principle approval to build up to 10% of the GFA as medical suites as part of the commercial component.
The tender exercise will close at 3 pm on 1 September 2016.