People’s Park Centre up for collective sale at $1.8 billion

SINGAPORE – Mixed-use development People’s Park Centre in Chinatown has been put up for collective sale by public tender with a reserve price of $1.8 billion, three years after a¬†previous attempt.

The reserve price for the site translates to a land rate of $2,620 per square foot per plot ratio (psf ppr), said its marketing agency ERA Realty Network on Wednesday (July 6).

The price factors in the differential premium and the premium to top up the land tenure to a fresh 99-year lease.

This is higher than the $1.35 billion it was aiming for in 2019.

Built in 1970, the commercial-cum-residential development sits on a 95,467 sq ft site, with a gross floor area of about 821,017 sq ft. It is zoned commercial under the Urban Redevelopment Authority’s Master Plan 2019 with a gross plot ratio of 8.6.

The development, which is not earmarked for conservation, comprises a 13-storey and a 30-storey block, and has 324 shops, 256 offices, 120 apartments and a carpark.

The collective sale has obtained 84 per cent of the owners’ signatures by strata area and 80 per cent by share value, ERA said.

Mr Koh Yam Khoon, chairman of the collective sale committee, said many owners were happy about the collective sale launch.

Mr Sunny Wong, who leads the ERA team handling the collective sale of the development, said: “The collective sale of People’s Park Centre will provide a rare opportunity for developers to build an iconic building in the heart of a historical district in Singapore.”

He added that it is not often that a major development in the city area, next to an MRT interchange, comes onto the market.

“We believe that this collective sale will attract both major developers and real estate funds,” he said.

People’s Park Centre is located near historical landmarks such as Upper Barracks and Chinatown Heritage Centre, malls such as OG Building and Chinatown Point, and schools including River Valley Primary School and Singapore Management University.

The tender for the site will close at 3pm on Aug 18.