Edmund Tie & Company (ET&Co), the sole marketing agent for the collective sale of Golden Mile Complex, on October 30 announced that the landmark commercial property is up for sale by tender.The landmark commercial property has a land area of approximately 1.3 hectares and is zoned for Commercial use under Master Plan 2014.
Golden Mile Complex is an iconic development occupying a prominent plot along Beach Road, boasting dual frontage along Beach Road and Nicoll Highway with panoramic city and sea views. It is strategically positioned at the gateway to the city centre just outside the Electronic Road Pricing (ERP) zone and just a stone’s throw away to Nicoll Highway MRT station on the Circle Line (CCL).
Its signature step-terraced building design is a visionary architectural masterpiece and is Singapore’s icon of urbanism. DP Architects (formerly known as Design Partnership), who designed Golden Mile Complex in the 1960s as one of the first Government Land Sale (GLS) sites, is on board as consultant architect for the development as appointed by the Collective Sale Committee.
Located within the Beach Road/Ophir-Rochor Corridor which is envisioned to be a vibrant mixed-use cluster under Master Plan 2014, the landmark commercial property presents an exceptional opportunity to create a landmark destination at Beach Road, integrating work, live, and play elements.
Senior director of investment advisory Swee Shou Fern commented: “Golden Mile Complex is a national icon that has shaped the visual character of our built landscape. We are proud to present this rare opportunity for adaptive reuse. Its distinctive architecture and worldwide iconic status will offer tremendous potential to transform the property into an exciting work-live-play destination in this growth area. The new Golden Mile Complex will be an essential part of the rejuvenation of the Beach Road corridor and we are working closely with DP Architects and URA on the conservation of the building and further ways to enhance its potential.
“This unique adaptive reuse opportunity provides the developer with the chance of incorporating a new vision into this iconic development. Many exciting development concepts may be considered for the Property. The collective sale of a large-scale conserved building in Singapore is unprecedented and we will be conducting a longer tender process to allow interested parties to carry out a detailed study.”
Outline Application has been submitted to retain the existing 16-storey building and addition of a new block next to the building, subject to authorities’ approval. Regarding the Outline Application, URA has advised that Golden Mile Complex is under conservation study and they are open for discussions to facilitate conservation of the landmark commercial property.
Chan Hui Min, director of DP Architects commented: “Golden Mile Complex is an architectural icon and many people think that it is important to the public memory of Singapore. It can be sensitively integrated into the new development and be adapted to new uses that meets the needs of today. Many successful developments that integrate older buildings not only manage to optimise the land use efficiency, but also leverage on the history of the site to bring value to the sense of place and identity of the development. We can create win-win situations with sensitive adaptive reuse.”
The reserve price for the landmark commercial property is $800 million.
The differential premium and lease upgrading premium to intensify the land use and to top up the lease to 99 years respectively will depend on the developer’s proposed land use mix. The tender exercise for the landmark commercial property will close on Wednesday, 30 January 2019 at 3pm.
Mr Paul Ho, chief mortgage consultant of iCompareLoan said owners of the landmark commercial property have to act quickly and decisively.
Whatever decision owners facing en bloc sale make, it is better to make it fast so that the sale (or non-sale) can be concluded with minimal delay and maximum benefit to the owners. One way he said was to conduct a Collective Sales Agreement (CSA) as well as concurrently collect a “Non Collective Sales Agreement (NCSA)”, so that once a NCSA reaches 20%, the collective sale process is called off. There is really no point to drag on.
As collective sale process takes 20 to 30 months to complete, during this time, the owners typically do not have sufficient funds for down-payment and their CPF OA funds are tied up in the property, hence they cannot buy a new condominium early.
By the time the transaction is completed in 20 to 30 months later, the property prices would have already moved up 10 to 20 per cent. This is already evidenced by sellers of older estate asking higher prices. Hence if the process takes 20 months to 30 months, owners may need to consider the cost of a replacement unit by that time, else they may want to hold up a higher selling price.
Mr Ho pointed out that the rules are quite onerous and stringent and is governed by the Land Titles (Strata) Act – section 84A. Over the years, additions and amendments by the Ministry of Law to the en bloc law have made the collective sale rules even tighter.
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