Over 80% of the owners had given their consent to the collective sale at the lower price of $700 million (Photo: Samuel Isaac Chua/EdgeProp Singapore)
SINGAPORE (EDGEPROP) - It looks like the majority of the strata owners of Golden Mile Complex have given their consent for the collective sale committee (CSC) to proceed with the sale of the property on Beach Road at $700 million. It was the price offered by joint bidders, Far East Organization and Perennial Holdings.
See also: Far East Organization, Perennial Holdings make $700 mil offer for Golden Mile Complex
The offer was $100 million or 12.5% below the reserve price of $800 million.
However, in this latest exercise, marketing agency Edmund Tie had received “overwhelming support” for the collective sale, according to a letter that was sent to all the owners of Golden Mile Complex on April 23. More than 80% of the owners - both in terms of strata area and share value – agreed to the sale “in a record time” of 15 days, according to the letter. When contacted, Edmund Tie could not be reached for comment.
Under the conditional agreement, the CSC of Golden Mile Complex has until May 9, to exercise the option.
View of Kallang Basin and Tanjong Rhu with the Sports Hub on the left and Singapore Flyer on the right - from the balcony of Kalastree's 12th floor apartment (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Ponno Kalastree, managing director of security firm Mainguard International, was among those who had given their consent for the sale. Kalastree owns a 2,200 sq ft apartment on the 12th floor of Golden Mile Complex, with views of Kallang Basin, Tanjong Rhu, with Singapore Sports Hub on one side and Singapore Flyer on the other. The apartment has been his home for the past 30 years.
“Since we bought the unit 30 years ago at a much lower price, we agreed with the offered price,” he said, when contacted by EdgeProp Singapore.Kalastree also owns two strata office units on the eighth floor, where he operates his security business from.
The Golden Mile Complex collective sale wasn’t just a straight sale, but it involved conservation of the main building too. Another significance of Golden Mile Complex which the government wanted to safeguard, was that it was the first mixed-use development built on the first site sold under the government’s land sales programme in 1967.
URA had rolled out a suite of incentives to entice potential buyers. For instance, bonus floor area equivalent to a one-third increase over the existing development intensity. The developer will also be given a full tax waiver for the conserved floor area as well as a partial tax waiver for the floor area of the new 30-storey tower that can be built adjacent to the conserved block.
Recreational deck at Golden Mile Complex (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Developers will have the flexibility to extend the site boundary by alienating the adjoining state land.
The lease on the site can be renewed to a fresh 99-year lease, subject to formal approval from relevant authorities. The developers will have flexibility in the mix of commercial, residential and hotel uses. The commercial component including office space can make up to 51% of the total space at Golden Mile Complex.
Golden Mile Complex has an existing gross floor area (GFA) of 602,784 sq ft. With the bonus floor area, and alienation of part of the adjoining State Land to enlarge the site, the maximum potential GFA could be increased to 871,884 sq ft.
“This is the second largest collective sale in 2022, and it’s the first to include conservation,” remarks Mark Yip, CEO of Huttons Asia. “It is a good example of Public Private Partnership in rejuvenating our limited land resources. The package put forth by the Government is unique and shows that conservation and development can go hand in hand.”
The success of Golden Mile Complex should spur rejuvenation in that area of Beach Road (Source: EdgeProp Landlens)
The successful collective sale of Golden Mile Complex should jumpstart rejuvenation at that stretch of Beach Road, says Bruce Lye, managing partner of SRI. This could encourage other owners of ageing strata commercial developments such as Golden Mile Tower, Textile Centre and Sultan Plaza to relaunch their collective sales. (Find Singapore commercial properties with our commercial directory)
“Far East Organization seems to be taking on a lot of integrated developments – from One Holland Village to Jalan Anak Bukit and now, Golden Mile Complex,” adds Lye.
Huttons’ Yip believes that this latest collective sale will “give confidence that developers remain keen to acquire attractive sites, despite the large price tag”.
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