Frasers Property is paying $391.9 million, or $2,577 psf per plot ratio (psf ppr), for the rear plot of The Centrepoint, which will bring the group closer to full ownership of the Orchard Road property.
The tender price assumes full commercial use, a fresh 99-year tenure and intensification to a plot ratio of 5.6. The land betterment charge associated with the lease top-up and intensification is estimated at approximately $253.13 million.
The developer can thus maximise the potential of this site, with an eye on "national plans" to rejuvenate the Orchard Road precinct.
The property was first put up for sale in January at a guide price of $418 million, which translates to $2,709 psf ppr.
While The Centrepoint is better known for its main road-facing mall, which Frasers Property controls, the so-called rear plot consists of 66 retail units and 66 residential apartments under various owners.
Prior to the collective sale for the rear plot, Frasers Property already held a majority stake in it, owning over 52% of the units by strata area.
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Frasers Property is the majority shareholder in the freehold front plot, owning about 96% of the units by strata area.
The Centrepoint, completed in 1983, is Frasers Property's first asset. It also has full ownership of 51 Cuppage Road, a 10-storey office building directly linked to The Centrepoint.
"We are pleased to strengthen our ownership of The Centrepoint. This gives us greater flexibility to unlock the site’s long-term potential, including assessing broader rejuvenation plans for the area," says CEO of Frasers Property Singapore Soon Su Lin.
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"In the meantime, it remains business as usual at The Centrepoint, where we continue to enhance the mall’s retail offerings and organise yearlong marketing activities to attract shoppers to the mall,” she adds.
The completion of the acquisition is subject to the obtaining of a sale order approving the collective sale or receipt of consent from all subsidiary proprietors to the sale.
Frasers Property shares closed at $1.06 on Feb 26.
