Savills Singapore, as the exclusive marketing agent, is pleased to announce the sale of Tanglin Shopping Centre via the public tender exercise which closed on 22 February 2022.
The buyer of Tanglin Shopping Centre is Pacific Eagle Real Estate (PER), a Singapore-based real estate investor and developer privately held by the Tanoto family. For over 50 years, the Tanoto family, through the RGE group of companies, has founded and managed a range of businesses which produce natural fibers, edible oils, green packaging and natural gas. Today, the group employs 60,000 staff around the world.
The price is $868 million, which works out to $2,769 psf ppr assuming full commercial usage.
The Freehold 68,512 sq ft site is zoned ‘’Commercial’’ with an allowable gross plot ratio of 4.2 under the 2019 Master Plan, and has a height control of up to 20 storeys. Tanglin Shopping Centre has an existing verified gross floor area (GFA) and development baseline of approximately 313,435 sq ft (PR 4.57).
Enjoying a very prominent frontage of approximately 105 metres along Tanglin Road as well as a secondary frontage on Cuscaden Road, Tanglin Shopping Centre is currently a 12-storey commercial complex with two basement levels and an annex eight-storey carpark. In the main complex, retail and office units are located from Basement 2 to the 6th storey of the podium block, while the 7th to 12th storeys of the tower block consist of office units. Carpark lots are available in the Basement 1 and Basement 2 of the main complex and at the annex 8-storey carpark building. Built in 2 phases, the main complex was completed in the 1970’s, while the office tower extension was completed in early 1980’s. The development has 364 units.
Well served by the public transport network within a mere 6 and 9 minutes’ walk from Orchard Boulevard MRT and Orchard MRT station, respectively, the site offers unrivalled access to the Central Business District and Marina Bay. The site is also seamlessly connected to a plethora of amenities including the famed Orchard Road shopping belt, renowned medical establishments like Camden Medical Centre and Gleneagles Hospital, exclusive private clubs, such as Tanglin Club and The American Club, and Singapore Botanic Gardens, an 82-hectare of tropical paradise.
Pacific Eagle Real Estate Director, Sun You Ning, said: “Tanglin Shopping Centre is one of Singapore’s earliest retail landmarks and occupies a prominent location next to the St. Regis Hotel in the Orchard Road enclave. Pacific Eagle Real Estate is honoured to have the opportunity to create an iconic development befitting the property’s heritage and its frontage along one of our island’s most important streets.”
Specifically in Singapore, Pacific Eagle Real Estate previously purchased en bloc Chinatown Plaza at 34 Craig Road, which is now being redeveloped into Mondrian Singapore Duxton, a luxury lifestyle hotel that will combine historic architecture from Singapore's centuries-old shophouses with modern, contemporary influences. A more
recent purchase is a building at Duke’s Road, with attractive redevelopment potential given its location along Bukit Timah Road near the Botanic Gardens.
Jeremy Lake, Managing Director, Investment Sales & Capital Markets, said: “The tender for Tanglin Shopping Centre was keenly contested. The key appeal of the site is it being a freehold commercial site, which allows buyers the flexibility of various development options.”
Galven Tan, Deputy Managing Director, Investment Sales & Capital Markets, shared: “This is the fourth collective sale attempt by Tanglin Shopping Centre and Savills is excited to have achieved success for the owners. The marketing campaign ran by Savills resulted in a competitive bidding exercise which resulted in a price that is 10% above the reserve price.”
The owners of Tanglin Shopping Centre are represented by the specialist property team at Legal Solutions LLC, led by Directors Patrick Ee and Christopher Yong, who have advised on over 45 collective sale projects. The sale of Tanglin Shopping Centre remains subject to the Strata Titles Board’s approval. On the sale of Tanglin Shopping Centre, Patrick Ee states: “We are honoured to be the legal advisers of choice on high profile collective sales such as Tanglin Shopping Centre, which is an iconic and well-known commercial development here in Singapore.”
Dentons Rodyk & Davidson LLP represented the buyers of Tanglin Shopping Centre in the collective sale.