$1.8 billion collective sale tender for People's Park Centre closes without bids
The collective sale tender for People's Park Centre in Chinatown closed Thursday (Aug 18) without any bids.
A spokesman for its marketing agency, ERA Realty Network, told The Straits Times it will be initiating private negotiations with some developers in the next 10 weeks.
The mixed-use development was launched for collective sale by public tender with a reserve price of $1.8 billion last month.
It came three years after an attempt to sell the centre en bloc for $1.35 billion failed as a majority of owners did not consent to the move.
Property analysts said the $1.8 billion price tag could be a drawback for developers due to the high capital requirement.
But they said larger players or consortiums could be interested in the site, given its size and proximity to the Central Business District.
Mr Sunny Wong, who leads the ERA team handling the collective sale of the development, said: "There have been inquiries, but developers had to consider the quantum.
"There's demand for mixed-use developments especially after the sale of Golden Mile Complex, Peace Centre and Peace Mansion, and there's also no additional buyer's stamp duty (ABSD)."
While buyer's stamp duty applies to all properties, the ABSD, which was introduced as part of cooling measures, is only for residential properties.
The reserve price for People's Park Centre works out to a land rate of $2,620 per square foot per plot ratio (psf ppr).
It also factors in the differential premium and the premium to top up the land tenure to a fresh 99-year lease.
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 comprises a 13-storey block and a 30-storey block, and has 324 shops, 256 offices, 120 apartments and a carpark.
According to ERA, owners of shops could receive sale proceeds of between $213,000 and $22.7 million, while those with offices could receive between $536,000 and $12.5 million.
Owners of apartments could receive between $2.39 million and $3.42 million, with penthouses drawing between $3.42 million and $5.33 million.
Mrs Lee Qing Qing, 68, who owns two shops in People's Park Centre, told ST she hoped the collective sale would go through as she saw it as a good opportunity to retire.
"Of course, I feel sad and sentimental, but all good things must come to an end," she said in an interview last month. "It has been a good 48 years, but it is time for me to rest and enjoy my life."