The collective sale fever in the residential property market has now spread to the commercial property market, as owners of such properties jump onto the trend too.
Millennium and Copthorne (M&C) Hotels, the hotel arm of City Development, has announced that its unit has signed a collective sales agreement to release Tanglin Shopping Centre up for sale.
King’s Tanglin Shopping, M&C’s unit, owns a 35 percent stake in the building with 85 freehold strata units comprising both office and retail units, as well as 325 carpark lots in the building.
The 20-year-old Tanglin Shopping Centre, which is located next to St. Regis Hotel and Residences, has a prime site of about 68,500 sq ft. Analysts said that if the en bloc sales agreement for the property becomes successful, it could be the first collective sale for a commercial property in five years.
Industry watchers noted that the site could fetch between $1,600 psf and $1,800 psf of potential gross floor area, which works out to around $480 million to $560 million.
It is believed that owners of several shops, including M&C, have backed the collective sale proposal.
"We’re waiting for the big boys like Singapore National Employers Federation which owns the 10th floor of the mall, Justmen’s and Hassan’s Carpets, which own a few units to come on board," said a source.
Mr. Anil Bhatia, who owns a tailor shop there, said some owners are looking forward to a collective sale as “they want to retire and bail out at a good price.”
Several industry observers added that some tenants in the property may not be able to stay in the Orchard Road area due to its high rental rates.
Mr. Colin Tan, research and consultancy director of Chesterton Suntec International, said: "The place has got character. It would be sad, as some will move to more obscure malls, or even retire."