Property developer Frasers Centrepoint is acquiring Starhub Centre from CapitaCommercial Trust (CCT) for approximately S$380 million.
Starhub Centre is a ten-storey office building with retail space located next to FCL’s Centrepoint mall. Currently, the property has a committed occupancy rate of about 68.2 percent and the current lease for the site is expected to expire in January 2095.
CCT said it has obtained in-principle approval from the Singapore Land Authority to top up the site’s lease to 99 years, which is subject to the payment of a differential premium.
Earlier this year, the URA had given the approval to convert the property into a residential block. However, 20 percent to 40 percent of the total gross floor area should be reserved for commercial purposes.
The site was last valued by CB Richard Ellis to be worth S$266.7 million in June this year.
Mr. Lim Ee Seng, CEO of Frasers Centrepoint, said that with StarHub Centre’s strategic location in Orchard Road, it has a great redevelopment potential for high-end mixed retail and residential development.