In a significant move that underscores the allure of Singapore's real estate, Chinese steel tycoon Du Shuanghua, through his investment entity Glory Property Development under Bright Ruby Resources, has acquired the iconic Far East Shopping Centre en bloc. The purchase price of approximately $908 million translates to an impressive $3,350 per square foot per plot ratio (psf ppr), based on the potential gross floor area of 290,574 square feet, all made possible by the Strategic Development Incentive (SDI) scheme. This strategic acquisition highlights Singapore's enduring appeal to global investors and the continuous evolution of its prime real estate market.
A Look at Du Shuanghua's Previous Singapore Ventures
Du Shuanghua's investment track record in Singapore is notable. Last year, his investment vehicle Ever Glory, also under Bright Ruby Resources, secured the acquisition of Income@Raffles, a 37-storey, 999-year, Grade-A office building, for slightly over $1 billion. This demonstrated a strong commitment to Singapore's real estate market.
Bright Ruby Resources' Diverse Portfolio
Bright Ruby Resources' appetite for prime assets extends far beyond Singapore's shores. Over the years, the company has made strategic investments in major cities worldwide. These include the acquisition of the former Grand Park Orchard and Knightsbridge, Marriott Champs-Elysées in Paris, Hilton Hotel in Sydney, and the Westin Hotel Tokyo. This global perspective brings a wealth of expertise and insights that can contribute to the rejuvenation of Orchard Road.
The Transformation of Orchard Road Continues
Far East Shopping Centre, located at 545 Orchard Road, boasts a prime location in District 9 with a 75-meter frontage along Orchard Road and a 55-meter frontage along Angullia Park. With a sprawling land area of 36,014 square feet and a 999-year lease dating back to 1871, it is ideally situated for transformation.
Under the leadership of Du Shuanghua's Glory Property Development, the asset is poised for a comprehensive makeover. It is anticipated that the property will evolve into a dynamic commercial hub, offering a diverse range of amenities, including retail spaces, hospitality, office facilities, and possibly even residences.
A Key Part of Orchard Road's Redevelopment
Far East Shopping Centre is part of the exciting redevelopment plan for Orchard Road, identified by the Urban Redevelopment Authority (URA) as one of the key areas to be transformed into a vibrant new destination. This ambitious initiative involves multiple properties, including Hotel Properties Ltd's (HPL) Voco Orchard Singapore, Forum the Shopping Mall, HPL House, Wharf Estates Singapore's Wheelock Place, and Bonvests Holdings' Liat Towers.
The SDI Scheme: A Catalyst for Transformation
The introduction of the Strategic Development Incentive (SDI) scheme in April 2021 has been instrumental in spurring such transformative projects. The scheme encourages property owners to collaborate with neighbors to create innovative developments, offering a 20% bonus gross floor area (GFA). This, in turn, enhances flexibility in land use, building height, and overall development potential.
Orchard Road's Bright Future
The rejuvenation of Orchard Road is undoubtedly in full swing. With the addition of Far East Shopping Centre to Du Shuanghua's portfolio, the area's transformation is set to gain further momentum. As these developments progress, we can anticipate a renewed Orchard Road that promises to be an even more exciting and dynamic destination.
Key Highlights and Summary:
Strategic Acquisition: Chinese tycoon Du Shuanghua, through Glory Property Development, has purchased Far East Shopping Centre en bloc for approximately $908 million, marking a significant investment in Singapore's prime real estate market.
Impressive Price per Square Foot: The purchase price translates to around $3,350 per square foot per plot ratio (psf ppr), showcasing the high value and desirability of Singapore's real estate market.
Global Investment Track Record: Du Shuanghua's previous acquisitions in Singapore, including Income@Raffles, demonstrate his commitment to the country's real estate market. His investment vehicle, Bright Ruby Resources, has a diverse portfolio of prime assets worldwide.
Transformation of Orchard Road: Far East Shopping Centre is part of the broader redevelopment plan for Orchard Road, identified by the Urban Redevelopment Authority (URA) as a key area for transformation. This ambitious initiative involves multiple properties and aims to create a vibrant new destination.
Strategic Development Incentive (SDI) Scheme: The SDI scheme has played a pivotal role in encouraging transformative projects. It offers property owners a 20% bonus gross floor area (GFA) and enhances flexibility in land use and development potential.
Bright Future for Orchard Road: With the addition of Far East Shopping Centre to Du Shuanghua's portfolio, Orchard Road's transformation gains momentum, promising an even more exciting and dynamic destination.
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