Katong Shopping Centre will make a third attempt at a collective sale soon with an asking price of about $630M. More than 80 per cent of the owners by share value and total area of the 425-unit mall have consented to the proposed sale. The mall sits on a 90,000 sq ft site with a plot ratio of 3.0. It is zoned for commercial and residential use.
City Developments (CDL) owns 60 units and 323 carpark spaces of mall.
Opened in 1973, Katong Shopping Centre was the most modern and largest mall in the east at the time.
Outline planning permission for full commercial use has been applied, which would be in keeping with its current use. Additional gross floor area for medical suites has also been proposed.
Assuming a land price of over $2,000 per sq ft per plot ratio, the sale could be challenging because the market is price-sensitive and the price quantum is over $500 million. Experts consider retail with offices as the best scheme for the site.
The days of buying sites to develop, strata title and sell at lofty prices are over since commercial strata sales have slumped with the imposition of the Total Debt Servicing Ratio.
Potential interest for the site will hinge on what sites are made available through the Government Land Sales programme for the second half of the year.
On a separate note, Jalan Besar Plaza was launched for collective sale yesterday. The minimum asking price is $380 million.
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