High Street Centre Relaunched Collective Sale 748 Mil
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High Street Centre, a renowned 29-storey mixed-use development located at 1 North Bridge Road, has recently made its fourth bid for a collective sale. With a price tag of $748 million, Cushman & Wakefield (C&W), the marketing agent appointed for the sale, has announced that they are currently working towards achieving an 80% consensus for a new, lower reserve price, which is expected to fall below $700 million.
This is the fourth time that the owners of High Street Centre have attempted to sell the building as a collective. Last year, the development was put up for sale with the same reserve price of $700 million, but no successful bids were received when the tender closed in January.
The first attempt to sell High Street Centre through a collective sale was made in June 2020 with a reserve price of $800 million. The building was relaunched for sale in May 2021 with a reserve price of $700 million.
According to Christina Sim, C&W’s senior director of capital markets, efforts are currently being made to lower the reserve price to $700 million for the next collective sale tender if the current one is unsuccessful. She points out that High Street Centre is a unique opportunity as it allows for a mix of office, retail, and hotel or serviced apartment components. The dearth of commercial development sites in and around the City Hall District has also led to a premium on rents for exclusive office space.
CDL’s latest development, the Norwood Grand, is set to make its mark in the up and coming neighborhood of Champions Way. With a bid of $294.889 million, City Developments Limited (CDL) secured the highly coveted Norwood Grand site in Woodlands – offering a land rate of $904 per square foot per plot ratio (psf ppr). Their bid emerged as the highest, surpassing the second-highest offer by 8.3%. The runner-up, a joint venture between Hong Leong Group and Mitsui Fudosan known as TID, offered $272.26 million at $835 psf ppr. This sought-after site can accommodate up to 350 units, attracting a total of six bids. Adding a new dimension to the area, Norwood Grand is a promising addition to the Norwood Grand Woodlands development.
Sitting on a 60,299 sq ft, 99-year leasehold plot with a gross plot ratio of 7.72, High Street Centre has a total gross floor area (GFA) of 466,085 sq ft. The site’s lease has about 44 years remaining. In the event of redevelopment, the plot could be used for a mixed-use development with 60% of the GFA allocated for office and retail units, and the remaining 40% for hotel, residential, or serviced apartment use, with a limit of 450 rooms.
The development boasts a prime location, with frontage on Hill Street, North Boat Quay and North Bridge Road, as well as a waterfront promenade stretching over 100m along the Singapore River. It is easily accessible via Central Expressway, East Coast Parkway, and Kallang Paya-Lebar Expressway. The City Hall MRT Station on the East-West and North-South Lines, as well as the Clarke Quay MRT Station on the North-East Line, are just a short walk away.
The tender for the collective sale of High Street Centre will close on June 24. Interested parties can check out the latest listings for High Street Centre properties to find out more about this prized development.