Frasers Property acquires rear block of The Centrepoint for S$391.9 million
Frasers Property also fully owns 51 Cuppage Road, a 10-storey office building linked directly to The Centrepoint.
A view of the front facade of The Centrepoint, facing Orchard Road. (Photo: Frasers Property)
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SINGAPORE: Frasers Property has been awarded the collective sale tender for the rear block of The Centrepoint for S$391.9 million (US$309 million), in a move the group said on Friday (Feb 27) will strengthen its presence on Orchard Road.
The tender price translates to a land rate of around S$2,577 per sq ft per plot ratio, after including lease top-ups and land betterment charges.
It came in below the S$418 million guide price set when the site - comprising 132 leasehold strata units, including 66 residential units and 66 retail units - was launched for collective sale in early January.
Completed in 1983, The Centrepoint, one of Orchard Road’s most iconic malls, comprises two components - a freehold front plot and a leasehold rear plot.
Frasers Property said the acquisition of the rear plot will bolster "its ability to maximise the potential of this well-located site, in line with national plans to rejuvenate the Orchard Road precinct".
It noted that prior to the collective sale, it already held a majority stake in the rear plot, owning more than 52 per cent of the units by strata area.
Frasers Property is also the majority shareholder in the freehold front plot, owning about 96 per cent of the units by strata area.
In addition, it fully owns 51 Cuppage Road, a 10-storey office building linked directly to The Centrepoint.
“With its prominent main-street frontage along the Orchard Road belt and direct link to Somerset MRT station, The Centrepoint attracts healthy shopper traffic, maintaining a high occupancy rate of about 98 per cent,” said Frasers Property Singapore CEO Soon Su Lin.
On being awarded the collective sale tender for the rear block, Ms Soon said: "This gives us greater flexibility to unlock the site’s long-term potential, including assessing broader rejuvenation plans for the area."
She added that it "remains business as usual" at The Centrepoint in terms of its retail offerings.
A total of 151 retail units, including those along The Centrepoint’s front facade facing Orchard Road, were not included in the en bloc sale.
The Centrepoint opened in 1983 as Centrepoint. In its heyday, teenagers - coined "Centrepoint Kids" - gathered in droves at the mall. A fifth-storey corridor at the mall was also a hotspot for breakdancers.
The complex housed several well-known local brands, including Cold Storage and Robinsons, both of which have since exited the mall.
