Katong Shopping Centre up for en bloc sale at S$638 million

SINGAPORE: Katong Shopping Centre has been put up for collective sale at S$638 million (US$478 million), real estate consultancy Edmund Tie said in a news release on Tuesday (Apr 18).

Located in District 15, the freehold property sits on a corner land plot of 86,924 sq ft, facing both Mountbatten Road and Haig Road. 

The existing building currently comprises a 7-storey podium block and a 5-storey annex block, accommodating a total of 425 strata shop and office units, and a privately held carpark. The total gross floor area of the development is approximately 280,000 sq ft, reflecting a gross plot ratio of 3.223.

Under Master Plan 2019, Katong Shopping Centre is zoned for commercial and residential use at a gross plot ratio 3.0. The site can be redeveloped into a landmark integrated development at its existing plot ratio of 3.223, with the option of converting the residential component into serviced apartments, subject to authorities’ approval.

The guide price of S$638 million translates to S$2,277 per square foot per plot ratio (psf ppr) over its existing gross floor area.

Sole marketing agent Edmund Tie said that this marks the third en bloc attempt by Katong Shopping Centre. On the previous two occasions in 2016 and 2017 - both handled by Cushman & Wakefield - the reserve price was set at S$630 million. 

Edmund Tie's head of investment advisory Swee Shou Fern said: "The amenity-rich East Coast precinct has been one of the most desirable residential enclaves in Singapore and Katong Shopping Centre presents a rarely available freehold mixed-use redevelopment opportunity in this vicinity.

"The new integrated development will benefit from its prominent 210m dual-street frontage, with its commercial component serving a wide catchment of more than 6,000 private housing units within a 500m radius of Katong Shopping Centre," she said, adding that there is no restriction on foreign ownership of the site.

Nearby residential developments include The Shore Residences, Amber 45, Silversea, The Esta, One Amber and the upcoming Tembusu Grand, among others. The Marine Parade MRT station on the Thomson-East Coast Line is about 500m away.

Interested parties have until 3pm on May 19 to submit their offer.