Commonwealth _ High Street Centre, located at 1 North Bridge Road, has made its second collective sale attempt by re-entering the market through a public tender, with a revised reserve price of S$748 million. This new price represents a 6.5% reduction from its initial reserve price of S$800 million when it was initially put up for sale in mid-2020. The decision to relaunch the collective sale of High Street Centre was reached by the consensus of the property’s majority owners, who collectively hold over 80% of the strata area and share values within the development. Their agreement to lower the price from the initial reserve of S$800 million to the revised S$748 million resonates with the changing dynamics of the real estate market. It underscores their recognition of the need to adapt to evolving conditions and their eagerness to attract a suitable buyer for this prime property in the heart of Singapore.
High Street Centre’s appeal is further magnified by its favourable land tenure. The property is situated on a 99-year leasehold site, encompassing approximately 60,298 square feet. This site boasts a generous gross plot ratio of 7.72, which translates into a substantial total gross floor area (GFA) of 466,085 square feet. This acreage, in the heart of Singapore, positions the High Street Centre as a prime canvas for a diverse array of commercial and mixed-use developments. The strategic location of the High Street Centre, coupled with its potential for flexible utilization, makes it a coveted investment prospect. As Singapore’s real estate landscape continues to evolve, this property stands as a testament to adaptability and resilience in the face of changing market dynamics. The lowered reserve price offers a compelling opportunity for prospective developers and investors to harness the property’s prime location and expansive potential, contributing to the dynamic real estate scene of Singapore.
Cushman & Wakefield, the appointed property consultant, has indicated that the Urban Redevelopment Authority (URA) is amenable to dedicating a substantial portion of the site’s GFA, at least 60%, for commercial purposes. This could encompass a dynamic blend of office spaces and retail establishments, including food and beverage outlets. Such usage could further enhance the vibrancy of the area and cater to the demands of both local and international businesses. The remaining 40% of the GFA allocation offers diverse possibilities. It can be earmarked for the redevelopment of a hotel, which would have a maximum capacity of 450 keys, or alternatively, for residential or serviced apartment use. This flexibility in usage aligns with Singapore’s ever-evolving real estate landscape, offering opportunities for a variety of developments to cater to different market segments.
At the revised reserve price of S$748 million, the property is priced at approximately S$2,164 per square foot per plot ratio if the buyer opts to allocate the 40% quantum for residential use. This could open up possibilities for creating a vibrant residential complex in a central location. However, should the buyer choose to utilize the same quantum for hotel purposes, the price would be approximately S$2,290 psf ppr. This would include the payment of a land betterment charge as well as a premium for extending the lease to a fresh 99 years, ensuring a long-term investment in Singapore’s property market. The relaunch of the High Street Centre for collective sale with a reduced reserve price of S$748 million reflects the adaptability and resilience of the Singapore real estate market. The property’s central location and the potential for diverse usage, whether for commercial, residential, or hotel purposes, make it an enticing opportunity for developers and investors looking to capitalize on the dynamic and ever-evolving real estate landscape of Singapore.
