Tuan Sing buys Katong Mall for $219m

Tuan Sing buys Katong Mall for $219m


TUAN Sing has clinched the collective sale of Katong Mall for $219 million, which works out to a land price of $865 per sq ft of potential gross floor area including an estimated $24.5 million payable to the state to top up the site’s lease to 99 years from a remaining 71 years.


In June, Tuan Sing did an asset swap with entities linked to its controlling shareholders – the Nursalim family – under which Tuan Sing got the Nursalims’ 72 per cent of share values in Katong Mall and the Nursalims took over a loan Tuan Sing had extended to Gul Technologies Singapore, which is now its associate company.


Jones Lang LaSalle, which handled the collective sale of Katong Mall, said Tuan Sing was the highest bidder. ‘There were a few other interested parties, some of whom placed bids and others submitted letters of interest,’ said JLL director (investments) Stella Hoh.


The collective sale, announced yesterday, is subject to approval from the Strata Titles Board. So far, owners controlling more than 80 per cent of share values in the property have agreed to a sale.


JLL launched the tender on May 27.


Tuan Sing is expected to either redevelop Katong Mall into a full retail project or to refurbish the existing property. The property has a 78,158 sq ft land area and is zoned for commercial use with a 3.6 plot ratio – the ratio of maximum potential gross floor area to land area. No development charge is payable for a full commercial development.


Tuan Sing, once an active player in the Singapore residential sector, owns three adjoining office blocks in the Central Business District – Robinson Towers, the annexe to that property, and International Factors Building.


Overseas, it is developing a condominium in Pudong, Shanghai, which is slated for launch by year-end.


Source: Business Times

Tuan Sing buys Katong Mall for $219m

Tuan Sing buys Katong Mall for $219m


PROPERTY group Tuan Sing Holdings bought Katong Mall for $219 million yesterday, in the first major collective sale of the year.

The four-storey complex of strata-titled shops and other businesses is the first fully retail site to be sold collectively, said marketing agent Jones Lang LaSalle (JLL).


The 78,158 sq ft site with a gross plot ratio of 3.6 went on sale at an indicative price of $220 million to $250 million.


Tuan Sing’s price values the land for the 99-year leasehold mall at about $865 per sq ft, including a lease top-up of $24.5 million.


It bought the mall through its unit Golden Cape Investments.


JLL investments director Stella Hoh told The Straits Times that ‘a few parties’ – including large and small property groups – entered bids and expressions of interest but she declined to reveal names.


Savills Singapore director for business development Ku Swee Yong said the sale was likely to be one-off and not indicative of a broader market trend, while Knight Frank director for research and consultancy Nicholas Mak said the deal was fairly priced given market conditions.


The mall went on sale in May amid some controversy.


Its public tender followed a contentious process from last September, when 35 minority owners claimed that they were not consulted in drawing up the collective sale deal.


They also took issue with the low reserve price – believed to be $180 million – and the fact that the sale was being conducted under the old rules and not the stricter new ones that took effect in October.


The owners also complained that two majority owners – Nustavino and Habitat Properties – had a potential conflict of interest as they were developers that could bid for the property. There were even questions raised during the tender launch over whether the consent of owners representing 80 per cent of the share value needed for the sale had been obtained.


Minority owner Robert Ong said the price was ‘above what we had expected’ but added that the minority owners could appeal against the sale to the Strata Titles Board.


Meanwhile, Tuan Sing already has a stake in the mall, obtained via an asset swop approved by its shareholders last month.


The mainboard-listed firm disposed of $107 million in loans owed by its associate Gul Technologies Singapore through an asset swop with the controlling shareholders of Tuan Sing for certain strata units in Katong Mall.


This involved 129 strata shop units with an aggregate purchase consideration of $63.1 million.


Tuan Sing said the deal allowed for a ‘realistic and tangible recovery of the loans, although it would have to recognise a partial write-down’ of about $44 million.


Source: Straits Times

Katong Mall sold to Tuan Sing Group for S$219m

Katong Mall sold to Tuan Sing Group for S$219m


SINGAPORE : Katong Mall has been sold in a collective transaction to property developer Tuan Sing Group for S$219 million.


Including a premium of S$24.5 million to top up the site’s lease, the price works out to about S$865 per square foot of gross floor area


The tender for the 99-year leasehold commercial development in the Marine Parade area was launched in May.


Katong Mall, located at the junction of East Coast Road and Joo Chiat Road, is currently a four-storey building with three basements.


Under the Master Plan, the 78,158 square foot site is zoned for commercial use.


It has a gross plot ratio of up to 3.6 with the allowable building height subject to evaluation.


Outline planning permission has been obtained for either a full commercial development or a mixed development with residential and commercial space.


The new development could yield some 100 residential units of 1,200 square feet each, and 185 commercial or retail units with an average size of 400 square feet. – CNA/ms


Source: Channel NewsAsia