Chinese steel magnate Du Shuanghua will buy a shopping center in Singapore
Chinese steel magnate Du Shuanghua is doubling down on investments in Singapore, with his investment vehicle Glory Property Development making the highest bid of about S$910 million ($666 million) to acquire the Far East Mall, one of the oldest commercial properties on Orchard Road. commercial belt, according to local media.
The transaction, negotiated by CBRE, is subject to certain conditions, including approval from the Urban Redevelopment Authority to increase the gross floor area of the property by up to 20 percent, the Business Times reported Thursday. The Strata Titles Board must also approve the deal because the sale was not unanimously approved by Strata unit owners, according to the report. CBRE declined to comment on the deal.
The 15-storey Far East Shopping Center, built in 1974, is located on a leasehold site of approximately 36,000 square meters with a term of 999 years. With an existing built-up area of approximately 22,000 square meters, the property houses approximately 600 shops on the first five floors, as well as offices on the top ten floors.
The property could be built to a maximum gross floor area of 290,000 square meters if the URA approves the additional space as part of the government’s strategic development initiative for older buildings. The buyer can redevelop the property into a mixed-use office, hotel, or retail complex, CBRE said.
The acquisition comes a year after Ever Glory, another investment vehicle of Du’s Bright Ruby Resources, bought a prime office building in the Raffles Place CBD for S$1 billion. Bright Ruby also bought the former Grand Park Orchard hotel and retail space for S$1.15 billion a decade ago and has since transformed it into the 308-room Pullman Orchard, which opened in December 2022.
Du joins several Asian tycoons who are deepening their investments in Singapore, particularly near Orchard Road, which the government wants to rejuvenate by encouraging investors to redevelop several aging buildings in the area. Right next to the Far East Mall, tycoon Ong Beng Seng’s Hotel Properties plans to redevelop the Voco Orchard Hotel, along with two adjacent properties, into a large mixed-use hotel, office, retail and residential complex that analysts say will generate big money costs. maximum 2 Singapore dollars. billion to build.
Nearby, Royal Group, controlled by Singaporean billionaire Asok Kumar Hiranandani, is redeveloping the Ming Arcade, an outdated shopping center on Cuscaden Road near Orchard Road, into a boutique hotel. Neighboring Indonesian tycoon Sukanto Tanoto is also planning to redevelop Tanglin Mall, which his company Pacific Eagle Real Estate bought last year for S$868 million.