Golden Mile Tower sellers in private treaty talks after $650m collective sale tender closed

Golden Mile Tower comprises 405 strata lots, with a total of 251 retail units, 152 office units, a cinema and a carpark. ST PHOTO: CHONG JUN LIANG

SINGAPORE – The collective sale tender for Golden Mile Tower, which was launched at an asking price of $650 million, closed on Monday with a few expressions of interest, The Straits Times understands.

This price translates to $1,550 per sq ft per plot ratio. The sellers of the leasehold commercial development at 6001 Beach Road will be in talks with several parties for private treaty negotiations over the next 10 weeks.

The 22-storey, 54-year-old building comprises 405 strata lots – a total of 251 retail units, 152 office units, a cinema and a carpark with 540 parking spaces – and has 45 years left on its lease.

Marketing agent ERA Realty told ST that owners of the retail units stand to receive between $400,000 and $16 million for each unit, while office unit owners stand to get between $587,000 and $13.5 million per unit.

Golden Mile Tower was launched for collective sale in November 2022, following the successful $700 million collective sale in the same year of neighbouring Golden Mile Complex.

The development has a plot size of 8,727 sq m and a gross floor area of 38,953.72 sq m. There is no additional buyer’s stamp duty payable as it is zoned for commercial use. There are also no restrictions on foreign ownership.

The property was completed in 1974, one year after Golden Mile Complex, which is the first modern large-scale strata-titled development to be gazetted for conservation in 2021. The complex’s collective sale to a consortium comprising Far East Organization, Perennial Holdings and Sino Land for $700 million was completed in 2022, and vacant possession of the development will be handed to the developers in May 2023.

Mr Steven Aw, a managing partner of Happy Philatelic Agency, which opened in the 1970s, said he has no plans to move his shop because he is not sure if the deal will materialise.

“They will have to get the 80 per cent mandate again if the bid falls below the reserve price. And even if… successful, it may take a year or so to be completed,” he added.

Considering the selling points of the site, Mr Wong Xian Yang, head of research at Cushman & Wakefield, noted that the Beach Road/Ophir-Rochor corridor was a city-centre location and near MRT stations and expressways.

“The area is transforming into a destination for work, live and play – with a slew of new developments such as Guoco Midtown, Shaw Tower and the redevelopment of Golden Mile Complex,” he said.

“Source:[Golden Mile Tower sellers in private treaty talks after $650m collective sale tender closed] © Singapore Press Holdings Limited. Permission required for reproduction”

Leave a Reply

Your email address will not be published.