Part of The Centrepoint, an Orchard Road landmark, enters collective sale market at $418 mil
A portion of The Centrepoint on Orchard Road has entered the collective sale market for the first time, with a guide price of $418 million (Photo: Samuel Isaac Chua/EdgeProp Singapore)
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A portion of The Centrepoint on Orchard Road has entered the collective sale market for the first time, with a guide price of $418 million, marking the first collective sale launch of the year.
The seven-storey shopping mall — which includes two basement levels and a residential component comprising 66 apartments — was developed by Frasers Property (then known as Frasers Centrepoint) and opened in May 1983.
What is unusual about The Centrepoint is that the property spans two adjoining land parcels of different tenures. The freehold plot at 176 Orchard Road has prominent frontage along Orchard Road, comprises 151 retail units, and is majority owned by Frasers Property. The 99-year leasehold, L-shaped portion at 176A Orchard Road comprises 132 strata units — 66 retail units and 66 apartments.
The portion of The Centrepoint that is up for collective sale is the 99-year leasehold portion on the L-shaped site, with 132 strata units -- 66 retail and 66 apartments (Picture: Savills Singapore)
Leasehold portion up for sale
This leasehold portion is the one being offered for sale, with the Management Corporation Strata Title (MCST) putting all 132 units on the market at a guide price of $418 million.
The guide price translates to $2,709 psf ppr, after factoring in a land betterment charge (LBC) of $260 million to top up the lease to a fresh 99 years and intensify the site to a plot ratio of 5.6.
According to Jeremy Lake, managing director of investment sales and capital markets at Savills Singapore, which is handling the tender, it took about 12 months to secure the 80% owners’ consensus required for the collective sale to proceed.
“It presents a rare opportunity for investors to acquire a strategically located Orchard Road development with a prestigious address along Singapore’s most iconic shopping belt,” says Lake.
He adds that developers have been bidding aggressively for government land sales (GLS) sites. “Some of them will be keen to buy a part of The Centrepoint.”
Site potential
The 99-year leasehold site has a land area of around 44,700 sq ft. Under the 2025 Master Plan, it is zoned “Commercial” with a gross plot ratio of 5.6 and a height control of up to 10 storeys.
According to the Singapore Land Authority, the property has a verified development baseline of 171,482 sq ft (plot ratio of 3.83), with a maximum allowable gross floor area of 250,320 sq ft.
The private apartments at The Centrepoint occupy levels four to seven and range from one- to three-bedroom units, with sizes between 732 sq ft and 3,003 sq ft. These residential units are held on a 99-year lease commencing from 1979.
The private apartments at The Centrepoint occupy levels four to seven and range from one- to three-bedroom units, with sizes between 732 sq ft and 3,003 sq ft. These residential units are held on a 99-year lease commencing from 1979.
Frasers Property’s 52% stake
All 66 retail units within the leasehold component are wholly owned by Frasers Property, which also owns eight of the 66 apartments. Taken together, this gives Frasers Property a 52% stake by strata area and share value.
The developer also owns 100% of the neighbouring property at 51 Cuppage Road — a 10-storey office building with a net lettable area of 72,810 sq ft. The 99-year leasehold building is linked to the leasehold portion of The Centrepoint via a second-storey link bridge, offering potential for a combined redevelopment in the future.
The Centrepoint is also connected underground to Somerset MRT Station and to malls across Orchard Road, including Orchard Central, Orchard Gateway, and 313@Somerset.
Past collective sale attempt
The strata owners previously attempted a collective sale more than a decade ago but failed to secure the required 80% consent.
The most recent transaction at The Centrepoint involved a 743 sq ft one-bedroom apartment that changed hands for $2.158 million ($2,906 psf), based on a caveat lodged in November 2024.
In May last year, SRI offered a portfolio of seven apartments for sale by tender at a collective price of $18.68 million. The units, ranging from 732 sq ft to 1,173 sq ft, were also available for individual purchase.
The portfolio formed part of a receivership sale, where a court-appointed bank was tasked with disposing of the assets to recover outstanding loans. However, the units were not sold at the close of the tender in June.
According to the Singapore Land Authority, the property has a verified development baseline of 171,482 sq ft (plot ratio of 3.83), with a maximum allowable gross floor area of 250,320 sq ft (Source: SLA)
Track record of Orchard Road collective sales
Lake is confident that the eventual sale price could exceed the $418 million guide price, citing his track record brokering several landmark collective sales along Orchard Road.
The two most recent deals were the sale of Concorde Hotel & Shopping Mall to Hotel Properties Ltd for $821 million ($1,804 psf ppr) in November 2024 and Delfi Orchard to City Developments Ltd for $439 million ($3,346 psf ppr) in May 2024.
Earlier transactions include the en bloc sale of Tanglin Shopping Centre to Pacific Eagle Real Estate — a Singapore-based real estate firm belonging to Indonesia’s Tanoto family — for $868 million ($2,769 psf ppr) in February 2022, and Ming Arcade to local billionaire property developer Asok Kumar Hiranandani of Royal Group of Companies for $172 million ($3,125 psf ppr) in December 2022.
As The Centrepoint’s site is zoned for Commercial use, there are no restrictions on foreign ownership. The collective sale was launched for public tender on Jan 7, with the tender closing on Feb 26.
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