Far East Shopping Centre launches collective sale tender at $928 million

999-year commercial redevelopment site in the heart of Orchard Road for sale

Singapore, 24 July 2023 – CBRE is putting up for sale, by public tender, 545 Orchard Road (“the Site”), which offers developers an exceptional opportunity to acquire and develop an iconic building in the heart of Orchard Road, the most prime shopping belt in Singapore.

The 36,014 sq ft corner site has a land tenure of 999 years with effect from 1871 and is currently zoned for commercial use. Strategically located at the junction of Orchard Road and Angullia Park, the Site has a dual road frontage of approximately 130 meters. Under the 2019 Master Plan, the Site has an allowable gross plot ratio (“GPR”) of 4.9. The verified existing gross floor area (“GFA”) is about 242,145 sq ft, equivalent to a plot ratio of 6.72. 

The Site may participate in the Strategic development Incentive (SDI) scheme introduced by the Urban Redevelopment Authority (“URA”). In introducing the SDI scheme, URA’s intent was to encourage redevelopment of older buildings in the area to create a new, exciting destination in this part of Orchard Road. Should the respective owners meet URA’s redevelopment conditions, the owner(s) may be able to enjoy a maximum increase of 20% in GFA. If awarded the SDI, the maximum buildable GFA of 545 Orchard Road can potentially go up to approximately 290,574 sq ft which is equivalent to a plot ratio of 8.06. 

Orchard Road is one of Asia’s most iconic shopping and lifestyle districts and a popular tourist destination, spanning more than 2 kilometers. It is home to various international luxury brands, designer labels, high-street fashion, premier hotels, and an array of gastronomic and entertainment options. 545 Orchard Road is approximately 200 meters from Orchard Road MRT Station. Located in the heart of this iconic district, it is surrounded by major shopping malls as well as high-end hotels such as ION Orchard, Wisma Atria, Shaw House, Tang Plaza, Four Seasons Hotel and St Regis Hotel Singapore. 

At a guide price of $928 million, based on the maximum buildable GFA of 290,574 sq ft under the SDI Scheme, and assuming full commercial usage, this works out to be $3,421 per sq ft per plot ratio (psf ppr), inclusive of Land Betterment Charge. As the Site is currently zoned for commercial use, the successful bidder/s will not have to pay any Additional Buyers’ Stamp Duty. Under the SDI Scheme, the incoming buyer is required to engage in a joint integrated redevelopment with its adjacent sites. 

Mr Michael Tay (郑兆能), Head of Singapore Capital Markets, CBRE, said, “Far East Shopping Centre is the only commercial site currently available along Orchard Road for sale. The SDI Scheme proposes implementation of direct underground pedestrian links from the existing Orchard MRT Station and Thomson-East Coast Line Orchard MRT Station to the new integrated development. This will greatly enhance foot traffic to this part of Orchard Road. Developer(s) of the integrated development can also explore a combination of different land uses such as retail, hotel, office, MICE facilities and lifestyle uses under the said scheme.” 

Mr Tay adds “Orchard Road is a famous shopping district, and the Government has ongoing plans to further enhance Orchard Road as the go-to lifestyle destination which offers an extraordinary experience beyond retail. This includes introducing innovative retail concepts, more street activities and better pedestrian connectivity. The aim of the SDI scheme is to also expedite the rejuvenation of Orchard Road that will have a positive transformational influence at the area. 545 Orchard Road is strategically positioned to be part of the Government’s plan and we believe this opportunity will appeal to both local and foreign developers as the incoming buyer has the flexibility to create an iconic mixed-use development in the most prominent street in Singapore. Once completed, it will be a unique and exciting lifestyle destination on Orchard Road.”

The Site also offers seamless connectivity to other parts of Singapore, notably the central business district, which is only a 10-minute drive away.

The public tender for 545 Orchard Road will close on Wednesday, 20 September at 3.00 pm.