Chinatown Plaza has been sold for $260 million to a property unit affiliated to Singapore-based RGE (Royal Golden Eagle), the pulp and paper and palm oil giant founded by Sukanto Tanoto.

The price translates to a land rate of $1,915 per sq ft per plot ratio (psf ppr), said Edmund Tie & Company, which handled the collective sale.

Located in Craig Road, Chinatown Plaza has a land area of 33,953 sq ft and is zoned for commercial and residential use. The site has the potential to be redeveloped up to its existing gross floor area of 135,742 sq ft.

Outline planning permission for serviced apartments with commercial use has been granted by the Urban Redevelopment Authority.

Apartment owners are expected to receive gross sale proceeds of between $3.44 million and $4.79 million per unit, while shop owners can expect between $1.64 million and $10.62 million per unit.

"Such freehold mixed-use sites within the city are rarely available," said Ms Swee Shou Fern, senior director for investment advisory at Edmund Tie & Company.

"Given its city centre location in a popular and vibrant enclave within close proximity to MRT stations, the property is perfectly situated for use as serviced apartments. This development option will allow the purchaser to hold the invaluable freehold property for long-term investment."

RGE manages a group of resource-based manufacturing companies with global operations and assets exceeding US$18 billion (S$24.5 billion).