City Plaza secures mandate for $970 million collective sale after two failed attempts

SINGAPORE – It was third time lucky for unit owners of City Plaza in Geylang after more than 80 per cent threw their weight behind

a $970 million offer

for the 18-storey freehold mixed-use project.

It is one of the largest commercial collective sale exercises in recent years.

A flurry of signatures came in the final 48 hours of a Feb 14 deadline for the collective sale agreement.

The collective sale committee (CSC) secured 83.05 per cent support from owners by strata area, and 81.26 per cent by share value, said marketing agent Huttons after the close of a statutory cooling-off period on Feb 24.

“This marks the strongest level of support attained so far for the City Plaza collective sale,” the CSC said.

To reach the required 80 per cent threshold to launch the collective sale process, the CSC had said it needed signatures from owners of 12 to 20 more strata units, based on share value and strata area, by Feb 14.

City Plaza’s first collective sale attempt was in 2018 at a reserve price of $1.05 billion, but it secured only 53 per cent support.

The second attempt in 2021, at a lower reserve price of $970 million, came close at 79.3 per cent support.

Mr Terence Lian, head of investment sales of marketing agent Huttons Asia, told The Straits Times that the future project “is envisaged as a hospitality-style accommodation concept that supports independent living, potentially complemented by lifestyle, wellness or service-oriented commercial components”.

But at this stage, the concept remains preliminary and is subject to planning review, he added.

Huttons plans to proceed with the submission of an outline application to seek planning clarity on permissible uses and overall development parameters so that any eventual scheme can be structured with greater certainty.

“We will move to tender once there is sufficient planning clarity to provide certainty to the market,” Mr Lian said.

City Plaza comprises 450 units – 384 strata retail units and 66 residences. Zoned for commercial use, it sits on a 13,146 sq m site, with gross floor area of 33,781 sq m.

Owners of the residential apartments stand to get between $2.18 million and $3.44 million each, while owners of the commercial units each can get between $722,000 and $32 million, Huttons Asia said.

According to the CSC, many owners are pinning their hopes on this third attempt as they have seen business in the ageing property dwindle and maintenance issues grow. The committee says the building has water leakages and escalators that frequently break down, and major structural repairs and upgrading works are needed.

This marks the first time City Plaza has secured the statutory mandate for a collective sale since efforts began in 2018, reflecting strong alignment among owners and a recognition of the site’s long-term redevelopment potential, Mr Lian said.

“Securing the 80 per cent mandate is a significant milestone for the owners. This achievement enables a more integrated planning approach for the site. Planning optimisation could allow for a refreshed commercial scheme that enhances land use efficiency and contributes positively to the surrounding city-fringe environment,” he added.

Commercial collective sale activity has picked up in recent months, with several developments preparing to launch new tenders for sale. They include

Tan Boon Liat Building

, which is eyeing a fresh tender in 2026 at a lower price of $1 billion after the asking price of $1.15 billion drew no bids.

Meanwhile, the market is watching for the outcome of the

$418 million tender for Centrepoint’s rear block

– comprising 66 strata retail units and 66 residential apartments – expected to close on Feb 26. Marketing agent CBRE did not respond when asked about the results of

Cuppage Terrace’s EOI exercise valued at $250 million

, which closed on Feb 12.