SINGAPORE - An ageing Orchard Road landmark is on track to becoming the latest to throw its hat into the en-bloc ring.
The 170-odd owners of the strata-titled Tanglin Shopping Centre are making a third try for a collective sale, following previous attempts in 2011 and 2014. They will elect a sale committee at a meeting on Nov 3.
The 47-year-old building comprises a six-storey podium block of shops, eateries and medical suites, and a 12-storey tower block of offices.
For the building to be put on the market, owners of 80 per cent of the property - by both share value and strata area - must sign the collective sale agreement.
The first attempt at a collective sale in 2011 fell through when the reserve price of $1.25 billion was not met.
This would have worked out to about $4,200 per sq ft (psf) of potential gross floor area, assuming the 68,512 sq ft freehold site had been redeveloped.
The reserve price for the second attempt was $1 billion, or about $3,200 psf per plot ratio. But this attempt also fell through when owners failed to garner the consent levels required before the collective sale agreement expired.
Millennium & Copthorne Hotels, the hotel arm of Singapore-listed property group City Developments, holds the largest stake in the building at 34 per cent. It signed the second collective sale agreement in November 2013.
Mr Len Hoo, who was the sales committee chairman in the property's previous collective sale attempt, said he is keen to sell because maintenance costs are rising due to the building's age.
"The building is not in tip top condition and it's time to rejuvenate it," said Mr Hoo, who is the managing director of family firm C.T. Hoo which owns an office unit and a jewellery shop in Tanglin Shopping Centre.
After the sales committee is formed, another meeting will be held to appoint a marketing agent and lawyers for this latest collective sale attempt.
Tanglin Shopping Centre joins a recent slew of commercial properties looking to hop on the en-bloc bandwagon.
Collective sales committees have been formed at Goldhill Centre in Novena and Katong Shopping Centre in Mountbatten Road with both projects targeting to set a reserve price when their extraordinary general meetings are held next month.