City Plaza gunning for third time lucky with $970m collective sale attempt, hoping for CDL support

SINGAPORE - Owners of apartments and commercial units at City Plaza in Geylang are gunning for a mega $970 million collective sale attempt after two previous failed efforts, with many hoping that City Developments Limited (CDL) will bring its muscle to bear and get them the 80 per cent mandate required to launch the sale.

The Straits Times understands that CDL, which built the 18-storey freehold mixed-use development project in 1980, holds a 6.5 per cent share value, or several commercial units.

The collective sale committee (CSC), which has until Feb 14 to reach the required threshold, has secured 78.37 per cent support from owners by strata area, and 76.57 per cent by share value to date, said committee member James Cheng. He owns two commercial units.

To reach the mandate to launch the collective sale process, Mr Cheng said the CSC needs signatures from owners of 12 to 20 more strata units, based on share value and strata area, by Feb 14.

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 stand to get between $722,000 and $32 million, marketing agent Huttons Asia told ST.

“City Plaza remains a rare large-scale freehold, city-fringe commercial site. Subject to the requisite consent threshold being met, Huttons will submit an outline application as part of its advisory role to enhance planning clarity and assist potential bidders in assessing the site’s redevelopment parameters,” said Mr Terence Lian, Huttons Asia’s head of investment sales.

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.

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.

“Footfall is declining rapidly. We usually see a crowd during Chinese New Year, but not any more. Our business revenue is declining year by year. During the collective sale process, several major repair works were put on hold. If the sale does not go through, owners may soon have to restart these works, which will likely mean heavier maintenance contributions,” it said.

This is a worrying prospect for the owners, many of whom are in their 70s and 80s, and have held their units for decades, it added.

“We are seeing real anxiety among owners, who are worried about retirement, rising costs and what happens if the property continues to age without a renewal solution,” said Mr Francis Poh, chairman of the City Plaza CSC.

“We have seen how personal and urgent this (sale) has become for many. Some owners came down to sign despite frail health. Some arrived in wheelchairs,” he added.

Mr Poh, 73, who has been running a retail fashion shop at City Plaza for 45 years, noted that the market for older strata retail and commercial units has been weakening.

“We have seen softer rents, declining transaction prices and a resale market that is becoming more difficult.

“Rentals will worsen after the refurbished Tanjong Katong Complex reopens, (as) many City Plaza tenants have indicated that they will move over,” he said.

The redevelopment of Tanjong Katong Complex, which is a five-minute walk from City Plaza, is expected to be completed in 2027.

Property firm Elegant Group owns Tanjong Katong Complex and Kinex Mall, which is also in Geylang, as well as The Clementi Mall, Grantral Mall @ Clementi, Grantral Mall @ Macpherson, and Changi City Point.

In June 2025, the Singapore Land Authority awarded the Tanjong Katong Complex redevelopment contract to the group’s Jun Jie Development, with a top bid of about $90 million.

In a Feb 2 letter to CDL seen by ST, a group of owners said: “We recognise that CDL carries a fiduciary duty to its shareholders. However, we believe that supporting this collective sale aligns perfectly with CDL’s long-term strategic and ethical goals.

“City Plaza is a cornerstone of the Paya Lebar Central precinct. Its rejuvenation is essential to the Government’s Master Plan, and CDL is uniquely positioned to lead this transformation.”

Mr Poh added: “We hope that CDL sees this as part of their social mission. If CDL signs now, we will cross the 80 per cent mandate immediately.”

In response to ST’s queries, a CDL spokesperson said: “We do not comment on private and commercially sensitive collective sale matters.”