The **Singapore mall deal** has reached a major milestone as Frasers Property, controlled by Thai billionaire Charoen Sirivadhanabhakdi, finalized its purchase of a significant portion of The Centrepoint for S$392 million ($310 million). This strategic acquisition paves the way for future redevelopment amid a property boom in the city-state, positioning Frasers Property for long-term growth in the coveted Orchard Road shopping precinct.
The Deal
The Singapore-listed developer is acquiring the remaining portion of the seven-story rear block of The Centrepoint, its flagship retail complex. This encompasses 66 residential apartments and 66 retail units. The deal values the rear block at S$2,577 per square foot, based on the property’s maximum plot ratio and leasehold top up, according to a company statement. Prior to this transaction, Frasers Property held a 52% stake in the rear block, which sits on a 99-year leasehold land with a remaining lease of 52 years. The company also owns approximately 96% of the main mall, situated on a freehold plot fronting Orchard Road, and 51 Cuppage Road, a 10-story office building connected to the mall.
Frasers Property’s Strategy
Soon Su Lin, CEO of Frasers Property Singapore, emphasized the strategic importance of the acquisition.
“We are pleased to strengthen our ownership of The Centrepoint. This gives us greater flexibility to unlock the site’s long-term potential, including assessing broader rejuvenation plans for the area.”
The Centrepoint’s rear block occupies a land area of approximately 44,700 square feet (4,153 square meters), presenting redevelopment opportunities. Savills Singapore, which brokered the deal, noted that the site could be redeveloped into a 10-story building with a maximum gross floor area of 250,320 square feet, based on an allowable plot ratio of 5.6. Frasers Property would need to invest an additional S$253.1 million to restore the lease to 99 years and redevelop the property to the maximum plot ratio.
Redevelopment Potential
Vijay Natarajan, an analyst at RHB Singapore, views the acquisition as a strategic move to redevelop The Centrepoint into a mixed-use property. This could potentially include residential, serviced apartment, and retail components. He anticipates that the entire complex will be redeveloped, leveraging government incentives to maximize its value. This **Singapore mall deal** is a testament to Frasers Property’s vision for a modern, integrated development in the heart of Orchard Road.
Market Dynamics
Frasers Property’s move to consolidate its ownership of The Centrepoint comes amid robust demand for commercial properties in Singapore. Other property owners are also capitalizing on investor appetite. Royal Holdings, controlled by property tycoon Raj Kumar and his son Kishin RK, put up for sale a cluster of shophouses near The Centrepoint in January. Additionally, OUE Commercial REIT, controlled by Indonesian tycoon Mochtar Riady and his family, is seeking buyers for One Raffles Place, a prominent skyscraper in the Singapore central business district. These transactions reflect the vibrant and competitive nature of Singapore’s real estate market.
Charoen Sirivadhanabhakdi’s Empire
Charoen Sirivadhanabhakdi, with an estimated net worth of $12.2 billion, is a prominent figure in the Thai business landscape. Beyond his controlling stake in Frasers Property, his diverse portfolio includes interests in Thai Beverages (the maker of Chang Beer), packaging company Berli Jucker, and Thai property developer Asset World. His strategic investments and business acumen have solidified his position as one of Thailand’s wealthiest individuals. Learn about more success stories.
Looking Ahead
The successful completion of this **Singapore mall deal** underscores Frasers Property’s commitment to strategic growth and its confidence in Singapore’s real estate market. By consolidating its ownership of The Centrepoint, the company is well-positioned to unlock the property’s full potential and create a landmark mixed-use development. This transaction not only strengthens Frasers Property’s portfolio but also contributes to the ongoing evolution of Orchard Road as a premier shopping and lifestyle destination. The **Singapore mall deal** is poised to transform The Centrepoint and enhance its value for years to come.
