Singapore’s The Arcade property will be put up for a collective sale via tender for a reserve price of S$780 million, Colliers International said Wednesday.
The 20-storey office and retail property, located at 11 Collyer Quay in District 1, has an around 2,035 square meter site with a 999-year land tenure, starting from the year 1826, Colliers said in a statement.
“The Arcade has a fantastic location in the heart of the CBD. It is highly visible and attracts heavy pedestrian traffic,” Moeez Hatim Nakhoda, chairman of The Arcade Collective Sale Committee, said in the statement.
“Unfortunately, the building is ageing and fallen behind the times. As Raffles Place continues to evolve and surrounding buildings undergo revamp, the owners feel that it is time that The Arcade gets a complete makeover as well,” he said.
The site could be redeveloped into an integrated development, comprising a hotel, residential units, office and retail space, the statement said.
“Given its prime location in the city center, proximity to wide-ranging amenities, and excellent transport connectivity, the site boasts great potential for the development of a mixed-use project,” Colliers said. “The developer could potentially redevelop the site to offer a 50-storey iconic, modern skyscraper, with panoramic views of the Marina Bay, and spectacular skyline of the new Downtown.”
Tang Wei Leng, managing director at Colliers International, said she expected investor interest in Singapore’s commercial real estate to remain robust due to the city-state’s status as a global financial hub and stable political environment.
“Within Raffles Place, there are probably no other redevelopment opportunities and we believe The Arcade site, with a 999-year land tenure, will be highly sought-after,” she said.
The Arcade currently has 127 office and retail units, and depending on the size of their property, each owner could receive between S$700,000 to S$29.9 million from a successful sale, Colliers said.
The tender will close on 8 January.