Singapore’s biggest commercial real estate transaction in Q3 revealed

It was a deal worth S$908.0 million.

According to a Savills report, commercial real estate investment sales in Singapore totalled S$1.69 billion in Q3/2023, making up 23.7% of the overall investment sales. This was up by 62.2% QoQ on the back of two big-ticket block transactions, all this despite having fewer deals done. 

Here’s more from Savills:

The biggest block transaction in the reviewed quarter was the S$908.0 million collective sales of Far East Shopping Centre to Glory Property Development, a company linked to Bright Ruby Resources and Chinese businessman Du Shuanghua. Sitting on a 36,014 sq ft site zoned for commercial use, this 999-year leasehold commercial property has an existing gross floor area (GFA) of about 242,145 sq ft. The deal is subject to certain conditions, including approval from the Urban Redevelopment Authority (URA) for up to 20% more GFA under the government’s Strategic Development Incentive (SDI) scheme for redevelopment. 

The second most expensive deal is Frasers Centrepoint Trust’s divestment of Changi City Point, a shopping mall located in Changi Business City, to an undisclosed third party in August. The divestment consideration of S$338 million translates to a unit price of S$1,621 psf based on the net lettable area of around 208,453 sq ft and an exit yield of 4.31% based on the net property income for FY2022. 

In Q3/2023, because of the widening bid-ask price gap and limited available properties for sale, the buying activity of strata-titled commercial units and shophouses slowed from a quarter ago. Some notable deals include two ground-fl oor retail units at 15 Scotts (S$31.1 million), a pair of corner shophouses at Ann Siang Road (S$32.0 million), three adjoining shophouses at Jalan Besar (S$38.5 million) and Angsana House at Cheong Chin Nam Road (S$41.0 million).