With an asking price of $780 million, the owners of The Arcade in Collyer Quay are making a second attempt at the collective sale process. The new price is about 10% lower than the previous $868 million which was made in 2014. The new $780 million price tag translates to a land rate of $2,833 psf.
New asking price for The Arcade 10% lower
The Arcade has a longstanding presence in the Central Business District (CBD) and it currently comprises of 127 office and retail units. The building is however now 40 years old and has slightly “fallen behind the times” in relation to the many other newer and larger projects in the area.
Should the sale be successful, each unit-owner could stand to receive between $700,000 to $29.9 million depending on the size of the unit.
The Arcade currently sits on a 2,035 sq m or 21,909 sq ft site and has a 999-year leasehold tenure which began on April 20, 1826. While the 20-storey office and retail property is zoned for commercial use and has a gross plot ratio of 15, under the URA Draft Masterplan 2019, there is potential for the development of an integrated project which comprises of residential units, a hotel as well as office and retail spaces.
The site boasts panoramic views of Marina Bay and Downtown Skyline
Located near the waterfront, a hypothetical 50-storey skyscraper on this site would be able to boast of panoramic views of Marina Bay as well as the new Downtown Skyline. It also has a frontage facing Raffles Green, the Raffles Place MRT station and Collyer Quay.
Raffles place is a historic site and very much the heart of the CBD. As the sale of properties in the Raffles Place area are few and far in between, analysts believe that investors will show suitable interest in The Arcade site. The collective sale tender closes at 3 pm on Jan 8, 2020.