Chinese tycoon Du Shuanghua’s Glory Property buys Far East Shopping Centre en bloc for about $908 mil

Du Shuanghua’s Far East Shopping Centre purchase for $908 million sets new record for Orchard Road

Chinese steel tycoon Du Shuanghua has made yet another major real estate purchase in Singapore – this time, Far East Shopping Centre via his investment vehicle Glory Property Development, an entity under Bright Ruby Resources. The value of the purchase is around $908 million, working out to approximately $3,350 psf per plot ratio (psf ppr), based on the potential gross floor area of 290,574 sq ft under the Strategic Development Incentive (SDI) scheme offered by URA.

Michael Tay, head of Singapore capital markets, CBRE, who brokered the sale, commented, “We are glad to find the right buyer for Far East Shopping Centre. This is someone who has invested in overseas properties in major cities around the world, such as Paris, Sydney and Tokyo, and will be able to bring such expertise to Singapore in the rejuvenation of Orchard Road.”

The Senja Residences comprises of 13 seven-storey blocks, comprising 810 units. There are a total of six types of units, from one bedroom to five-bedroom dual-key units. The clever layout and design maximises the space and provides plenty of storage options.Facilities in the condominium are plentiful. The 50m lap pool, sky gym, BBQ pavilions, tree houses, and playgrounds provide a host of activities for all. There is also a well-equipped clubhouse with a reading room, a function room, and a karaoke area.This collection of premium residences is developed by an experienced developer, and this prestigious development has been awarded the BCA Green Mark Award for its emphasis on green living.

Bright Ruby Resources has been a forward-thinking investor, focusing largely on prime assets in major cities. Ten years ago, they paid a whopping $1.15 billion for the former Grand Park Orchard and its retail podium, Knightsbridge. They also purchased the Marriot Champs-Elysees in Paris for US$464 million in 2014 and the Hilton Hotel in Sydney for US$364 million the following year. In late 2019, they bought the Westin Hotel Tokyo for US$870 million.

READ ALSO: Ong Beng Seng’s HPL wins go-ahead to redevelop Orchard Road properties

The repositioning of Grand Park Orchard is a case in point. An extensive asset enhancement exercise was undertaken and the property re-opened in 202 as the 308-room Pullman Singapore Orchard, managed by Accor Group. The prime retail space previously occupied by lifestyle retailer Abercrombie & Fitch at the former Knightsbridge reopened last year as Singapore’s largest Adidas store. Other retail tenants include the Apple Store, Rolex, The Hour Glass and Ritual Gym.

The URA has identified Far East Shopping Centre along with five other buildings on the stretch of Orchard Road – between Cuscaden Road and Orchard Boulevard – to be redeveloped into “a new exciting destination.” Through Glory Property, Du will likely reposition the asset into a commercial offering with a mix of uses – from retail, hospitality, office to residences.

Besides an increase in GFA, the new owners will have flexibility in land use and building height. There will also be a direct underground pedestrian link from Orchard MRT Station, significantly increasing footfall to this part of Orchard Road, stated Tay.

Far East Shopping Centre, which sits at 545 Orchard Rd with a 75m frontage along Orchard Road and a 55m frontage along Angullia Park in prime District 9, has surpassed the previous record set by Ming Arcade at $172 million or $3,125 psf ppr. Savills Singapore brokered the deal. The buyer is the Royal Group of Companies, a family office controlled by Singapore billionaire Asok Kumar Hiranandani. The new development will be a luxury hotel.

Nearby, Tanglin Shopping Centre was purchased en bloc by Pacific Eagle Real Estate in February 2022 for $868 million ($2,769 psf ppr). The Singapore-based real estate investment and development firm of Indonesian billionaire Sukanto Tanato will also be redeveloped into a new mixed-use commercial development.

READ ALSO: CDL to sell all 85 strata lots in Tanglin Shopping Centre in collective sale

The URA rolled out the Strategic Development Incentive (SDI) Scheme in April 2021 to incentivise owners to redevelop their property and enjoy a 20% bonus gross floor area (GFA).

Hotel Properties Ltd (HPL) received the go-ahead from URA to redevelop its three properties along Orchard Road at the end of August and the rejuvenation of Orchard Road is well underway. The new mixed-use development will comprise a hotel, retail, office and residential components, a rooftop garden and a performance theatre.

The Far East Shopping Centre purchase has set a record for Orchard Road. Bright Ruby Resources is well-positioned to bring in its knowledge from previous projects in major cities around the world, and contribute to the continued vibrancy of Singapore’s iconic Orchard Road.
Read also: Far East Shopping Centre debuts collective sale at $928 million