Golden Mile Complex gets $700m collective sale offer from Far East Organization, Perennial Holdings

Golden Mile Complex was put up for collective sale last year at a reserve price of $800 million. PHOTO: ST FILE

Updated from : The Straits Times, 30 Mar 2022

An offer of $700 million has been made for Golden Mile Complex in Beach Road, following extensive private treaty negotiations for the iconic development, which was put up for collective sale last year at a reserve price of $800 million.

According to a March 28 letter to the owners of Golden Mile Complex seen by The Straits Times, the collective sale committee (CSC) has entered into a conditional agreement with a consortium comprising Far East Organization and Perennial Holdings.

The tender for Golden Mile Complex closed on Feb 28.

“As the offer price is less than the reserve price and the independent valuation at the tender close, the collective sale agreement must be revised to allow the CSC to proceed with the sale of Golden Mile Complex at the offer price,” according to the letter.

A meeting with marketing agent Edmund Tie will be held on April 7 for owners of the 718 strata-titled units to get information on the outcome of the tender and details of the offer. Those unable to make that meeting can attend another on April 9.

In response to queries from ST on Wednesday (March 30), Ms Koh Kah Sek, executive director and chief financial officer of Far East Organization, said: “We regularly explore and seek investment opportunities in quality assets, at times integrating strengths together with two or more business partners. 

“However, we are not able to comment on the details of the transaction now as the bid process is still ongoing,” she added.

A Perennial Holdings spokesman said that the integrated real estate and healthcare company “regularly explores quality real estate investment opportunities in our core market of Singapore and may collaborate with partners with synergistic objectives and strengths”. 

“As the bid process is ongoing, we can only comment at an appropriate juncture,” she said.

Edmund Tie did not respond to queries by press time on Wednesday.

Golden Mile Complex, which was gazetted as a conserved building in October last year, is making its second bid at a collective sale after its previous attempt at $800 million ended with no bids in 2019.

The 16-storey building has 47 years left on its lease.

At $800 million and depending on the proposed use mix, the indicative land rate worked out to about $1,350 per sq ft per plot ratio, including differential premium and lease upgrading premium payable.

There is no additional buyer’s stamp duty payable for buying the site as Golden Mile Complex is zoned for commercial use. There are also no restrictions on foreign ownership.

Golden Mile Complex was completed in 1973, and is the first modern, large-scale strata-titled development conserved here.

Known for its Brutalist architectural style, signature building features include its step terrace, slanted beams and “floating” staggered staircases.

The site will have a maximum potential gross floor area of 81,000 sq m.

In return for developers abiding by the conservation guidelines, the Urban Redevelopment Authority is offering additional planning incentives, including allowing developers to build a new 30-storey tower block beside the main conserved building.

The site boundary may also be extended to include part of adjacent state land to allow for design flexibility, while tax incentives will be provided, lowering development costs.

“The incentive package is unique to Golden Mile Complex, as its conservation is the first of its kind, another pioneering endeavour,” Minister for National Development Desmond Lee said in October last year when he announced that the building had been conserved.

“We hope that developers will consider the potential of the site, alongside our vision to rejuvenate a national icon,” the minister added.