SINGAPORE – Katong Shopping Centre has been relaunched for collective sale at the same reserve price of $638 million, after its recent bid closed in May without a sale.

This makes it the fourth attempt to sell en bloc for the owners of the freehold shopping centre, which opened in 1973. The development was first put up for sale in 2016 and 2017 at $630 million.

At the current reserve price of $638 million, the deal would translate to a land rate of $2,277 per sq ft per plot ratio over its existing gross floor area (GFA), said marketing agent Edmund Tie & Company.

Located in District 15, the shopping centre occupies a corner land plot of 86,924 sq ft, with dual road frontage in Mountbatten Road and Haig Road. A gross plot ratio of 3.223 gives the site a total GFA of approximately 280,000 sq ft.

The mixed-use development houses a seven-storey podium block and a five-storey annex block, with a total of 425 strata shop and office units, and a privately held carpark located on levels three and four.

Under the Urban Redevelopment Authority’s Master Plan 2019, Katong Shopping Centre is zoned for commercial and residential use at a gross plot ratio of 3.0. Edmund Tie said the site can be redeveloped into a mixed-use development at its existing plot ratio of 3.223.

There is also the option to convert the residential component into serviced apartments, subject to the authorities’ approval.

Ms Swee Shou Fern, head of investment advisory at Edmund Tie, estimated that the new development can accommodate about 156 residential units, based on the average size of 1,076 sq ft. Meanwhile, the retail component for the new development can take up to 112,000 sq ft in GFA.

The upcoming Marine Parade MRT station on the Thomson-East Coast Line is about 500m away from the development. The tender for Katong Shopping Centre will close on Aug 14. THE BUSINESS TIMES