For Singapore’s real estate market, the combined sale of High Street Centre marks a noteworthy turning point. The marketing agent for the mixed-use development, Cushman & Wakefield (C&W), has confirmed that the 80% mandate needed to move on with the collective sale at a lowered price of $678 million has been obtained.
The notice arrived in a letter dated August 7, directed to the strata-titled property owners. Sent on behalf of Legal Solutions LLP and the High Street Centre Collective Sale Committee, the letter signals a turning point in the long-running selling process.
From the reserve price of $748 million, the current offer price of $678 million shows a 9.4% drop. C&W claims that at least 80.27% of owners by share value and 88.38% by strata area have fully signed the additional joint agreement, therefore enabling the sale to proceed at the reduced price.
Although the buyer’s name is still unknown, C&W confirmed that on July 31 an initial deposit of 1%, or $6.78 million was due. Still, “heightened regulatory vigilance on fund movements” caused delays for the payment. The buyers have paid a second token payment of $100,000 as a demonstration of good faith, therefore adding the total deposit to $200,000.
In the letter C&W said, “We understand that once the purchasers’ bankers manage to satisfy regulatory measures, the monies will be remitted, and all necessary payments will be up to date.” As a result, the sales process’s schedule has been prolonged by four to five weeks to allow the buyers the opportunity to move money from the United States.
The marketing agent also said that the remaining 1% payment of $6.58 million is likely to be paid on or before September 5. The collective selling committee has to seek for approval with the Strata Titles Board by October 2 after this deposit is acquired.
Should the agreement go through, High Street Centre would become the biggest collective sale in Singapore this year, topping the transaction between Delfi Orchard and City Developments Ltd in May. The $678 million deal is successful.
Following failed offers in June 2020, May 2021, and October 2023, this represents the fourth collective sale effort for High Street Centre. Built in 1974, the 29-storey development consists in 429 strata-titled retail, commercial, and residential spaces on a 60,299 sq ft property with about 44 years left on its 99-year lease.
Senior director of capital markets Christina Sim of C&W pointed out that although High Street Centre is zoned for commercial use, it provides flexibility for including hotel or serviced apartment elements in a possible renovation.
Stakeholders will be closely observing the following actions in this major real estate transaction as the collective sale process progresses, therefore potentially changing a major portion of Singapore’s urban scene.
