Parkway Centre for sale for about $1,000 psf ppr

Source : Business Times - 16 Oct 2008

Price is 15% higher than Katong Mall, which was sold in July

PARKWAY Centre, which is controlled by Hong Kong-listed Far East Holdings International, has been put up for sale with an indicative price of about $160 million. This works out to about $1,000 per square foot per plot ratio, around 15 per cent higher than the $865 psf ppr for Katong Mall, which was sold in July.

Jones Lang LaSalle is marketing the site and its associate director (investments), David Batchelor, said that while the market is slowing down, he does expect a deal because Parkway Centre is one of only two private commercial developments available in Marine Parade Central for investors to consider. The other is Parkway Parade. Mr Batchelor added that local and foreign investors and private equity funds have already shown interest.

The 99-year leasehold Parkway Centre has three retail shop units and 107 office units. Mr Batchelor said that the retail rental is $25-30 psf per month and the office rental, $4-5 psf per month. Far East Holdings International (which is not related to Far East Organization here) owns 40 per cent of Parkway Centre. Mr Batchelor said that approval from 80 per cent of the stakeholders in Parkway Centre has been received.

Under the Master Plan, the 18,665 sq ft site is zoned for commercial use and has a gross plot ratio of up to 3.2. Based on the Written Permission dated Nov 21, 1985, it also has the potential to be redeveloped into an office-cum-retail development with a gross floor area (GFA) of up to 157,625 sq ft, subject to relevant authorities’ approval and payment of differential premium for the top-up of lease if applicable. The differential premium is estimated to be about $16.6 million.