SOME 61 per cent of Upper Serangoon Shopping Centre has been put up for sale by its owner, who is asking for $35-37 million for the stake.

SOME 61 per cent of Upper Serangoon Shopping Centre has been put up for sale by its owner, who is asking for $35-37 million for the stake.

The price works out to an average of $595 to $629 per square foot (psf) over available floor area.

The 61 per cent share is made up of strata-titled units consisting of 66 shop units out of a total of 164, as well as the sole office unit and all eight apartments. The properties for sale have a total strata floor area of 58,750 sq ft.

Transacted prices of commercial units in the vicinity for this year are in the range of $600-770 psf, said Credo Real Estate, which is marketing the project.

The stake is being sold by the original developer of the building, Hong Huat Development Co, which is now in voluntary liquidation.

The property firm was previously trying to get owners holding at least an 80 per cent share value in the shopping centre to agree to a collective sale. But BT understands that the majority owner decided to go ahead and sell the 61 per cent stake rather than to wait.

Credo said that there is still an opportunity for an en bloc sale together with other proprietors who may be keen to explore the possibility.

The buyer can also embark on a refurbishment scheme to spruce up the units for potential higher rentals, the firm added.

The ageing Upper Serangoon Shopping Centre is a six-storey commercial and residential development on Upper Serangoon Road.

‘With its prominent visibility and good accessibility, Upper Serangoon Shopping Centre is an attractive investment to serious investors looking for higher returns compared with those of the residential properties,’ said Credo.

The area consists mainly of conventional landed housing and low to mid-rise residential and shophouse developments.

The tender for the property will close on Oct 17 at 2.30 pm.

Source : Business Times - 19 Sep 2007