Post by oldmike on May 15, 2007 18:09:16 GMT 7
ORCHARD Towers and its infamous nightclubs could soon be a thing of the
past, should it become the latest along Singapore's premiere shopping belt
to feed the en bloc frenzy.
Today understands that early last month, the owners of the building - one
of the oldest shopping centres on Orchard Road - elected a sale committee
at its annual general meeting to study the possibility of a collective
sale.
The freehold property, which is well past its 30th year and made up of two
25-storey blocks, comprises a car park, offices and retail space, as well
as several apartments. But it is the nightclubs and pubs - which have
earned the notorious tag of "four floors of whores" - that make the
building come alive at night, attracting droves of expatriates.
With the property market booming, commercial and residential developments
along Orchard Road are in high demand. An en bloc bid could command
prices of up to $1,800 per square foot, property analysts told Today.
At the nearby Tanglin Shopping Centre, owners were reportedly considering
an en bloc sale that could see them pocket about $500 million. Another
ageing shopping centre in the vicinity, Ming Arcade - a 10-storey building
where units mainly served as storage spaces - was sold collectively last
year for $61 million.
While predicting a keen interest in Orchard Towers, Knight Frank research
director Nicholas Mak said a collective sale could fetch more were the
adjacent property, Palais Renaissance, included in the redevelopment.
Mr Donald Han, managing director of Cushman & Wakefield, felt that an en
bloc sale would help Orchard Towers shed its sleazy reputation. "Orchard
Towers is in a very prime location, except that it has a certain stigma
attached to it. The best way to get rid of it is to redevelop it with a
fresh concept," he said.
The area, while "not as active" as other parts of Orchard Road, has "a lot
of potential". There has been market talk that Hotel Properties Limited,
which owns Forum The Shopping Mall and Hilton Hotel just across the road,
would redevelop these properties, creating "a new cluster altogether",
said Mr Han.
Any redevelopment of Orchard Towers would likely retain its original mix
of retail, offices and residential units, said Mr Mak. "This is Orchard
Road, after all. A shopping space would make the most sense."
But the very nature of the mixed development could make consensus for a
collective sale harder to come by. For one, the distribution of proceeds
would be controversial, with shop-owners arguing over whose shop is better
located and hence, more valuable.
Orchard Towers is managed by Chesterton International and, according to
the residents, the management corporation has put up notices informing
them of the en bloc attempt.
Should the sale committee decide to proceed, under current legislation, an
80-per-cent consent majority in terms of share values would be required.
But with the Government's proposed changes to the law the majority consent
would also have to be based on ownership of units. This would give more
say to residents, vis a vis commercial owners, in a mixed development.
Mr Eric Lim, who has been living in Orchard Towers for 24 years, said
there are 58 residential units, including two penthouses - which make up
10 per cent of the share values, according to another resident.
Said Mr Lim: "I'm against the en bloc sale. I've lived here for very long.
There's a supermarket downstairs, a pharmacy and a food court. I've
everything I want here."
But one owner of an electronics shop, who has been in business for 25
years, was all for the sale given his "very poor" business. He said:
"People don't come here to buy my stuff. They come here for the women and
only at night. I might as well get the money and pack up and leave."
An employee at one of the night clubs told Today it would be "a pity" if
Orchard Towers goes.
"When you come to Orchard Towers, you know what you are here for and what
this place is about. If we move somewhere else, business would be
different," he added. - Additional reporting by Jasmine Yin
past, should it become the latest along Singapore's premiere shopping belt
to feed the en bloc frenzy.
Today understands that early last month, the owners of the building - one
of the oldest shopping centres on Orchard Road - elected a sale committee
at its annual general meeting to study the possibility of a collective
sale.
The freehold property, which is well past its 30th year and made up of two
25-storey blocks, comprises a car park, offices and retail space, as well
as several apartments. But it is the nightclubs and pubs - which have
earned the notorious tag of "four floors of whores" - that make the
building come alive at night, attracting droves of expatriates.
With the property market booming, commercial and residential developments
along Orchard Road are in high demand. An en bloc bid could command
prices of up to $1,800 per square foot, property analysts told Today.
At the nearby Tanglin Shopping Centre, owners were reportedly considering
an en bloc sale that could see them pocket about $500 million. Another
ageing shopping centre in the vicinity, Ming Arcade - a 10-storey building
where units mainly served as storage spaces - was sold collectively last
year for $61 million.
While predicting a keen interest in Orchard Towers, Knight Frank research
director Nicholas Mak said a collective sale could fetch more were the
adjacent property, Palais Renaissance, included in the redevelopment.
Mr Donald Han, managing director of Cushman & Wakefield, felt that an en
bloc sale would help Orchard Towers shed its sleazy reputation. "Orchard
Towers is in a very prime location, except that it has a certain stigma
attached to it. The best way to get rid of it is to redevelop it with a
fresh concept," he said.
The area, while "not as active" as other parts of Orchard Road, has "a lot
of potential". There has been market talk that Hotel Properties Limited,
which owns Forum The Shopping Mall and Hilton Hotel just across the road,
would redevelop these properties, creating "a new cluster altogether",
said Mr Han.
Any redevelopment of Orchard Towers would likely retain its original mix
of retail, offices and residential units, said Mr Mak. "This is Orchard
Road, after all. A shopping space would make the most sense."
But the very nature of the mixed development could make consensus for a
collective sale harder to come by. For one, the distribution of proceeds
would be controversial, with shop-owners arguing over whose shop is better
located and hence, more valuable.
Orchard Towers is managed by Chesterton International and, according to
the residents, the management corporation has put up notices informing
them of the en bloc attempt.
Should the sale committee decide to proceed, under current legislation, an
80-per-cent consent majority in terms of share values would be required.
But with the Government's proposed changes to the law the majority consent
would also have to be based on ownership of units. This would give more
say to residents, vis a vis commercial owners, in a mixed development.
Mr Eric Lim, who has been living in Orchard Towers for 24 years, said
there are 58 residential units, including two penthouses - which make up
10 per cent of the share values, according to another resident.
Said Mr Lim: "I'm against the en bloc sale. I've lived here for very long.
There's a supermarket downstairs, a pharmacy and a food court. I've
everything I want here."
But one owner of an electronics shop, who has been in business for 25
years, was all for the sale given his "very poor" business. He said:
"People don't come here to buy my stuff. They come here for the women and
only at night. I might as well get the money and pack up and leave."
An employee at one of the night clubs told Today it would be "a pity" if
Orchard Towers goes.
"When you come to Orchard Towers, you know what you are here for and what
this place is about. If we move somewhere else, business would be
different," he added. - Additional reporting by Jasmine Yin
