Chinese tycoon Du Shuanghua’s Glory Property buys Far East Shopping Centre en bloc for about $908 mil

Du Shuanghua, a Chinese steel tycoon, has purchased Far East Shopping Centre en bloc via his investment vehicle Glory Property Development, an entity under Bright Ruby Resources, his Singapore-registered mining and resources company. It’s previous sale price was $908 million, which comes to $3,350 psf per plot ratio (psf ppr), with a potential gross floor area of 290,574 sq ft, under the Strategic Development Incentive (SDI) scheme offered by URA. This deal was successfully brokered by Michael Tay, head of Singapore capital markets, CBRE, who was the marketing agent of the Far East Shopping Centre.

It was not the first prime real estate purchase in Singapore for Du. Last year, Ever Glory, another of Bright Ruby Resource’s investment vehicles, acquired the 37-storey, 999-year, Grade-A office building Income@Raffles for just over $1 billion. Additionally, Bright Ruby had paid $1.15 billion a decade ago for the former Grand Park Orchard and its retail podium, Knightsbridge.

Subsequent to this, the company purchased the Marriot Champs-Elysees in Paris for US$464 million in 2014 and the Hilton Hotel in Sydney for US$364 million the following year. Moreover, the 438-room Westin Hotel Tokyo was also bought by Bright Ruby in 2019 for US$870 million.

The sale of Far East Shopping Centre has been welcomed by Tay: “We are glad to find the right buyer for Far East Shopping Centre. This is someone who has invested in overseas properties in major cities around the world, such as Paris, Sydney and Tokyo, and will be able to bring such expertise to Singapore in the rejuvenation of Orchard Road.”

Highlighting on Bright Ruby’s other purchases, Tay added, “As an investor, Bright Ruby has been forward-looking and tends to focus on prime assets in major cities.” An example of this is the asset enhancement and repositioning of 270 Orchard Road, the former Grand Park Orchard, to the 308-room Pullman Singapore Orchard, managed by Accor Group, as well as the reopening of the lifestyle retailer Abercrombie & Fitch at the former Knightsbridge as Singapore’s largest Adidas store.

Far East Shopping Centre, located at 545 Orchard Road with a 75m frontage along Orchard Road and a 55m frontage along Angullia Park in prime District 9, is zoned for commercial use and has a 999-year lease from 1871. Occupying a land area of 36,014 sq ft, it could be repositioned into a commercial offering with a mix of uses by the new owner through Glory Property Development.

Orchard Road, of which Far East Shopping Centre is located, is identified by URA as one of the six buildings to be redeveloped into “a new exciting destination”. This includes Hotel Properties Ltd’s (HPL) Voco Orchard Singapore, Forum the Shopping Mall and HPL House, Wharf Estates Singapore’s Wheelock Place, and Bonvests Holdings’ Liat Towers.

URA rolled out the Strategic Development Incentive (SDI) Scheme in April 2021 to incentivise owners to redevelop their property which, if done, could provide up to 20% bonus gross floor area (GFA).

Apart from that, the go-ahead was also given to HPL to redevelop its three properties along Orchard Road at the end of August. The new mixed-use development, which will comprise a hotel, retail, office and residential components, a rooftop garden and a performance theatre, will also be connected directly to the Orchard MRT Station.

The Far East Shopping Centre’s price of about $3,350 psf ppr has surpassed the previous record set by Ming Arcade, which was sold last December for $172 million or $3,125 psf ppr. Savills Singapore brokered the deal which was bought by the Royal Group of Companies, a family office controlled by Singapore billionaire Asok Kumar Hiranandani. It will be a luxury hotel.

Tanglin Shopping Centre, located nearby, was purchased en bloc in February 2022 for $868 million ($2,769 psf ppr) by Pacific Eagle Real Estate, the Singapore-based real estate investment and development firm of Indonesian billionaire Sukanto Tanato, the owner of Royal Eagle Group.

The rejuvenation of Orchard Road is well underway with many properties undergoing transformation.

Residents of Zion Road Condo are spoilt for choice when it comes to convenience as it is located near the shopping havens of Great World City and Orchard Road. The Maxwell and Telok Ayer MRT stations are just a short stroll away, giving occupants easy access to the Downtown Line and East-West Line.

Du, through Glory Property Development, is likely to reposition Far East Shopping Centre into a commercial offering with a mix of uses, such as retail, hospitality, office and residences. Bright Ruby’s extensive experience in major cities, such as Paris, Sydney and Tokyo, is expected to help in the rejuvenation of the Orchard Road.

The previous record set by the sale of Ming Arcade was surpassed by Far East Shopping Centre’s price of about $3,350 psf ppr. URA rolled out the Strategic Development Incentive (SDI) Scheme to incentivise owners to redevelop their properties and enjoy the flexibility of land use, height and increase in GFA.

With the go-ahead given to HPL to redevelop its three properties along Orchard Road at the end of August, the rejuvenation of the area is well underway. Pacific Eagle Real Estate, the Singapore-based real estate investment and development firm of Indonesian billionaire Sukanto Tanato, purchased Tanglin Shopping Centre in February 2022 for $868 million ($2,769 psf ppr). The new mixed-use commercial development is connected directly to the Orchard MRT Station, significantly increasing its footfall.

Michael Tay, head of Singapore capital markets, CBRE, the marketing agent for Far East Shopping Centre, brokered the circulation of Bright Ruby’s successful sale of Far East Shopping Centre at $908 million, working out to $3,350 psf per plot ratio (psf ppr). This demonstrates the forward-looking approach of Bright Ruby as an investor, focusing on prime assets in major cities around the world.