Wednesday, November 15, 2006
[RealEdge] BT : Frasers to turn Bedok theatres into mall
| Published November 15, 2006  | |||
| Frasers to turn Bedok theatres into mall
By KALPANA RASHIWALA
FRASERS Centrepoint Ltd (FCL) has bought the adjacent Bedok and Changi theatre sites for $40.8 million and plans to develop the leasehold sites into a mall which, when completed, it will pump into its shopping centre trust, Frasers Centrepoint Trust.
The $40.8 million price reflects a unit land price of about $441 per square foot of potential gross floor area inclusive of an estimated $2.9 million development charge for tapping a higher plot ratio, and a land premium payable for buying two adjoining strips of state land that Frasers Centrepoint can buy. Market watchers reckon the break-even cost for a new mall project on the site could be about $1,100 psf. Sellers Shaw Brothers (owner of Changi theatre) and Cathay group (which owns the adjacent Bedok theatre) obtained outline planning permission in early August to redevelop the two theatre sites as well as the adjoining state lands into a mixed-use commercial complex with a 3.0 plot ratio, with a total gross floor area of about 133,598 sq ft. The two theatres, on sites with a remaining lease of about 70 years, have a combined land area of 33,084 sq ft. The two strips of state land can contribute a further 11,448 sq ft in land area. Knight Frank handled the sale of the Changi and Bedok theatres, through a tender which closed on Oct 30. The tender is said to have attracted three bids, of which Frasers Centrepoint' The mall that Frasers Centrepoint Ltd (FCL) will develop on the site will be its first in the eastern part of Singapore. FCL's CEO Lim Ee Seng said in a statement yesterday: 'Upon redevelopment, the Bedok sites will increase FCL's portfolio of quality retail malls under management to eight, extending our reach to the eastern region of Singapore . . . When completed, the retail mall is expected to be injected into Frasers Centrepoint Trust.' FCL has granted the trust a five-year right of first refusal on completed mall properties in Singapore owned, acquired or developed by FCL. Christopher Tang, CEO of Frasers Centrepoint Asset Management Ltd, the manager of the trust, said the latest deal demonstrates the 'merits of the developer-sponsored Reit model'. Frasers Centrepoint Trust - which was listed on the Singapore Exchange in July and which currently owns three shopping centres on the island - now has ready access to an enlarged acquisition pipeline of malls which includes the future Bedok mall, as well as Northpoint 2 and the existing Centrepoint Shopping Centre units, Mr Tang added. | |||
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