Katong Shopping Centre up for collective sale again at S$630 million

SINGAPORE - Katong Shopping Centre, Singapore’s first air-conditioned shopping mall, has been put up for collective sale again at an unchanged reserve price of S$630 million, marketing agent Cushman & Wakefield said on Monday (Feb 27).

Although the current Master Plan zoning for Katong Shopping Centre is “Commercial & Residential” with a plot ratio of 3, approval has been secured for the development of a brand new mall and serviced residences at a plot ratio of 3.223 with no development charges payable, Cushman & Wakefield said.

The shopping centre, a landmark in the eastern part of Singapore since it opened in 1973, is sited on freehold land with an area of 86,924 sq ft. The reserve price translates to about S$2,248 per square foot of gross floor area.

Katong Shopping Centre is in close proximity to regional business hubs in Paya Lebar and Changi Business Park, as well as hotels such as The Holiday Inn Express, Hotel Indigo, Village Hotel and Grand Mercure Roxy. It is also within walking distance to the Tanjong Katong and Marine Parade MRT stations on the upcoming Thomson-East Coast line, the marketing agent said.

According to Ms Christina Sim, Director of Capital Markets in Cushman & Wakefield, suburban retail developments, due to their staple offerings, have become prime commercial assets that have generally withstood the waxing and waning of economic forces and tourist arrivals. “The sector has emerged relatively unscathed from the rising vacancy levels experienced in the central area. This part of the East Coast enjoys a captive residential catchment, as it is home to many affluent and well-heeled residents. The development is ideal for opportunities such as the serviced residential market. With the completion of the Thomson-East Coast Line in 2023, this catchment is expected to grow even further with the influx of large-scale events and the upcoming completion of Project Jewel, Changi Airport’s new retail and lifestyle complex,” she said.

The tender exercise closes on March 13.