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

Du Shuanghua, the Chinese steel tycoon, has purchased Far East Shopping Centre en bloc via his investment vehicle, Glory Property Development, which is registered under Bright Ruby Resources. The purchase price for the property was noted to be around $908 million; this translates to about $3,350 psf ppr (per plot ratio), according to the potential gross floor area of 290,574 sq ft.

Michael Tay, head of Singapore Capital Markets for CBRE, the marketing agent for Far East Shopping Centre, brokered the sale for the tycoon. This is not the first prime real estate purchase in Singapore for Du. In June of last year, Ever Glory (another investment vehicle of Bright Ruby Resources) acquired the 37-storey building Income@Raffles for just over $1 billion.

As far as Bright Ruby Resources is concerned, ten years ago it paid $1.15 billion for the former Grand Park Orchard, along with its retail podium, Knightsbridge. The Marriot Champs-Elysees in Paris was purchased in 2014 for US$464 million, followed by the purchase of the Hilton Hotel in Sydney the following year for US$364 million. At the end of 2019, the company also paid US$870 million for the Westin Hotel Tokyo.

Regarding the transaction for Far East Shopping Centre, Michael Tay commented, “We are glad to find the right buyer for Far East Shopping Centre”. Bright Ruby Resources had the foresight to invest in prime assets in major cities worldwide, such as Paris, Sydney and Tokyo; it is thought that this expertise can be brought to Singapore and breathe new life into Orchard Road.

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Tay’s words confirmed by the former Grand Park Orchard, situated at 270 Orchard Road. This property underwent substantial asset enhancement and reopened in 2020 as the 308-room Pullman Singapore Orchard, managed by Accor Group. Other noteworthy tenants here include Apple Store, Rolex, The Hour Glass and Ritual Gym.

Far East Shopping Centre sits on the corner of Orchard Road and Angullia Park in district 9. The property has a total land area of 36,014 sq ft and a 999-year lease from 1871; its use is zoned for commercial purpose. Glory Property, Du’s investment vehicle, is likely to reposition the asset into a commercial offering incorporating retail, hospitality, office and residential uses.

URA introduced Strategic Development Incentive (SDI) scheme in April 2021 to incentivise owners to redevelop; Far East Shopping Centre was identified as one of the six buildings along the Orchard Road stretch between Cuscaden Road and Orchard Boulevard to be developed into a new destination.

The new development will enjoy 20% bonus gross floor area, flexible land use, increased building height and a direct underground pedestrian link from Orchard MRT Station to increase visitor numbers. The sale of Far East Shopping Centre is also notable as its price of $3,350 psf ppr has surpassed the record set by Ming Arcade, which was sold last December for $172 million ($3,125 psf ppr) and was bought by Royal Group of Companies. The development here will be a luxury hotel.

Pacific Eagle Real Estate acquired Tanglin Shopping Centre, which is nearby, for $868 million ($2,769 psf ppr) in February 2022. It is owned by the Indonesian billionaire Sukanto Tanato, who is involved in pulp, paper, palm oil and energy. It will also be developed into a mixed-use commercial development.

The rejuvenation of Orchard Road is well underway; with the recent purchases and redevelopment plans, this part of Singapore is set to take centre stage in the near future.