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 bought Far East Shopping Centre for $908 million via his investment vehicle Glory Property Development. This deal sees the prime real estate in Singapore being purchased by Bright Ruby Resources, the Singapore-registered mining and resources company belonging to Du. The price equates to a floor area ratio of $3,350 per sq ft, based on the estimated 290,574 sq ft gross floor area of the property.Michael Tay, head of Singapore capital markets at CBRE, which was the agent for the collective sale, brokered the transaction. This is the fourth investment of this kind in Singapore by Bright Ruby, having previously purchased Marriot Champs-Elysees in Paris, the Hilton Hotel in Sydney, Westin Hotel in Tokyo, and the Grand Park Orchard.Located at 545 Orchard Road, the 36,014 sq ft property has a 75m frontage along Orchard Road and a 55m frontage along Angullia Park. It is zoned for commercial use and benefits from the Strategic Development Incentive scheme from URA, giving Du the flexibility to reposition the building into a space that features retail, hospitality, office and residential components.The purchase of Far East Shopping Centre follows other significant collective sales such as the Ming Arcade, bought last December by Royal Group of Companies, and Tanglin Shopping Centre, purchased by Pacific Eagle Real Estate in February for $868 million.This marks a pivotal moment in Orchard Road’s rejuvenation and is indicative of the way in which prime properties in major cities across the world are being sought out by investors in search of sound asset opportunities.Du Shuanghua’s acquisition of Far East Shopping Centre is the latest in a trend of global investors keen on prime properties in cities such as Paris, Sydney, Tokyo, and now Singapore. While the former Grand Park Orchard was transformed into the Pullman Singapore Orchard in 2021, the Knightsbridge retail podium is now occupied by the largest Adidas store in Singapore.The Strategic Development Incentive (SDI) Scheme rolled out by URA in April 2021 brought the potential of increased gross floor area and varied land use/building heights to owners willing to redevelop their properties. The intention is to create a new destination on Orchard Road from Cuscaden Road to Orchard Boulevard – a plan that Bright Ruby Resources have bought into, and one that the Royal Group of Companies and Pacific Eagle Real Estate have seen the benefit of.The purchase of Far East Shopping Centre set a new record price of $3,350 psf ppr, surpassing the previous high set by Ming Arcade and signalling positive intentions on behalf of global investors in the future of Singapore’s prime real estate.Du Shuanghua, a Chinese steel tycoon, has acquired the Far East Shopping Centre in Singapore via his investment vehicle Glory Property Development. Bright Ruby Resources – a Singapore-registered mining and resources company – brokered the purchase through Michael Tay, of CBRE. The price of around $908 million equates to a floor area of $3,350 per sq ft of the potential 290,574 sq ft space.

This is the fourth investment of this kind in Singapore for Bright Ruby, having previously purchased the Marriot Champs-Elysees in Paris, the Hilton Hotel in Sydney, Westin Hotel in Tokyo, and the Grand Park Orchard.

The Tengah Plantation Close EC project will feature 1,074 units of three- to five-bedroom units, in a range of layouts. These will be complemented by a range of facilities, such as swimming and wading pools, a gym, tennis court, and BBQ pavilion. In addition, the development is expected to be completed with a commercial zone, providing residents with a range of retail and dining options. Residents of Tengah Plantation Close EC will enjoy the convenience of living close to numerous MRT stations and expressways, as well as proximity to renowned schools. With the many exciting amenities and features in the development, it is expected to be an attractive option for potential buyers and investors.

Located at 545 Orchard Road, the 36,014 sq ft site has a 75m frontage along Orchard Road and a 55m frontage along Angullia Park. It is zoned for commercial use and benefits from the Strategic Development Incentive (SDI) scheme from URA, thus allowing Du to reposition the building into a space with a mix of retail, hospitality, office and residential components.

The purchase of Far East Shopping Centre is part of a wider trend of global investors keen on prime properties in cities such as Paris, Sydney, Tokyo, and now Singapore. The sale saw a record price of $3,350 psf ppr, surpassing the previous high set by Ming Arcade, clawing back investor confidence in prime real estate and indicating positive intentions for Singapore’s future.

Pacific Eagle Real Estate and the Royal Group of Companies have also invested in similar schemes here, all of which are part of efforts to create a new destination on Orchard Road from Cuscaden Road to Orchard Boulevard – a plan that includes a hotel, retail, office and residential components, a rooftop garden and a performance theatre.

URA’s SDI Scheme brings the potential for increased gross floor area and varied land use/building heights to owners willing to redevelop their properties. Bright Ruby have bought into this scheme, with the former Grand Park Orchard now opened as the Pullman Singapore Orchard, and the Knightsbridge mall now home to the largest Adidas store in Singapore.

This purchase marks a pivotal moment in the rejuvenation of Orchard Road, and is a sign that global investors have faith in the future of Singapore’s prime real estate.