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

Sitting proudly at the heart of the transformation is the Jurong Lake Condo development. The condo features several luxurious high-rise towers, providing an abundance of modern living spaces. It also offers an array of lifestyle amenities such as a clubhouse, pool and fitness centre, as well as lush landscaped gardens and a serene lakefront promenade. Residents also have prime access to the Jurong Lake Gardens and all its recreational facilities. In short, Jurong Lake Condo presents a perfect balance of urban living and nature.

Du Shuanghua’s Singapore-registered mining and resources company, Bright Ruby Resources, has purchased Far East Shopping Centre en bloc via its investment vehicle Glory Property Development for around $908 million – an amount aproximating $3,350 psf per plot ratio (psf ppr) which takes into account the potential gross floor area of 290,574 sq ft. Michael Tay, head of Singapore capital markets at CBRE, the marketing agent for Far East Shopping Centre, brokered the sale.

This is not the first time Bright Ruby Resources has acquired prime real estate in Singapore. In June of last year, another investment vehicle of Bright Ruby Resources, Ever Glory, obtained the Income@Raffles office building of 999-year lease from NTUC Income Insurance Co-operative for a sum of just over $1 billion. The company acquired the former Grand Park Orchard and its retail podium, Knightsbridge for $1.15 billion. On a global level, Bright Ruby has acquired the Marriot Champs-Elysees in Paris for US$464 million, followed by the Hilton Hotel in Sydney for US$364 million. In 2019, the company completed the purchase of Westin Hotel Tokyo for US$870 million.

Michael Tay was glad to have found the right buyer for Far East Shopping Centre. He noted that Du Shuanghua had experience with investments in major cities like Paris, Sydney and Tokyo, and would be able to offer his expertise to the Singaporean rejuvenation of Orchard Road. Previously, Bright Ruby had completed the asset enhancement of the former Grand Park Orchard, 270 Orchard Road, which was reopened in 202 as the 308-room Pullman Singapore Orchard. The prime retail space formerly occupied by lifestyle retailer Abercrombie & Fitch in Knightsbridge was also reopened last year as Singapore’s largest Adidas store.

As part of the Strategic Development Incentive (SDI) scheme offered by URA, Far East Shopping Centre, located at 545 Orchard Road, has a 75 m frontage along Orchard Road and a 55 m frontage along Angullia Park, with a land area of 36,014 sq ft and 999-year lease from 1871. The property is zoned for commercial use and with the purchase, Bright Ruby will likely reposition it into a development with a mix of uses such as retail, hospitality, office and residences.

Far East Shopping Centre’s sale price has surpassed the previous record set by Ming Arcade, sold for $172 million or $3,125 psf ppr last December. The buyer of Ming Arcade, the Royal Group of Companies, controlled by Singapore billionaire Asok Kumar Hiranandani, is looking to develop a luxury hotel. Pacific Eagle Real Estate, the Singapore-based real estate investment and development firm of Indonesian billionaire Sukanto Tanato bought Tanglin Shopping Centre, nearby, in February 2022 for $868 million ($2,769 psf ppr) and will be developing a mixed-use commercial development.

URA rolled out the Strategic Development Incentive (SDI) Scheme in April 2021 to incentivise owners to redevelop their property. Owners who redevelop their properties jointly with at least one of their neighbours and create “a new destination” will enjoy a 20% bonus gross floor area (GFA), as well as increased flexibility in land use and building height. Furthermore, there will be a direct underground pedestrian link from Orchard MRT Station, significantly increasing the footfall to this part of Orchard Road.

The rejuvenation of Orchard Road is well underway and Bright Ruby’s purchase of Far East Shopping Centre is indicative of this progress.