What may be lost with restriction on strata subdivision for commercial properties

LANDMARK buildings completed in the 1970s and 1980s in Singapore such as Lucky Plaza on Orchard Road and International Plaza in Tanjong Pagar have multiple individual strata owners of their commercial spaces.

While rental yield may be low for some owners of strata shop lots or office spaces, the focus may be on long-term capital gain. For some strata owners of commercial space, who use the space to house their own business operations, having security of tenure through ownership can be valuable.

Some individuals who own strata commercial lots have probably had plenty to cheer about. In February, it was announced that the freehold strata-owned Tanglin Shopping Centre was sold for S$868 million to Pacific Eagle Real Estate, a Singapore-based privately held entity of the Tanoto family, in its fourth attempt at a collective sale. The sale price for the office, retail and car parking complex was about 10 per cent above the reserve price.