Cuppage Terrace, next to The Centrepoint, up for sale with S$250 million valuation
A developer can potentially acquire and redevelop both properties, which are next to each other
[SINGAPORE] Raj Kumar’s Royal Holdings has put on the market its Cuppage Terrace property, a strip of 17 conservation shophouses.
The move comes on the heels of a collective sale offer at neighbouring Orchard Road mall The Centrepoint. Valued at S$250 million, Cuppage Terrace houses food and beverage outlets sitting on a land area of 28,986 square feet (sq ft), directly facing the rear block of The Centrepoint which was put up for sale about two weeks ago at S$418 million.
Clemence Lee, executive director of capital markets (Singapore) at CBRE, who is marketing the property, said: “For the first time in over 20 years, Cuppage Terrace – Orchard Road’s beloved and iconic F&B and lifestyle enclave – is finally on the market.”
Cuppage Terrace, comprising 17 adjoining Peranakan conservation shophouses, has about 50,891 sq ft of total floor area, including outdoor refreshment areas which span more than 12,000 sq ft. The property has about 62 years’ balance on its 99-year lease.
The launch of the expression of interest exercise for Cuppage Terrace would be one of Singapore’s largest conservation shophouse offerings, noted Lee.
While Frasers Property, developer of The Centrepoint, is seen to be a top contender for the Centrepoint site for possible redevelopment, the launch of Cuppage Terrace’s expression of interest exercise may offer a palatable alternative to investors looking to snag a prime parcel in Orchard Road.
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Ownership of both assets – The Centrepoint and Cuppage Terrace, could put a developer in prime position to tap the Strategic Development Incentive Scheme (SDI) with a redevelopment proposal, The Business Times reported recently. One possibility could be to incorporate the conservation shophouses into a new development comprising a hotel with some retail.
Frasers Property is also well-positioned to tap the SDI. It owns 51 Cuppage Road, a 10-storey office building which is connected to The Centrepoint via a link bridge.
The group’s chief executive officer for Singapore Soon Su Lin said at an earnings briefing last year that Frasers Property continues to look at new concepts, to upgrade the mall’s tenant mix. “But at the same time we are aware of the Urban Redevelopment Authority’s (plans) for the area with the SDI. We continue to look at how we can combine our sites to create an even better development in future.”
The ground floor of Cuppage Terrace is fully leased to a diverse mix of established F&B operators with artisanal bars and international cuisines, said CBRE’s Lee.
“Large, contiguous shophouse portfolios are exceptionally rare and almost never remain long on the market. Over the last five years, astute investors have been acquiring such assets for their private, long-term portfolios.
“For instance, major shophouse offerings like The Rail Mall (43 shophouses), 46-50 Mosque Street (12 shophouses), 42-45 Mosque Street (10 shophouses), 17-33 Jalan Sultan (17 shophouses), and 161 Lavender Street (11 shophouses) were all transacted swiftly after their market introduction, underscoring this strong demand.”
CBRE expects robust interest from a diverse spectrum of potential buyers including family offices, funds, and high-net-worth investors.
The expression of interest exercise for Cuppage Terrace will close on Feb 12.
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