Golden Mile Tower’s bid at S$600 million collective sale closes with no bids 

THE collective sale tender of Golden Mile Tower closed on May 8 with no bids again, The Business Times (BT) has learnt. 

However, the development’s owners have entered into private treaty negotiations with “several” interested parties, said a spokesperson from ERA, which is marketing the property. BT understands that none of the offers have matched the reserve price of S$600 million.

On Apr 7, Golden Mile Tower was relaunched for collective sale, after a first en bloc attempt at an indicative price of S$650 million closed on Jan 9 without a deal.

It is understood that the 99-year leasehold commercial development at 6001 Beach Road has been valued at S$598 million.

The collective market has gone quiet in the last year. A Knight Frank report in April indicated that only a third of collective sales have succeeded in the current 2021/2023 sales cycle, down from the 63 per cent success rate in the 2017/2018 boom cycle. 

Golden Mile Tower has a plot size of 8,727 square metres (sq m) and a gross floor area of 38,953.72 sq m. With a plot ratio of 4.46, the asking price of S$600 million for the site translates to about S$1,431 per square foot per plot ratio. 

If the reserve price is matched, owners of the retail units will get an indicative amount of between S$370,000 and S$14.7 million each approximately, depending on the size of their units.

Those with office units will receive between S$540,000 and S$12.4 million approximately. 

Golden Mile Tower comprises 405 strata lots, comprising 251 retail units, 152 office units, a cinema and a car park.

There are about 46 years left on the lease for the 22-storey building, which is zoned for commercial use in the 2019 Master Plan.

Located in District 7, Golden Mile Tower was completed in 1974, a year after its sister building, Golden Mile Complex.

The latter, which became the first modern, large-scale strata-titled development to be gazetted for conservation in 2021, was successfully sold en bloc in May 2022 to a consortium comprising Far East Organization, Perennial Holdings and Sino Land for S$700 million.

Nicholas Mak, chief research officer of property portal Mogul.sg, noted that the S$600 million reserve price is “substantial”, and that some developers interested in the property may want to go into a joint venture to diversify their risks. 

He said: “On top of the S$600 million, developers will have to pay the Singapore Land Authority to top up the lease to a fresh 99-year term. Furthermore, commercial en bloc sale projects would face competition from the two white sites at Marina Gardens Crescent and Jurong Lake District, expected to be released in June 2023.”

Huttons Asia senior director of research Lee Sze Teck noted that the en bloc market above S$500 million has not been picking up this year, with developers more cautious due to economic uncertainties and high interest rates.

He said: “With the former Shaw Towers being redeveloped, there will also be new office supply added in the Beach Road area.”