21% stake in Orchard Towers up for sale

20130117-st-21-percent-orchard-towers-stake-for-sale-pic A 21 PER CENT strata interest in Orchard Towers comprising prime freehold retail and office space is up for grabs by tender, with an asking price of about $190 million.

Selling the stake is a subsidiary of Sinarmas Land Ltd (previously known as Asia Food & Properties) called Golden Bay Realty, which is looking to part with the stake as a whole, or split it into three components: the retail space, offices in the front tower, and offices in the rear tower.

If purchased in whole, the stake would represent the single largest interest in Orchard Towers, which is made up of two towers and also has residential spaces.

The stake offered here comprises 21 retail units and 37 office units with a strata area of 7,449 square feet and 70,536 sq ft, respectively, which are located at the front tower along Orchard Road.

A single strata title of 50,084 sq ft of office space is located at the rear tower, along Claymore Road.

For parties interested in just the retail space, Sinarmas is hoping to sell it at about $3,000 per square foot (psf). For the office space, it hopes for a price just under $2,000 psf.

Ashish Manchharam, regional director at Jones Lang Lasalle, which is brokering the sale, said: "The strong interest from retail investors in the commercial office and retail strata market presents an opportunity to acquire on a bulk basis with a view to sell down individually in the future.

"Alternatively, the 21 per cent interest could be held on a long-term basis for income with future potential for a collective sale."

Orchard Towers was completed in 1973. The property has an existing strata area of 595,066 sq ft over 25 floors and 361 carpark lots.

The tender exercise will close on Feb 27 at 3pm.

Source: Business Times, 17 Jan 2013