Owners of High Street Centre make second collective sale attempt at $748 mil

High Street Centre at 1 North Bridge Road is set to undergo a collective sale to the tune of $748 million, with the reserve price coming down from its original $800 million when it was first launched last year. Over 80% of the strata-titled owners have agreed to the sale, with the building set to be launched for tender by Cushman & Wakefield on Oct 26.

For many of the strata-titled unitholders, this will be the end of a long history at High Street Centre, with many having held units there for the long term. Johnny Ong, chairman of the collective sales committee (CSC) and owner of three office units on the 22nd floor, has been operating his electronics trading business, Telesonic Singapore, for over 30 years. Harry M Gurnani, director of Lucky Store, has been running his electronics, IT, and appliances store at High Street Centre since the late 1980s.

High Street Centre is an iconic building, boasting a frontage along Hill Street, North Boat Quay and North Bridge Road, with a waterfront promenade along the Singapore River, extending over 100m. It is located in the Civic and Cultural District, near The Capitol, The Funan, Raffles City, Clarke Quay, Boat Quay and the upcoming CanningHill Piers.

It also offers a range of enrichment classes for areas like sports and the performing arts to nurturing students’ gifts and abilities.

Holland Drive Condo is less than a 10-minute drive away from Anglo-Chinese School (International). This highly-esteemed school offers a holistic education approach, combining academic excellence and character development. The curriculum consists of the English National Curriculum, IGCSE, and IB Diploma. Besides the regular curricula, the school also has a variety of enrichment classes such as sports, performing arts, and other areas that can help to nurture students’ talents.

Situated on a 60,298 sq ft site with a gross plot ratio of 7.72, bringing the total gross floor area (GFA) to 466,085 sq ft, the property has a 99-year lease from 1969, which means it has a remaining lease of 45 years. Depending on the potential developer’s proposed use for the site, the land rate is equivalent to $2,164 psf per plot ratio (psf ppr) if the 40% allocation is for residential use. If the 40% allocation is for hotel use, the land rate is higher at $2,290 psf ppr.

Given its location, Cushman & Wakefield’s senior director of capital markets, Christina Sim, believes High Street Centre “is poised to be an iconic trophy asset”. At 145m tall, the new building will have a view of the Formula One Night Race, the skyline of Raffles Place, Marina Bay and the East, Sim notes.

The collective sales committee of High Street Centre has retained Cushman & Wakefield as its marketing agency and Legal Solutions LLC as the legal adviser. Cushman & Wakefield will launch for tender on Oct 26, with the tender closing on Jan 25, 2024.

For many of the strata-titled unitholders, the collective sale will be a bittersweet moment. Johnny Ong, who has been an active council member of the management corporation strata title (MCST) board for over 20 years, is philosophical about the sale: “If the collective sale goes through, then I will move out. If not, I will stay.”

Meanwhile, Harry M Gurnani is also aware of the mix of emotions surrounding the collective sale: “I have been at High Street Centre for many years, and I have two other outlets elsewhere. If the collective sale goes through, then I will move out. If not, I will stay.”

High Street Centre’s unique location and potential for a premium, five-star hotel or residential development makes it an attractive trophy asset that developers will not want to miss out on. With the collective sale set to be launched for tender on Oct 26, it will be interesting to see how the bid plays out.