The deal involved the acquisition of the Far East Shopping Center in Singapore’s Orchard Road shopping strip by an organization linked to Chinese tycoon Du Shuanghua, in accordance with the people, who asked to not be identified since the matter is private. It collapsed after the parties did not obtain approval from the Urban Redevelopment Authority, the people added.
The transaction was expected to be the most important business real estate transaction within the state in 2023, in accordance with Cushman & Wakefield data. It was a rare high-value transaction in a market that has suffered from reduced demand from institutional buyers as a consequence of high rates of interest.
An Indonesian tycoon is struggling to sell his $12 million luxury home in Singapore
An Indonesian tycoon is struggling to sell his $12 million luxury home in Singapore
Singaporean real estate portal EdgeProp.sg and the Business Times previously reported that the deal had fallen apart. CBRE Group Inc., which acted as an intermediary within the matter, didn’t reply to a request for comment. Bright Ruby Resources Pte, a Singapore-based commodity company controlled by Du, couldn’t immediately be reached for comment.
The condition of the transaction was the approval of additional gross area under the so-called Singapore’s Strategic Development Incentive program goals to revitalize areas in the town center, including Orchard Road.
URA confirmed that it had rejected the redevelopment proposal, saying the one facility didn’t meet the eligibility criteria.
The SDI program requires the proposal to incorporate at the very least two adjoining properties in order that “the combined redevelopment can have a powerful transformative impact that may enhance and rejuvenate the world,” the authority said in an emailed statement.
