July 13, 2022

People’s Park Centre up for collective sale: Shop owners hope to retire, home owners say units are rundown

By brit

SINGAPORE – When Mrs Lee Qing Qing heard about plans for the collective sale of People’s Park Centre, she saw it as a good opportunity to retire.

The 68-year-old owner of two shops has been selling clothes and shoes at the mixed-use development in Chinatown since 1974.

“Of course, I feel sad and sentimental, but all good things must come to an end. It has been a good 48 years, but it is time for me to rest and enjoy my life,” Mrs Lee told The Straits Times at her shoe shop, Darling Shoes, last week.

“It is also time that the centre gets a new lease of life and attracts even more people, especially since fewer people have been visiting since the (Covid-19) pandemic.”

People’s Park Centre is up for collective sale by public tender with a reserve price of $1.8 billion, its marketing agency, ERA Realty Network, announced on July 6.

An attempt to sell the centre en bloc for $1.35 billion in 2019 failed as only about 30 per cent of owners consented to the move, said owners who spoke to ST.

To push through the collective sale of developments 10 years or older, consent of at least 80 per cent by share value and strata area from owners is needed.

ERA said the collective sale this time garnered 84 per cent of the owners’ signatures by strata area and 80 per cent by share value.

Mrs Lee said she thought the previous reserve price was too low as she bought her shoe shop, which comprises two units totalling 804 sq ft, for $1.7 million.

She declined to reveal how much she stands to receive if the development is sold, but added: “If I get to retire, I’ll pick up art and flower arrangement, and spend my time on things I like do to.”

Built in 1970, the commercial-cum-residential development sits on a 95,467 sq ft site, with a gross floor area of about 821,017 sq ft. It comprises a 13-storey block and a 30-storey block, and has 324 shops, 256 offices, 120 apartments and a carpark.

According to ERA, owners of shops ranging from 4 sq m to 596 sq m could receive sale proceeds of between $213,000 and $22.7 million, while those with offices of 21 sq m to 510 sq m could receive between $536,000 and $12.5 million.

Owners of apartments of 154 sq m to 224 sq m could receive between $2.39 million and $3.42 million, and with penthouses of 243 sq m to 392 sq m drawing between $3.42 million and $5.33 million.