A 20-storey office and retail property in the heart of Singapore's financial district is up for collective sale via tender.

Situated on a 2,035.4 square metre site with a 999-year land tenure (effective from 20 April 1826), the reserve price of SGD780 million translates to an estimated land rate of SGD2,833 per square foot per plot ratio. 

Under the Draft Master Plan 2019, The Arcade site is zoned Commercial with a Gross Plot Ratio of 15 and comprises 127 office and retail units.

Depending on the size of their property, each owner could stand to receive between SGD700,000 and SGD29.9 million from the successful sale of the development.

Subject to relevant approvals, the site could potentially be redeveloped into an integrated development, comprising a hotel, residential units, office and retail space.

Colliers International Managing Director Tang Wei Leng said the collective sale was a "golden opportunity" to lay claim to a historic site in the heart of Singapore’s bustling commercial district.

"The Arcade is a landmark site that has borne witness to the remarkable transformation of Singapore and its economy over the past 50 years," she said.

"Developers will now get the rare chance to redevelop the site – creating a new focal point of interest – and reshape the Singapore city skyline.”

Source: Colliers International

The site's location in the city centre with proximity to wide-ranging amenities means it lends itself to the development of a mixed-use project.

There is also the potential for a modern skyscraper with panoramic views of the Marina Bay, and the skyline of the new Downtown.

The site enjoys prominent dual frontage onto Raffles Green - a popular gathering place of executives and professionals in Raffles Place - as well as Collyer Quay, a main arterial road that connects to other parts of Singapore.

It is also well-served by public transport with convenient access to the Marina Central Expressway, Pan Island Expressway and other major expressways. 

According to a recent report by PWC and the Urban Land Institute, Singapore now offers the best real estate investment prospects in the Asia Pacific region.

The Emerging Trends in Real Estate Asia Pacific 2020 report noted that sentiment for Singaporean assets has rebounded, with the office sector having largely absorbed the oversupply,

Ms. Tang said with vacancies at an all-time low and limited supply in the pipeline, confidence in medium-term prospects had returned.

"Global capital continues to seek quality assets in safe gateway cities," she said.

"We expect investor interest in Singapore commercial real estate to remain robust, owing to the country’s position as a global financial hub, its stable political environment, and pro-business policies.

"Within Raffles Place, there are probably no other redevelopment opportunities and we believe The Arcade site will be highly sought-after.”

The Arcade Collective Sale Committee Chairman Moeez Hatim Nakhoda said an upgrade would revitalise the site. 

“The Arcade has a fantastic location in the heart of the CBD and is highly visible and attracts heavy pedestrian traffic," he said. 

"As Raffles Place continues to evolve and surrounding buildings undergo revamp, the owners feel that it is time that The Arcade gets a complete makeover as well.”

The collective sale tender for The Arcade will close at 3pm on 8 January 2020.

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