High Street Centre En Bloc Sale Falls Through Due to Payment Failure
The en bloc sale of High Street Centre, a prime mixed-use development at 1 North Bridge Road, has fallen through after the purchaser failed to make the balance payment of the initial deposit by the deadline of October 2.
This marks a significant setback for the owners, who had hoped to seal a $678 million deal, which was already below the reserve price of $748 million.
Timeline Breakdown and Missed Payment
The collective sale committee (CSC) of High Street Centre was informed by marketing agent Cushman & Wakefield (C&W) that the sale could not proceed as the lawyers representing the majority owners had not received the remaining portion of the 1% initial deposit from the buyer, Transformation Development Pte Ltd.
The purchase price of $678 million, though lower than the original reserve price, would have been the largest collective sale of 2024.
C&W explained that while the buyer had attempted to request an extension from the Strata Titles Board (STB), their efforts were in vain, as the collective sale timeline expired on October 2.
Transformation Development was believed to be acting on behalf of an offshore entity, with a fund comprising high-net-worth investors from the US, Europe, and India.
Challenges Leading to the Lapse
The en bloc sale process had encountered delays, with the buyer’s initial 1% deposit of $6.78 million due in July but delayed due to regulatory issues surrounding fund movements.
While the buyer made token payments of $1.2 million, the remaining balance of $5.58 million and the required $33.9 million in buyer’s stamp duty were not paid by the October 2 deadline, leading to the lapse of the sale.
The purchaser had expressed challenges related to heightened regulatory vigilance, which delayed the transfer of funds from the US by four to five weeks.
Despite efforts to meet the new deadlines, the funds did not arrive in time, resulting in the lapse of the en bloc sale.
Impact on the Collective Sale Market
High Street Centre’s lapse follows other high-profile collective sales that failed to materialize in 2024, including Far East Shopping Centre’s failed sale to Bright Ruby Resources after the buyer could not secure additional gross floor area under the URA’s strategic development incentive scheme.
With a site area of 60,299 square feet and an allowable gross plot ratio of 7.72, High Street Centre was a coveted asset with redevelopment potential.
More than 80% of the unit owners had signed the sale and purchase agreement at $678 million, but the failure to complete the deal leaves uncertainty in Singapore’s collective sale market.
As the collective sale landscape continues to face challenges, the lapse of High Street Centre’s en bloc deal emphasizes the need for greater clarity in the regulatory environment and the importance of adhering to tight deadlines.
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