US$670 million Singapore shopping centre deal backed by Chinese tycoon Du Shuanghua flops after regulator rejects plan
- The proposal to buy Far East Shopping Centre fell through after a firm linked to Du failed to get approval from the Urban Redevelopment Authority
- The transaction was set to be Singapore’s largest for a commercial property in 2023
The deal involved the purchase of Far East Shopping Centre in Singapore’s Orchard Road shopping belt by a firm connected to Chinese tycoon Du Shuanghua, the people said, asking not to be identified because the matter is private. It collapsed after the parties failed to get approval from the Urban Redevelopment Authority, the people added.
The transaction was set to be the city state’s largest for a commercial property in 2023, according to data compiled by Cushman & Wakefield. It was a rare big-ticket deal in a market that’s been hit by reduced demand from institutional buyers due to high interest rates.
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EdgeProp.sg, a property portal in Singapore, and the Business Times earlier reported the breakdown of the deal. CBRE Group Inc., which brokered it, didn’t respond to a request for comment. Bright Ruby Resources Pte, a commodities firm in Singapore controlled by Du, couldn’t immediately be reached for comment.
A prerequisite for the transaction had been the approval of additional gross floor area under Singapore’s so-called Strategic Development Incentive to rejuvenate areas in the city centre, including Orchard Road.
The URA confirmed that it rejected the redevelopment proposal, saying the sole site didn’t fulfil the eligibility criteria.
The SDI scheme requires a proposal to include a minimum of two adjacent sites, such that the “amalgamated redevelopment can have a strong transformational impact that will enhance and rejuvenate the area,” the authority said in an emailed statement.
