Frasers Property Buys Cuppage Terrace
Frasers Property has acquired the 17-shophouse Cuppage Terrace enclave on Singapore's Orchard Road for S$175 million.
Frasers Property has purchased the Cuppage Terrace entertainment enclave on Orchard Road for S$175 million. The Singapore developer acquired the property from Royal Holdings, an investment group led by real estate tycoon Raj Kumar.
This deal follows Frasers' S$391.9 million agreement six months earlier to buy out other owners in the adjacent The Centrepoint retail complex. The company stated the acquisition allows it to enhance connections between the adjoining sites and support the government's vision for Orchard Road.
"Together with the strengthening of ownership of The Centrepoint, this enables us to unlock synergies across adjacent sites and better position our properties to contribute to the ongoing transformation of Orchard Road," said Soon Su Lin, CEO of Frasers Property Singapore.
Asset Details and Pricing
Royal Holdings had engaged CBRE to market Cuppage Terrace, listing it in January with an asking price of S$250 million. Frasers stated operations will continue as usual at Cuppage Terrace, The Centrepoint, and the connected 51 Cuppage Road office building.
The 17 Peranakan-style terrace houses were built in 1905 and gazetted for conservation in 1989. The site has 62 years remaining on its 99-year leasehold and spans approximately 28,986 square feet.
| Metric | Figure |
|---|---|
| Agreed Property Value | S$175 million ($137.6 million) |
| Site Area | 28,986 sq ft (2,693 sq m) |
| Gross Floor Area (excl. outdoor) | 34,678 sq ft |
| Price per sq ft GFA | S$11,301 |
| Original Asking Price (Jan) | S$250 million |
| Remaining Lease | 62 years (of 99-year leasehold) |
Orchard Road Redevelopment Context
Frasers is the majority shareholder in the freehold front block of The Centrepoint, owning about 96 percent of the retail units by strata area. The developer said it will continue to assess opportunities to enhance its Orchard Road assets in coordination with government plans to rejuvenate the shopping district.
The government is providing incentives for businesses in the precinct to ensure it remains compelling. Key to the revitalisation is the redevelopment of ageing malls and hotels, including the 11-storey Delfi Orchard and the Concorde Hotel and Shopping Centre.
Other major moves are reshaping the street. In late July, Hongkong Land agreed to buy Wheelock Place for S$1.1 billion. Hospitality tycoon Ong Beng Seng is reportedly planning to transform The Forum mall, the Voco Orchard Singapore hotel, and HPL House into a mixed-use project. His Hotel Properties Ltd is in talks with potential joint venture partners, according to market sources.
Potential Future Moves
The sellers, the Kumar family, may remain active on Orchard Road. Raj Kumar and his son Kishin are reported to be in talks to purchase Scotts Square, a four-level freehold retail mall on Scotts Road. A sale agreement with owner Wharf Estates Singapore is expected as soon as this month.
