12-4-2024 (SINGAPORE) A blockbuster $670 million (S$909 million) deal backed by Chinese commodities billionaire Du Shuanghua to acquire the Far East Shopping Centre in Singapore’s prestigious Orchard Road shopping belt has fallen through, after plans for the mall’s redevelopment failed to secure approval from urban authorities, according to individuals familiar with the matter.
The sources, who requested anonymity due to the private nature of the transaction, revealed that the proposed purchase of the iconic mall by a firm connected to the Chinese tycoon hit an impasse when the Urban Redevelopment Authority (URA) rejected the plans, effectively scuppering the deal.
Had it materialized, the acquisition would have been the city-state’s largest commercial property transaction in 2023, underscoring the significant interest in Singapore’s prime retail real estate despite the challenging market conditions brought about by elevated interest rates.
According to reports from local property portal EdgeProp.sg and the Business Times, the breakdown of the high-profile deal was attributed to the failure to secure approval from the URA for additional gross floor area under Singapore’s Strategic Development Incentive (SDI) scheme, which aims to rejuvenate key areas in the city centre, including the famed Orchard Road shopping belt.
When approached for comment, the URA confirmed that it had indeed rejected the redevelopment proposal, citing its failure to meet the eligibility criteria stipulated under the SDI scheme. Specifically, the authority clarified that proposals must encompass a minimum of two adjacent sites, ensuring that the “amalgamated redevelopment can have a strong transformational impact that will enhance and rejuvenate the area.”
The rejection has dealt a blow to the ambitious plans of Du’s Singapore-based commodities firm, Bright Ruby Resources Pte, which was poised to acquire the iconic Far East Shopping Centre and breathe new life into the aging mall through a comprehensive redevelopment. Attempts to reach the company for comment were unsuccessful.
