Katong Shopping Center is Now Collecting Signatures from Property Owners to Perform Another En Bloc Sales.

After two failed attempts to carry out en bloc sales by Katong Shopping Center, the east coast landmark has initiated the process for a third attempt

The management of Katong Shopping Center is pleased to announce that they have begun collecting approval signatures from property owners to kick off yet another en bloc sale process. Katong Shopping Center was Singapore's first air-conditioned shopping mall when it opened in 1973. The mall contains 425 units and sits on a nearly 87,000 sq ft freehold plot. Situated along Mountbatten Road, it houses, among others, offices, employment agencies, printing and tailoring services shops, and eateries.

The Katong Shopping Center intends to sell all of its properties at once. The en bloc sales were authorized by 80 percent of the 410 owners. Plans for the shopping center's first effort at en-bloc sales were utterly realized in August 2011. The $445 million agreement, however, fell through. Back then, the average allotted value to each owner was $2,000-$2,800 per square foot.

As of June 2014, there was a second attempt to have an en bloc sale, but the deal fell through once again. However, using the previous data as a yardstick, the approval signatures expected for this third en bloc sales attempt will be secured from a good percentage of the 410 owners at the Katong Shopping Center.

To better understand the situation, the author went to Singapore's Katong Shopping Center and interviewed several tenants and store owners on why they opted to join the collective sales agreement. Mr. Shi Jing Lee, one of the owners, indicated that he had various reservations and dissatisfactions with the management council and management office. He was upset that the management office wanted to charge him $10,000 to hire a professional architect to draw a simple box on the floor using a cloth tape.

Mr. Shi Jing Lee's application for permission to design his house was delayed for two years because he feared the expense of employing an architect would be too expensive. He relentlessly pressed management to accept his request throughout the two years, but the administration avoided providing an update on the application's status. It wasn't until two years later that his permit was instantly updated when the new management office took over.

Another renter questioned by the author expressed dissatisfaction with the management office's renting out outdoor spaces. Mr. Tsao Nimat, the tenant, commented that he had rented an outside area outside his business for numerous years but was astonished to realize that his rented space had been given out to another tenant despite paying monthly rental rates.

Both tenants will sign the sales agreement since it is difficult for them to continue doing business in a hostile climate. Other renters interviewed had similar opinions. What remains to be seen is if a buyer can be found for this old landmark in Singapore's east.

Contact Info:
Name: Peter Jefferson
Email: Send Email
Organization: Katong Shopping Center
Website: http://katongshoppingcentre.com/

Release ID: 89065090