Frasers Property Nearing Deal to Acquire Cuppage Terrace for Up to S$180 Million
Frasers Property is said to be close to inking a deal to buy Cuppage Terrace, a row of 17 conservation shophouses off Orchard Road next to The Centrepoint. The price is understood to be between S$175 million and S$180 million. The acquisition would enlarge Frasers Property’s presence in the Orchard Road precinct, ahead of plans to potentially redevelop the stretch that would include the front and rear blocks of The Centrepoint and 51 Cuppage Road, a 10-storey office building linked to The Centrepoint’s rear block.
Expected Price
Conservation Shophouses
Site Area
Price per sq ft (GFA)
The Asset and the Deal
Cuppage Terrace sits on a 28,986 square foot site with 61 years and nine months left on its lease. It has about 50,891 sq ft of total lettable area, including an outdoor refreshment area exceeding 12,000 sq ft in size. Based on the asset’s gross floor area (excluding the outdoor area) of nearly 35,000 sq ft, the price is expected to work out to about S$5,000 per square foot.
The property is currently owned by Raj Kumar’s Royal Holdings Organisation and features food and beverage outlets on the ground floor with hotel rooms above. It has an 85-metre road frontage along Cuppage Road. CBRE conducted an expression-of-interest exercise that closed on February 12 to find a buyer for Cuppage Terrace.
Frasers Property’s Growing Orchard Road Foothold
The potential acquisition of Cuppage Terrace would complement Frasers Property’s recent moves in the area. The company was awarded the collective sale tender for the rear block of The Centrepoint, comprising retail space and apartments on an L-shaped plot with about 52 years left on its 99-year lease. That collective sale, bought out through a S$391.9 million deal, is pending approval by the Strata Titles Board.
Before the collective sale, Frasers Property already owned part of the rear block, holding all 66 strata retail units and eight out of the 66 apartments, adding up to about 52 per cent of the strata area and about 85 per cent of the share value in the rear block. In the freehold front block, where The Centrepoint’s remaining 151 retail strata units are located, Frasers Property owns about 96 per cent each of the strata area and the share value.
Last week, the Singapore-listed property group controlled by the family of Thai billionaire Charoen Sirivadhanabhakdi unveiled plans to restructure the portfolio of assets under Frasers Hospitality Trust, which was privatised last year.
Frequently Asked Questions
What is Cuppage Terrace?
Cuppage Terrace is a row of 17 conservation shophouses off Orchard Road, next to The Centrepoint. It sits on a 28,986 sq ft site with 61 years and nine months remaining on its lease and has about 50,891 sq ft of total lettable area.
How much is Frasers Property paying?
The price is understood to be between S$175 million and S$180 million. Based on the gross floor area of nearly 35,000 sq ft (excluding the outdoor refreshment area), this works out to about S$5,000 per square foot.
Who currently owns Cuppage Terrace?
Cuppage Terrace is owned by Raj Kumar’s Royal Holdings Organisation. It currently houses food and beverage outlets on the ground floor with hotel rooms above, and has an 85-metre road frontage along Cuppage Road.
Why is Frasers Property buying it?
The acquisition would enlarge Frasers Property’s presence in the Orchard Road area, ahead of plans to potentially redevelop the stretch that includes the front and rear blocks of The Centrepoint and 51 Cuppage Road, a 10-storey office building.
What else has Frasers Property acquired nearby?
Frasers Property recently won the collective sale tender for the rear block of The Centrepoint for S$391.9 million. It already owns about 96% of the freehold front block and about 52% of the rear block’s strata area.
Need Guidance on Singapore’s Property Market?
Whether buying, selling, or investing, our team at AsianPrime Properties is here to help you navigate every market cycle with confidence.