Orchard Towers Collective Sales fail to get 80% concent from Owners

According to mainboard-listed real estate developer Hiap Hoe, a plan for Orchard Towers collective sale has failed to get the required 80% support from unit owners.

Hiap Hoe stated in a bourse statement on Monday that it had been told that the planned purchase had fallen through. Hiap Hoe’s subsidiary Golden Bay Properties controls 59 strata lots at Orchard Towers, which are made up of 21 stores and 38 offices.

“The communal sale procedure will not advance,” Hiap Hoe said in a statement. “The collective selling committee of Orchard Towers did not reach the requisite threshold for the collective sale.

The Orchard Towers collective sale committee advised establishing a reserve price of $1.6 billion for a collective sale, according to an article in the Business Times from February 2022. The possible transaction was then considered to have the potential to become Singapore’s most costly collective sale.

Orchard Towers, which was finished in the early 1970s, has a plot ratio of 4.9 and a site size of around 6,130 sq m.

The freehold construction consists of two buildings, with some commercial space and 58 private residential apartments in the back 25-story tower along Claymore Road, and office and retail space in the front block along Orchard Road. There are 361 parking garages.

The police’s announcement that the nightclub and bar licenses at Orchard Towers would not be extended through May 2023 gave rise to a collective sale of the notoriously seedy and wild property in July 2022.

This was reportedly done as part of ongoing attempts by the Singaporean government to maintain law and order within the structure.

Market observers claim that the collapse of the Orchard Towers collective sale highlights the difficulties in putting together a transaction in a large mixed complex where it is challenging to acquire a value and price acceptable to the many strata title owners.