Singapore-listed The Place Holdings announced on Dec 4 that it has entered into a strategic collaboration framework agreement with Chinese developer MCC Land (developer for Provence Residence). The joint venture partners intend to kickstart the relationship by “exploring a collaboration on the redevelopment of Realty Centre at 15 Enggor Street” in Tanjong Pagar, according to an MCC Land spokesman in response to questions from The Edge Singapore.
In April last year, The Place Holdings’ 51%-owned subsidiary New Vision Holding, secured Realty Centre in an en bloc purchase for $148 million. The deal was brokered by Cushman & Wakefield. The Place Holdings is backed by Chinese conglomerate The Place Investment Group, which deals in tourism, media, property management, bio-medical technology and international trade. The company had announced its intention to redevelop the property and house its headquarters there in an April 22, 2019 announcement.
A 12-storey, office building, Realty Centre
, sits on a freehold site area of 11,000 sq ft. It is zoned for commercial use with a plot ratio of 5 and can be developed to 35-storeys. Under the 2019 Master Plan’s CBD Incentive Scheme, the property is eligible for a bonus plot ratio of between 25% and 30% if there is a change of use to either a hotel (25%), residential and commercial (25%) or residential with commercial on the first floor (30%).
The project is located within walking distance of the Tanjong Pagar MRT Station on the East-West Line and the future Prince Edward Station on the Circle Line.
It makes sense for MCC Land to be involved in the redevelopment of Realty Centre, as it is already a joint venture partner in the neighbouring One Bernam project. A mixed-use development with 351 residential units, a commercial lot and serviced apartment lot, One Bernam, is a joint venture between MCC Land and long-term partner, Chinese developer Hao Yuan Investments. The 99-year, leasehold site of 41,400.5 sq ft was purchased in a government land tender for $440.9 million in September last year. The new project is expected to be launched sometime in 2Q2021.
The strategic collaboration between The Place Holdings and MCC Land could see them jointly participate in the construction and development of residential and commercial projects, project management as well as the development of cultural tourism projects in the future, according to the MCC Land spokesman.