City Developments Limited (CDL) has announced plans for the redevelopment of its Central Mall properties and the surrounding area into a large-scale mixed-use development following the proposed acquisition of Central Square for a purchase consideration of S$315 million.

Through its wholly-owned subsidiary, CDL has entered into a put and call option agreement to acquire the asset from Far East Hospitality Real Estate Investment Trust for S$313.2 million, and the reversionary leasehold interest from OPH Riverside Pte Ltd for S$1.8 million. The transaction includes an incentive payment of up to S$18 million, subject to certain conditions being met by 31 December 2023, including getting planning approval for residential use.

CDL currently owns the 81,660 square foot (sq ft) Central Mall site. It comprises the freehold seven-storey Central Mall (Office Tower) and a cluster of conservation shophouses on a 99-year leasehold site.

Upon the completion of the proposed Central Square transaction in Q1 2022, CDL plans to redevelop all the sites under the Urban Redevelopment Authority (URA) Strategic Development Incentive (SDI) Scheme. The Outline Permission obtained for the redevelopment of the existing sites into a mixed-use development allows for commercial, hospitality and serviced apartment components, potentially yielding a Gross Floor Area (GFA) uplift of 67% to approximately 735,500 sq ft, from the current GFA of 441,650 sq ft. CDL will be working closely with the authorities to further enhance the viability of the redevelopment scheme and potentially add in a residential component.

CDL Group Chief Executive Officer Mr Sherman Kwek said, “The strategic acquisition of Central Square crystallises our master plan to shape the precinct’s transformation into a new and vibrant lifestyle hub. This rare placemaking opportunity augments our role in rejuvenating the Singapore River precinct and aligns with our enhancement strategy to unlock the latent value of our matured assets. With the enlarged site, we can take a multi-faceted approach to the planning and design of the entire area and shape the public realm to maximise value for all stakeholders in the precinct. The Central Mall and Central Square redevelopment project marks our third rejuvenation initiative in the Central Area to transform the cityscape.”

CDL is currently redeveloping the former Liang Court site jointly with CapitaLand Development into an integrated project. It comprises the 696-unit CanningHill Piers which was just launched for sale in November. CDL has also commenced the redevelopment of its former Fuji Xerox Towers under the CBD Incentive Scheme, and the residential component of the new mixed-use integrated project is slated for launch in H2 2022.