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The proposed en-bloc sale of the iconic mall failed to get 80% consent from shop owners.
A bid to place Queensway Shopping Centre on the market has been unsuccessful following a lukewarm reception from owners, reported Today.
Savills Singapore, designated marketing agent of the iconic property, confirmed that the proposed en-bloc sale fell through.
The adjoining residential block Queensway Tower was also thrown in as part of the proposal. Together, the properties comprised 78 residential apartments and 241 retail units, with the mall being popular for its sporting equipment and apparel stores.
Suzie Mok, senior director of investment projects for Savills Singapore, said the collective sales committee failed to acquire the 80% consent from owners required under Singapore law to conduct an en-bloc sale.
The committee had 12 months starting from the first signature acquired in April to get the votes required to launch the public tender for sale.
“We have more than 20% by share value who were unsupportive, primarily shop owners. Hence, the minimum mandate of 80% consent from strata value and share value is unlikely to be attained,” she said.
“The collective sale committee felt that it was not viable to carry on, even though there were owners who were supportive and willing to sign the agreement.”
She noted that the 43-year-old freehold development could have been priced at more than S$500 million.
Alison Lee, co-owner of Yak Mee Trading, a clothing store passed on to her by her father-in-law, felt relief upon finding out that the en-bloc bid was not successful.
“We were very happy (when we found out). All my customers also felt very happy. I informed my father-in-law about the good news as he did not want an en bloc to happen as well. If we can run our store here forever, then we would,” she said.
Lim Jin Fu, manager for Salam and Sons, a sporting store inside the mall, was also happy that the bid did not push through.
“We informed our regular customers about it because we had a lot of regulars coming in and asking us when were shifting out. There was a lot of concern when the news about the en bloc broke, a lot of people came down and asked us about this,” he said.
There were, however, other store owners who had different views.
June Leong, Shoe Classic store owner, who believes that business has been on the decline in recent years.
“Business has been dropping by almost 40% since last year. During Deepavali this year, for the first time in 30 years, I did not manage to sell even one pair of shoes.”
Reinforcing this view is that of Marilyn Tan, 98 Designs Embroidery Services owner, who said that foot traffic has declined over the years.
“A lot of the owners have aged and want to sell the unit so that they have some money for their retirement. The building is really not doing very well and so if they can tear it down, it might be good,” she noted.
She believes, though, that the mall is a landmark.
“When you think of sports apparel, you think of this place. Being an old mall, the rent is affordable for people, like me, who are doing production. I don’t need an expensive storefront so this place gave me opportunities to continue my business,” she added.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg