Frasers Property Acquires Cuppage Terrace for S$175M, Eyes Orchard Road Revamp
Frasers Property has bought the Cuppage Terrace conservation shophouses on Orchard Road for S$175 million. The developer plans to integrate the 17-unit enclave with the adjacent The Centrepoint to create a larger lifestyle precinct aligned with the government's rejuvenation plans for the shopping di
Singapore developer Frasers Property has acquired the Cuppage Terrace entertainment enclave on Orchard Road for an agreed property value of S$175 million, and plans to integrate the cluster of 17 conservation shophouses into a new project in the shopping belt. The developer controlled by Thai billionaire Charoen Sirivadhanabhakdi bought the property at 17-45A Cuppage Road from Royal Holdings, an investment group headed by real estate tycoon Raj Kumar.
This latest acquisition comes six months after Frasers agreed to pay S$391.9 million to buy out other property owners in The Centrepoint retail complex, which is adjacent to Cuppage Terrace near Somerset MRT station. “Together with the strengthening of ownership of The Centrepoint, this enables us to unlock synergies across adjacent sites and better position our properties to contribute to the ongoing transformation of Orchard Road, aligned with the government’s long-term vision for Singapore’s premier lifestyle destination,” said Soon Su Lin, chief executive officer of Frasers Property Singapore.
Royal Holdings had engaged CBRE to market the property, with Cuppage Terrace going on the market in January at an asking price of S$250 million. The 17 Peranakan-style terrace houses were built in 1905 on what was previously a nutmeg plantation and were collectively gazetted in 1989 as a conservation area by Singapore’s Urban Redevelopment Authority. The enclave, along with nearby Emerald Hill, has transformed into a lifestyle cluster with cafes, restaurants and bars.
Cuppage Terrace has 62 years remaining on its 99-year leasehold site, which spans approximately 28,986 sq ft (2,693 sq m). With the complex having about 34,678 sq ft of gross floor area, excluding outdoor space, Frasers paid the equivalent of S$11,301 per sq ft of gross floor area. Operations will continue as usual at Cuppage Terrace, The Centrepoint, and 51 Cuppage Road following the acquisition, the company said.
Frasers is the majority shareholder in the freehold front block at The Centrepoint, owning about 96 per cent of the retail units by strata area, and has full ownership of 51 Cuppage Road, a 10-storey office building directly connected to the mall. The developer said it will continue to assess opportunities to enhance its Orchard Road assets in coordination with the Singapore government’s plan to rejuvenate the shopping district, which includes incentives for businesses in the stretch from Tanglin to Dhoby Ghaut.
Key redevelopments already underway in the area include the revamp of the 11-storey Delfi Orchard and the Concorde Hotel and Shopping Centre. In late July, Hongkong Land agreed to buy Wheelock Place on Orchard Road from Wharf REIC for S$1.1 billion. Singapore hospitality tycoon Ong Beng Seng is also planning to transform The Forum mall, the Voco Orchard Singapore hotel and the HPL House commercial block into a mixed-use project with hotel, retail, office and residential components. The Kumar family, which sold Cuppage Terrace to Frasers, is also reported to be in talks to purchase Scotts Square, a four-level freehold retail mall on Scotts Road just off Orchard Road, with a sale agreement expected as soon as this month.
