SINGAPORE – Frasers Property has acquired Cuppage Terrace, a cluster of 17 conservation shophouses in the Orchard Road area, for an agreed property value of $175 million.
The asset is a “distinctive lifestyle enclave” with Peranakan-style shophouses and a “vibrant mix of food-and-beverage, entertainment and nightlife offerings”, Frasers said in a statement on Aug 31.
Cuppage Terrace has a total gross floor area of 34,678 sq ft, excluding the outdoor refreshment area, and 62 years left on its 99-year lease. It is located next to The Centrepoint, Frasers’ flagship asset in Orchard Road.
The purchase follows Frasers’ successful collective-sale tender for the leasehold rear plot of The Centrepoint for $391.9 million in February.
Frasers is the majority shareholder in the freehold front plot at The Centrepoint, and owns 96 per cent of the retail units by strata area.
It also fully owns 51 Cuppage Road, a 10-storey office building directly connected to The Centrepoint.
With the addition of Cuppage Terrace to its portfolio, Frasers wants to take a more coordinated approach to asset enhancement and long-term value creation.
Soon Su Lin, chief executive of Frasers Property Singapore, said that the move “enables us to unlock synergies across adjacent sites and better position our properties to contribute to the ongoing transformation of Orchard Road”.
The company will continue to explore long-term opportunities to enhance its Orchard Road assets, in line with efforts to rejuvenate the shopping district.
Frasers shares ended on Aug 31 at S$1.02, up by S$0.01 or 1 per cent. THE BUSINESS TIMES
