Chinese Tycoon Du Shuanghua Withdraws From Singapore Property Deal

April 11, 2024

2 minutes read

right, on Orchard Road in Singapore, on Saturday, May 8, 2021.

Chinese steel tycoon Du Shuanghua has pulled out of the proposed acquisition of Far East Shopping Centre in Singapore’s Orchard Road shopping strip after failing to get regulatory approval to build a larger commercial property on the site of one of the oldest malls in the Lion City.

Du, through his Glory Property Development, had in September offered to buy the strata-titled shopping mall for S$910 million ($673 million) in what was billed as Singapore’s biggest property deal for 2023. The collective sale, which was brokered by CBRE, fell through after the Urban Redevelopment Authority rejected the proposed increase in the property’s gross floor area by as much as 20% upon redevelopment, the Business Times reported.

The sale committee has notified unit owners at Far East Shopping Centre this week that the proposed sale will no longer proceed, according to the report, citing a memo sent by the committee to strata-title holders.

Built in 1974, the 15-story Far East Shopping Centre sits on a 999-year leasehold site of about 36,000 square feet. With an existing built-up space of about 242,000 square feet, the property is home to some 600 retail shops in the first five floors, as well as offices in the upper 10 floors.

Asian tycoons have been putting forward plans to redevelop aging buildings in the vicinity of Orchard Road, which the government aims to rejuvenate. Right next to Far East Shopping Centre, tycoon Ong Beng Seng’s Hotel Properties plans to redevelop the voco Orchard hotel, along with two adjoining properties into a massive mixed use hotel, office, retail and residential complex that analysts estimate will cost as much as S$2 billion to construct.

Nearby, Royal Group—controlled by Singapore billionaire Asok Kumar Hiranandani—is redeveloping the Ming Arcade, an aging shopping mall on Cuscaden Road near Orchard Road, into a boutique hotel. Next door, Indonesian tycoon Sukanto Tanoto also plans to redevelop the Tanglin Shopping Center, which his Pacific Eagle Real Estate bought for S$868 million in 2022.

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Based in Singapore, I am a senior reporter for Forbes Asia, covering billionaires, entrepreneurs, wealth and deals across Asia. Prior to joining Forbes, I worked for several media organizations in the past two decades, including Bloomberg and Thomson Reuters. In recent years, I have also ventured into PR with stints as Associate Director at Singtel and as Chief Storyteller at boutique media consultancy FDM Media. For news tips, you can reach me at jburgos@forbesasia.com.