Ossia International's Wu Zhenhua family acquires 18 retail units at Orchard Shopping Centre for 73 million yuan | Lianhe Zaobao

The Wu Zhenhua family behind Singapore's mainboard-listed company Ossia International has purchased 18 permanently leased retail units at Orchard Shopping Centre for SGD 7.3 million. The transaction involves a total built-up area of 8,934 square feet, with a transaction price equivalent to SGD 8,171 per square foot. This price per square foot is approximately 19% lower than the SGD 9 million when it was launched on the market in 2022. According to The Business Times, although there were buyers interested in acquiring the property four years ago, the transaction could not be completed due to an unfavorable interest rate environment, rising financing costs, and overall suppressed investment willingness. This property is owned and managed by LaSalle Investment Management, a subsidiary of Jones Lang LaSalle (JLL), and includes two units on the first floor leased to Maybank, as well as 16 units on the second floor, with tenants including RHB Bank and Xiao Long Kan Hotpot. It is understood that the Wu family will treat this batch of units as part of a long-term asset appreciation strategy, planning to renovate the shop facades and street-facing entrances to enhance overall attractiveness. However, as Orchard Shopping Centre is currently in the negotiation process for a collective sale, the buyer is expected to adopt a cautious wait-and-see attitude, reassessing the upgrade project once the collective sale results become clearer. This transaction is reportedly facilitated by Colliers. Orchard Shopping Centre May Be Up for Collective Sale for the First Time Orchard Shopping Centre was built by one of the largest local real estate developers, Far East Organization, in the 1970s and is one of the earlier layered lease retail malls in the Orchard area. Extended Reading Three brothers bid SGD 0.16 per share to privatize Ossia International, stock price surged over 40% this morning Far East Organization is currently considering its first collective sale and has established a collective sale committee, appointing AlpsEdge Real Estate and Brilliance Capital as joint sales agents. AlpsEdge Executive Director Chen Hongwen stated that as the process is still in its early stages, the committee has not yet decided on the asking price for the sale Far East Organization holds over 53% of the strata area of Orchard Shopping Centre, as well as nearly 50% equity. The commercial projects developed by Far East Organization along Orchard Road also include Far East Shopping Centre, Far East Plaza, Lucky Plaza, and Orchard Plaza. Recently, the Orchard Road area has seen active sales, and asset holders and investors generally hope for an update and transformation in this commercially dense area. Industry insiders point out that Orchard Road has always been regarded as the most important retail corridor in the region, with assets mostly held by long-term institutions or families, making supply scarce. The recent increase in available properties is not due to a sudden surge in demand, but rather the historically limited supply along Orchard Road, which has attracted investor attention. Recent transactions include Frasers Property acquiring the remaining equity of The Centrepoint for SGD 391.9 million last month; Concorde Hotel and shopping centre being sold to major shareholder Hotel Properties Limited for SGD 821 million in November 2024; and City Developments Limited (CDL) acquiring Delfi Orchard for SGD 439 million in May of the same year