GOLDEN Mile Complex – once described in Parliament as a national disgrace – could soon be redeveloped into a spanking new building if collective sale plans work out.

Some owners of the 705-unit strata-titled mixed development are keen on launching such a sale.

Their success could motivate the owners of other ageing strata-titled malls to follow suit, consultants said.

Malls such as Lucky Plaza, Far East Plaza and People’s Park Complex are seen as prime candidates for redevelopment as they sit on valuable land.

The difficulty, however, is getting at least 80 per cent of the hundreds of individual owners to agree to a sale.

The 16-storey Golden Mile Complex in Beach Road, for example, has 411 shops, 226 offices and 68 residential units. The building’s 99-year lease started from 1969.

“Because there are so many units and different uses, the sale process will be a very complex and lengthy one,” property consultancy Colliers International’s director for investment sales, Mr Ho Eng Joo, said.

“But if the sale goes through, it will be a record for a mixed development with the most number of owners.”

The shops in Golden Mile Complex – housing a mix of travel agencies, eateries and sundry shops selling Thai products – are estimated to be worth $360 per sq ft (psf) to $530 psf if the units are sold individually.

The offices on the fourth to the ninth floors are worth $250 psf to $270 psf, while the residential units on the 10th to the 16th floors are worth between $230 psf and $250 psf.

Developer City Developments owns some strata-titled units in the complex (City Developments is not the developer of Golden Mile Complex) , which were part of an aborted $788 million sale to Suntec Real Estate Investment Trust last year.

This is not the first time the owners of Golden Mile Complex are considering selling en bloc.

Almost three years ago, some owners tried for a collective sale but found that property prices then were not attractive, said a source.

This time round, however, property prices may have risen enough to convince owners such as Mr N.P. Tan, who occupies a third-floor unit selling office supplies.

His decision on whether or not to sell will depend solely on the price he is offered, he said yesterday.

About 200 Golden Mile Complex owners met a property agent last night for preliminary discussions and appointed a sales committee to take charge of matters.

The agent is said to have estimated that a collective sale could reap the owners a 120 per cent premium over current market values.

However, for such a large mixed development, apportionment – or dividing the spoils – is usually a major headache, consultants said.

“It is comparatively easy to get a consensus on apportionment for residential and office uses, but it may not be so straightforward for other uses such as strata-titled carparks and particularly, shops,” said property consultancy Knight Frank executive director Foo Suan Peng.

A retail unit’s value is affected more by location – whether it is facing the street or in a quiet corner – than residential units, for example.

Still, the potential windfall from a collective sale has proved to be a draw not just for Golden Mile Complex owners.

Owners of other malls such as Ming Arcade in Cuscaden Road and Upper Serangoon Shopping Centre are already working towards collective sales.

Mr Foo said that a successive sale of Golden Mile Complex will prove that too many cooks do not always spoil the broth.

“If it is sold, it will show other mall owners that were there is a will, there is a way,” he said.

NEW HOPES FOR OLD BUILDING

“Because there are so many units and different uses, the sale process will be a very complex and lengthy one.

But if the sale goes through, it will be a record for a mixed development with the most number of owners.”

MR HO, on issues in launching a sale for Golden Mile Complex. The 16-storey building in Beach Road has 411 shops, 226 offices and 68 residential units