CITY Developments Limited (CDL) unveiled plans for its large-scale mixed-use development Union Square on Friday (Oct 11), with the Havelock Road project having gained 67 per cent more gross floor area (GFA) under a government incentive scheme.
Approval for the increase in GFA to about 735,500 square feet (sq ft) was obtained in March, CDL said. The redevelopment of the former Central Mall and Central Square properties will be “one of the largest for the precinct” under the Strategic Development Incentive (SDI) scheme of the Urban Redevelopment Authority (URA), CDL said.
Located in District 1 and near the Singapore River area, Union Square – spanning 148,800 sq ft – will include a 20-storey Grade A office tower called Union Square Central, and a three-storey block with retail and food and beverage (F&B) space, as well as a co-living component with a hotel licence.
The project’s residential component, called Union Square Residences, is a 40-storey block with 366 apartments, ranging from 463 sq ft, one-bedder units to 1,518 sq ft, four-bedroom premium units. There are also two Sky Suites and a penthouse, and commercial space on the first and second levels.
A preview for Union Square Residences is slated for Nov 1, with sales details and pricing to be announced later, said CDL. The entire mixed development is expected to be completed in 2029.
Sherman Kwek, group chief executive officer of CDL, said: “Due to the URA’s incentive schemes that encourage the rejuvenation of older precincts, we can leverage our property development and asset-management expertise to transform existing assets into large-scale mixed-use landmarks, revitalising the neighbourhood and creating significant value”.
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The SDI scheme aims to encourage owners of commercial buildings in strategic areas such as Orchard Road, the Central Business District and Marina Centre, to team up with their neighbours and undertake a comprehensive redevelopment that would transform the street or precinct.
The Union Square redevelopment project combines three plots of land: a freehold site which housed an office block at Central Mall, and two 99-year leasehold parcels with a cluster of conservation buildings and what used to be Central Square.
CDL owns the freehold parcel and the conserved buildings on 99-year leasehold land.
It acquired the Central Square plot from the Far East group in 2021 for S$315 million under its plans to redevelop its Central Mall properties.
CDL had bought Central Square from Far East Hospitality Trust for S$313.2 million, and the reversionary leasehold interest from OPH Riverside – a subsidiary of Far East Orchard – for S$1.8 million.
The transaction included a potential incentive payment of up to S$18 million above the purchase price consideration, subject to conditions being met, including getting planning approval for residential use.
The new office tower, Union Square Central, will be built on the freehold plot, while Union Square Residences and the other commercial components will have 99-year leasehold titles.
The existing heritage and conservation buildings on the site will be redeveloped to house retail and F&B services, with an amphitheatre at the junction of Cumming Street and Fisher Street to serve as the heart of the development’s outdoor spaces.
Union Square is CDL’s third major enhancement initiative in the Central Area.
The group’s ongoing redevelopments in the Central Area include Canninghill Piers and Canninghill Square, a joint venture project with CapitaLand being built on what used to be Liang Court, and Newport Plaza (formerly Fuji Xerox Towers).