The manager of Far East Hospitality Trust (FEHT) has announced that it has received an outline advice from the Urban Redevelopment Authority (URA) in relation to the redevelopment of Central Square, which comprises a serviced residence and commercial spaces, including office and retail units.
The outline advice was issued under an incentive scheme in response to a joint outline application.
According to the manager, the proposed plan is intended to rejuvenate the precinct with an integrated development, and involves a potential rezoning and uplift in gross floor area which are subject to specific approvals from URA and other relevant authorities.
It also includes plans for improvements of common areas to encourage a wide variety of activities such as outdoor dining, exhibitions and events.
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The manager says that it will explore various options for the site to “deliver optimal value for stapled securityholders”, including a possible divestment to a suitable third-party to undertake any proposed redevelopment.
In the meantime, the commercial and hospitality spaces at Central Square will continue to be in operation.
The manager highlights that at this stage, there is no certainty that the transaction will occur and that no decision or binding agreement has been entered into in respect of any redevelopment or divestment, which would be subject to various approvals.
Shares in FEHT closed flat at 62 cents on March 23.