SINGAPORE: The government's S$450 million
compensation package for the acquisition of Pearls Centre is fair,
say analysts Channel NewsAsia spoke to.
However, some tenants who did not receive an ex
gratia or goodwill payment are appealing to the
authorities.
Compensation for properties at the multi-storey
Pearls Centre varies.
According to Pearls Centre management, for commercial units facing
the road, the compensation is S$9,000 per square foot.
Shops that are near the escalator get S$3,000 per square
foot.
Other areas get at least S$1,200 per square foot.
As for residential properties, the figure is S$1,100 per square
foot.
Analysts say the compensation is reasonable.
Christine Li, head of research and consultancy at OrangeTee, said:
"As the government has not been topping up commercial leases for
quite some time, developers are not really prepared to pay today's
market value, even if this site was put up for collective sale. So,
we think that the (compensation) price is largely in line with fair
value."
However, some tenants like Mr Ravishankar did not receive the ex
gratia payment, which can be as high S$30,000.
He has been running an Internet cafe on the ground floor of the
centre for about
six years.
He said he contacted the Singapore Land Authority.
Mr Ravishankar said: "There is no reason given. So I just simply
called them, then asked them what is the reason. They said they
cannot tell me, it's a case-by-case problem. They asked me to
appeal through the email."
Pearls Centre management says that out of its 250 tenants, about 30
per cent were affected.
Kok Chee Choon, committee member of Pearls Centre management, said:
"We've received more than 10 calls from those who did not receive
the ex gratia payment. After we've gathered their feedback, we'll
be appealing to the authorities next week to try and get some
compensation for these tenants."
For the ex gratia payment, the Singapore Land Authority says it
considers tenants' age, the duration of their operations, the scale
and nature of their business, and whether they are Singapore
citizens.
- CNA/ir