Raffles Town Club to be redeveloped after 2026 lease expires
In 2000 about 5,000 people sued the club shareholders over breach of contract. They claimed club owners told them RTC was going to be a private club with 19,000 people. They sought a reimbursement of their S$28,000 fees for membership and won the lawsuit in 2005.
RTC’s membership price decline was among the most important issues that came up during the legal proceedings.
According to court documents BT has viewed, the membership cost dropped from S$28,000.00 in May of 2000 to S$16,000.00 the following month. The price fell from S$28,800 in May 2000 to S$16,000.
Memberships are still being sold on the secondary marketplace, although it’s unclear when they stopped.
Raffles Town Club’s prime land plot in Bukit Tiamah that it has occupied since October 2016 will be sold to develop residential properties after its lease expires.
The move may lead to a further drop in the price of club membership.
Carousell’s latest listings for RTC memberships show that they were available as recently as three month ago and cost between S$7,000 and S$8,000.
Chinese investor Lin Jian Wei brought a S$130mn claim in 2008 against four of the founders. Margaret Tung was a Singaporean businesswoman who had assumed control of RTC, back in July, 2001.
Redevelopment will increase the number of homes available in the future and enhance the residential nature of the neighbourhood. They also added that future residents will benefit from improved transport infrastructures and connectivity in the city and on the island.
Raffles Town Club released a statement to The Business Times saying that the club will continue its service to its member until October 20, 2026.
RTC may continue operating until its current lease expires. Then, the club must return the leased land to the State. SLA announced that it would work closely on returning the land to the club.
SLA & URA both said the government will work with RTC in order to find suitable state property if RTC wants to continue operation after the lease ends.
If the site had been put up for auction today, the winning bid on land would likely be above S$1,500 (psf), per plot ratio. The finished units, assuming the project is on a 99 year lease, are likely to sell at a price above S$3,000/psf.
In a recent launch near, the Watten House project with freehold ownership, condo units were sold on average at S$3,230 for each square foot at a November 18 private preview. The UOL Group in conjunction with Singapore Land Group has sold 57 %, or 120 out of 180, of the District Ten condominium located near Tan Kah Kee MRT.
In a Monday (Nov.20) joint statement, the Singapore Land Authority(SLA), Urban Redevelopment Authority explained that the decision to redevelop RTC fits in with Singapore’s aim to redevelop Brownfield Sites as much as is possible to meet demand for future land, such as housing.
RTC memberships started at S$28,00 when the club was opened in 2000. They are currently being offered on the second market for S$7,000 up to S$8,000.
The lease for RTC’s site located at Plymouth Avenue will expire in October 2026. The parcel, located on Bukit Timah Road would be among the rare 99 year leasehold residential properties available. It is also likely to be very sought-after due to its proximity an MRT and popular schools.
Singapore Chinese Girls’s school, Anglo-Chinese Primary School, Nanyang Primary as well St Joseph’s Institution can be found nearby.
Europa Holdings, a Singapore-based company, won the bidding for this site in 1996. It was zoned to be used for sports and leisure.
Over the last 20-years, there have been a number of long-drawn out legal proceedings against the club’s founding shareholders.
The club Lin Tung had claimed that the four founders had siphoned the club funds via directors’ and management fees to a company external firm, of which these men were shareholders, or beneficial shareholders.
In November 2012 billionaire Peter Lim won the appeal of the action, and the claim was rejected.