SINGAPORE - A blockbuster deal backed by a Chinese commodities billionaire to purchase Far East Shopping Centre in the prime Orchard Road shopping district for about $908 million fell apart after plans for its redevelopment were rejected by the authorities, according to people with knowledge of the matter.

The collective sale involved a firm linked to Chinese tycoon Du Shuanghua, the people said, asking not to be identified because the matter is private. It collapsed after the parties failed to get approval from the Urban Redevelopment Authority (URA), they added.

The transaction was set to be Singapore’s largest for a commercial property in 2023, according to data compiled by Cushman & Wakefield. It was a rare big-ticket deal in a market that has been hit by reduced demand from institutional buyers due to high interest rates.

EdgeProp.sg, a property portal in Singapore, and The Business Times earlier reported the breakdown of the deal.

CBRE Group, which brokered it, did not immediately respond to requests for comment. Bright Ruby Resources, a commodities firm in Singapore controlled by Mr Du, could not immediately be reached for comment.

A prerequisite for the transaction had been the approval of additional gross floor area under Singapore’s so-called Strategic Development Incentive Scheme to rejuvenate areas in the city centre, including Orchard Road.

URA confirmed that it rejected the redevelopment proposal, saying the sole site did not fulfil the eligibility criteria.

The Strategic Development Incentive Scheme requires a proposal to include a minimum of two adjacent sites, such that the “amalgamated redevelopment can have a strong transformational impact that will enhance and rejuvenate the area”, the authority said in an e-mailed statement. BLOOMBERG