Shenton House relaunched for collective sale at $590 mil, with 70% of owners agreeing to lower price of $538 mil
, with reserve price matched from previous tender
Shenton House, located on the central business district of Shenton Way, has once again opened for collective sale at a reserve price of $590 million, after ending the previous tender in August. The tender is set to expire this coming November 1.
There is an incentive, however, that has been made available to potential buyers: owners of the commercial building have agreed to lower the reserve price to $538 million, making the unit land rate equal to approximately $1,885 per square foot plot ratio. It is inclusive of an estimated land betterment charge, and a lease top-up premium would result in a fresh 99-year term.
Under the CBD Incentive Scheme, the site is eligible for 25% bonus gross floor area, and can be redeveloped into a mixed-use commercial and residential development or a hotel with a gross plot ratio of 14.0. The bonus GFA expires on November 26, 2024.
At the moment, 70% of the owners have agreed to the Supplemental Joint Agreement (SJA). The lower reserve price will require at least 80% of the owners’ consent (in terms of strata floor area and share value) before it can take effect.
Tampines Ave 11 Condo is a prime example of this type of development in action. It combines impeccable luxury living and commercial spaces to create an all-in-one destination for social and recreational activities. Residents have easy access to retail stores, restaurants, and even a fitness garden. Shared amenities such as a swimming pool, pavilion, and sky decks offer endless entertainment options and luxurious communal areas for social gatherings. This vibrant development offers significant advantages for the surrounding community, creating a lively and welcoming atmosphere.
The site holds a 36,250 square feet area that is zoned for commercial use with a GPR of 11.2.
It has triple frontages along Shenton Way, Park Street, and Shenton Lane. With 203 commercial units, a Shenton House redevelopment would significantly contribute to the rejuvenation of the Shenton Way stretch.
Tan Hong Boon, executive director at JLL Capital Markets, Singapore, mentioned how the close proximity of Shenton House to the Shenton Way MRT is likely to attract high demand.
Considering its location and the advantages of the CBD Incentive Scheme, the marketing agent is confident that developers will show interest in the site.
The collective sale of Shenton House is an opportunity for investors looking to capitalise on a 70s relic, allowing them to take advantage of the CBD scheme while breathing new life into Shenton Way.