International Plaza collective sale makes history with S$2.7b reserve price

Citi Commercial Pte Ltd

INTERNATIONAL Plaza has been put up for collective sale via tender with a reserve price of S$2.7 billion. If sold, it could become Singapore's largest collective sale in history in terms of the number of units and value.

The launch comes weeks after sole marketing agent Edmund Tie first announced that it garnered requisite owners consent for the first attempt at a collective sale.

It was previously reported in 2018 that owners were looking to launch the collective sale in excess of S$2.6 billion. This was before they were met with pandemic-related delays. (see amendment note)

The final S$2.7 billion price tag translates to a land rate of S$2,448 per square foot per plot ratio (psf ppr) based on existing gross floor area (GFA).

If the collective sale committee (CSC) gets approval for a 25 per cent intensification in gross floor area under the Central Business District (CBD) scheme, the land rate will work out to about S$2,170 psf ppr.

The 50-storey International Plaza comprises 962 shop units, offices, apartments as well as a strata-titled carpark and a strata-titled swimming pool.

The mixed-use development, which was completed in the 1970s, has an existing GFA of about 1.4 million square feet (sq ft) and an equivalent plot ratio of 19.24. It sits on a plot spanning 75,089 sq ft which is zoned for commercial use, at a plot ratio of 10.5 and building height control of up to 250 metres.

International Plaza meets the three eligibility criteria to qualify for the CBD Incentive Scheme - building age, current land use and site area. Thus, the CSC has submitted an outline application to the Urban Redevelopment Authority (URA) for a 25 per cent intensification in GFA, based on "commercial with 40 per cent non-commercial uses such as residential".

Swee Shou Fern, Edmund Tie's head and executive director of investment advisory, said International Plaza represents the last strategic corner plot with main road frontage at the gateway of the Tanjong Pagar precinct.

The property's existing commercial zoning under the URA Master Plan 2019 also means there is no additional buyer's stamp duty payable for purchase, as well as no restriction on foreign ownership.

The collective sale tender will close on Nov 30, 3pm.

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