SHENTON House, a 99-year leasehold commercial building in the Central Business District (CBD), has been put up for collective sale at a reserve price of S$590 million.
Zoned for commercial use, the 36,350 square foot (sq ft) site on Shenton Way is eligible under the CBD incentive scheme for 25 per cent bonus gross floor area (GFA), and can be developed into a mixed-use or hotel development with a higher gross plot ratio (GPR) of 14.0. The current plot ratio is 11.2.
At the reserve price of S$590 million and accounting for a further estimated S$446 million for a land betterment charge and a lease top-up premium to a fresh 99-year lease, the land cost translates to about S$2,035 per square foot per plot ratio (psf ppr), said sole marketing agent JLL on Monday (Feb 6).
This would also factor in 40 per cent residential gross floor area in the future mixed-use development, on the higher gross plot ratio of 14.0.
If an additional 7 per cent bonus balcony GFA for the residential component is taken into account, the unit land rate would be around S$2,012 psf ppr.
The Shenton House site currently houses 203 commercial units and a car park. It is located outside Shenton Way MRT station and within a 10-minute walk to Downtown MRT station, Tanjong Pagar MRT station and Marina Bay MRT interchange. It is also near major expressways such as the Ayer Rajah Expressway and Marina Coastal Expressway.
Hotels in the area include The Westin Singapore, Sofitel Singapore City Centre and Hotel Telegraph, while several residential developments have come up in the CBD, including One Shenton, V on Shenton, Marina One Residences and Wallich Residence.
Along Shenton Way, the former AXA Tower site will turn into a 1.6 million sq ft mixed-use development with retail and office space, a hotel and 215 residential units. The residential component is expected to be launched for sale in the first half of this year. Meanwhile, 8 Shenton Way is being redeveloped by a Perennial-led consortium with Alibaba Singapore, Chip Eng Seng, Sing-Haiyi Emerald, Piermont and HPRY.
Tan Hong Boon, JLL executive director of capital markets, said Shenton House is “ideally positioned in the prime District 1, a well-established location for Grade A offices that appeal to large corporations”.
He pointed also to the demand for hospitality accommodation in the financial district post-pandemic, as well as the increasing emergence of residential developments within the CBD.
The tender for Shenton House closes on Apr 11 at 3 pm.