The collective sale of freehold Tan Boon Liat Building has moved into private treaty talks, after a tender closed on Tuesday (Mar 18) with no bids at the asking price of S$1.15 billion.  

The Business Times understands that there were expressions of interest for the large plot, and parties have now entered a 10-week private treaty period due to conditions placed.

The Urban Redevelopment Authority (URA) had advised that building owners consider rezoning the site to residential with commercial use on the first storey, and for the plot ratio to be raised from 3.1 to 4.9, marketing agent Cushman & Wakefield said.

Cushman & Wakefield estimates that a land betterment charge of around S$830 million to S$840 million is payable for the rezoning and extra gross floor area (GFA), which would bring the land cost to S$1,888 per square foot per plot ratio and take the effective acquisition cost to up to S$1.99 billion. 

According to an outline planning advice document seen by BT, URA indicated that rezoning of the site from Business 1 to residential with commercial on the first storey may be supported, subject to compliance with planning and urban design requirements.

If approval is granted, the new owner of the 15-storey building could benefit from a massive 50 per cent uplift in the total allowable GFA.

Potential purchasers would also be able to amalgamate a few remnant state land plots to the site, allowing them to obtain a site of up to over 1,055,399 sq ft of GFA, including bonus GFA. 

Frequented by furniture buyers, Tan Boon Liat Building is next to Havelock MRT station and sits on a site area of about 175,655 sq ft.

Potential purchasers would be able to build up to 1,500 sq m of commercial GFA on the first storey, and are required to set aside at least 15,000 sq m for long-term serviced apartments.