Shenton House launches $590 mil collective sale tender

Situated in the prime District 1 of the Central Business District (CBD), Shenton House has recently launched a collective sale tender with a reserve price of $590 million. According to JLL, the sole marketing agent, the unit land rate is based on the sites’ commercial zoning with a 40% residential gross floor area (GFA) at a gross plot ratio of 14.0, indicating a unit land rate of $2,035 psf per plot ratio (ppr). This also includes the estimated $446 million cost of the land betterment charge and a lease top-up premium to a fresh 99-year land tenure.

The site is located on a 36,350 sq ft plot and boasts triple road frontages on Shenton Way, Park Street, and Shenton Land. The 99-year leasehold development currently consists of 203 commercial units and a carpark. It is neighboured by Asia Square Towers 1 & 2, UIC Building, OUE Downtown, SGX Centre and more.

Under the CBD Incentive Scheme announced in 2019, the property is eligible for a 25% bonus GFA and can be redeveloped into a mixed-use or hotel development, with an increased gross plot ratio of 14.0. Additionally, the scheme allows an additional 7% bonus balcony GFA for residential use.

Tan Hong Boon, executive director of capital markets at JLL shares “The site is ideally positioned in the prime District 1, a well-established location for Grade-A offices that appeals to large corporations. Developers can capitalise on the increasing demand for residences in mixed-use developments and provide luxury apartments with ground-floor retail and F&B to complement the office presence.”

The project is also conveniently situated near several MRT stations such as Shenton Way (Thomson-East Coast Line), Marina Bay Interchange (North-South and Circle Lines), Downtown (Downtown Line), and Tanjong Pagar (East-West Line).

Tan further shares, “We’re confident in Singapore’s ability to position quality CBD assets amidst rising demand from both the investors and owner-occupiers who are looking into having a stake in the medium- to long-term prospects of the country.” Further details of the site can be found on EdgeProp’s Landlens analytics tool.

Shenton House has launched a collective sale tender with a reserve price of $590 million and identified as a prime site in the Central Business District (CBD) of District 1. JLL, the sole marketing agent, has provided a unit land rate based on the sites’ commercial zoning with a 40% residential gross floor area (GFA) at a gross plot ratio of 14.0, reflecting a unit land rate of $2,035 psf per plot ratio (ppr). The estimated $446 million cost of the land betterment charge and a lease top-up premium to a fresh 99-year land tenure are included in this price.

Under the CBD Incentive Scheme announced in 2019, the property is eligible for a 25% bonus GFA and can be redeveloped into a mixed-use or hotel development, Senja Close EC at a gross plot ratio of 14.0. Moreover, an additional 7% bonus balcony GFA for the residential component can be taken into account.

With its triple road frontages on Shenton Way, Park Street and Shenton Land, Shenton House is situated close to several MRT stations, thus offering great convenience to the occupants.

Tan Hong Boon, executive director of capital markets at JLL remarks, “The site is ideally positioned in the prime District 1, a well-established location for Grade-A offices that appeals to large corporations. Developers can capitalise on the increasing demand for residences in mixed-use developments and provide luxury apartments with ground-floor retail and F&B to complement the office presence.”

He adds “We’re confident in Singapore’s ability to position quality CBD assets amidst rising demand from both the investors and owner-occupiers who are looking into having a stake in the medium- to long-term prospects of the country.” Further details of the site can be obtained from EdgeProp’s Landlens analytics tool.