In a significant development in Singapore’s en bloc sales market the first public tender for Golden Mile Complex will be launched even as the building is still be studied for a possible case of conservation.
It must be mentioned that the building which is of 1970s vintage is an urban landmark in Singapore famous for its inherent step-terraced design.
With 49 years left for its lease to expire the iconic building is being launched at S$800 million reserve price.
Interestingly DP Architects the original designers for Golden Mile Complex, one of their most famous projects have been hired as consultant architect for this collective sale.
The building which has 718 units occupies hectares of land and has been categorized for Commercial Use under the 2014 Master Plan.
Edmund Tie & Company are the marketing agent for this sale and Senior Director of Investment Advisory at the agency Ms Swee Shou Fern said that they were first informed about the conservation study during consultation with the URA (Urban Redevelopment Authority) whom they had approached to submit a planning application for the project.
She said that in the application submitted for seeking URA’s approval they had proposed retaining the 16-storey building and bringing up an additional block adjacent to it. This application was submitted about two months back.
Ms Swee said that Golden Mile Complex’s stature as a national monument shall stand as the new building would essentially complement the existing structure for which the agency is working with URA and DP Architects.
This will be a part of rejuvenation project on Beach Road corridor and the new development will only enhance its appeal.
She concluded by saying that en bloc sale for mega sites and that too heritage building is unparalleled and hence they would elongate the tendering process which would allow potential buyers do to their study and research before they bid on this project.
A spokesperson for the URA recently said that they have assessed the property and have arrived at the conclusion that it does have lot of heritage value.
In order to facilitate its conservation, they are in the process of engaging with different stakeholders.
However, the spokesperson refused to share details about these discussions. He further added that in Singapore’s case ‘modern architecture’ is very important part of the nation’s heritage which has been built over the years.
On URAs part they have been constantly identifying buildings that merit conservation and have been successful in conserving them. In every such case URA would engage with relevant stakeholders to prevent loss of heritage.
However, some analysts are of the opinion that a conservation status would dent the sale value in a collective sale.
They cite the recently announced cooling measures which have dented the mood in the residential market and most developers are attracted towards commercial properties.
Commercial properties had been kept outside the purview of the stringent measures taken to prevent a situation of oversupply in the market.
Alan Cheong, Director of Research and Consultancy at Savills Singapore believes that the conservation tag would make this property tricky for the developers.
They would need to be content with lesser saleable area and have to spend additionally on identifying parts of the property that needs to be conserved and what can be sold.
These cost variables further complicate the en bloc process for interested developers. Ku Swee Yong, CEO of International Property Advisor believes that most developers would push for lower reserve price that would make the site palatable for them given the increase in construction costs and other constrains that come with conservation tag.
As per the current S$800 million guide price 68 residential unit owners at Golden Mile Complex are expected to receive $1.27 million to $6 million per owner.
In case of the 418 shop unit owners they would pocket $200,000 to $7 million depending on the size of their units.
There are also 227 office units at this building and the owners are likely to receive between $360,000 and $3 million if the sale goes through.
As for the premium for lease upgrade and differential premium payable for intensification of the land these rates would be dependent on the proposed land use by the developer.
The tender exercise for Golden Mile Complex shall close on the 30th of January 2019 at 3 PM.
District 7 Singapore is a thriving Business district comprises of Bugis Street, Bencoolen Street, Beach Road, and Rochor.
Its place suitable for people who love to shop and would want to eat a variety of local foods.
The Middle Road is situated in the Central Area of the country. This is where Hainanese immigrants have stayed who have contributed to the Chinese Fare.
The Bencoolen Street can be found at the junction of Rochor Road up to the Fort Canning Road, Orchard Road, and Stamford Road. You can find here lots of hotels and popular landmarks in the country.
On the other hand, the Bugis Street is a combination of the old and new culture of Singaporeans.
Major developments were done in Bugis such as shopping malls, eateries, clubs, and stalls. It is also considered to be the education, arts, and entertainment area of the district.
Traveling to various landmarks in District 7 is very convenient because of great transportation available around the area.
MRT Stations like the Nicoll Highway, Lavender or Bugis MRT stations as well as taxis and buses.