The collective sale of Sultan Plaza has been launched again in 2019 with the same reserve price of S$380 million.
The previous launch was in January which ended in March did not attract any buyer. The owners are disappointed but willing to go for another collective sale.
This time the success rate has increased due to new redevelopment options for the developers.
Recently the CSC of Sultan Plaza has made an outline application to URA for a proposed hotel development with 5.3 plot ratio.
The plot ratio for these 3 uses will be 5.0, which the land area of 52,471 sq ft site can be redeveloped up to Gross floor area of about 262,354 sq ft.
However, according to ERA Realty Network, the marketing agent for Sultan Plaza, they discover that the development baseline for en bloc site has been ascertained to be 244,667 sq ft, reflecting an approximate plot ratio of 4.66.
Thus, the new buyer needs to pay some differential premium in order to maximise the redevelopment potential for Sultan Plaza to 5.0 plot ratio
The amount of differential premium is round up to S$16.1 million for full commercial use, S$12 million for commercial and residential use and lastly S$57.5 million for hotel use.
Sultan Plaza is located within one of the popular tourist zones in Singapore. Kampong Glam for example is just across the road.
Besides, being close to many interesting places and attractions, the commercial site is easily accessible by 2 MRT stations; Nicoll Highway and Lavender.
Many property experts believe the best use of this site is to turn into Hotel development.
Sultan Plaza was built in May 1978, currently the 99-year leasehold property has balance lease term of about 58 years left.
The new developer needs to obtains approval from the authority for a top-up of the site’s lease and has to bear the cost.
The Sultan Plaza Public tender will close on August 1st, 2019.