Shenton House En Bloc Sale 2023 – Prime D1 (CCR)
Shenton House, a prime commercial site in Singapore’s Central Business District, has been put up for collective sale with a S$590 million reserve price.
The 99-year leasehold commercial property on 3 Shenton Way, which sits on a land area of 36,350 sq ft, is zoned for commercial use and is eligible for a 25% bonus gross floor area (GFA) under the CBD incentive scheme.
It may be converted into a mixed-use development or hotel complex with a higher gross plot ratio (GPR) of 14.0. Currently, the plot ratio of the site is 11.2.
The land cost equals approximately S$2,035 psf ppr at the reserve price of S$590 million after accounting for an additional estimated S$446 million for a land betterment charge and a lease top-up premium to a new 99-year lease, according to sole marketing agent JLL on Monday (Feb 6).
On the larger gross plot ratio of 14.0, this would also take into account the eventual mixed-use development’s 40% residential gross floor area.
The unit land rate would be about S$2,012 psf ppr if an extra 7% bonus balcony GFA for the residential component were taken into consideration.
203 commercial units and a parking lot are presently housed on the Shenton House property.
The Downtown MRT station, Marina Bay MRT interchange, and Tanjong Pagar MRT are all within a 10-minute walk of the property, while Shenton Way MRT station is just in front of the en bloc site.
Additionally, it is close to important expressways like the Marina Coastal Expressway and the Ayer Rajah Expressway.
The Hotel Telegraph, Sofitel Singapore City Centre, and Westin Singapore are a few of the nearby hotels, while high-end developments such as Marina One Residences, V on Shenton, One Shenton, and Wallich Residence are just a few of the CBD’s recent residential projects.
The old AXA Tower site will be transformed into a 1.6 million square foot mixed-use complex featuring retail and office space, a hotel, and 215 residential apartments along Shenton Way. In the first part of this year, the residential component is anticipated to go on sale.
A Perennial-led group, together with Alibaba Singapore, Piermont, Sing-Haiyi Emerald, Chip Eng Seng, and HPRY is redeveloping 8 Shenton Way in the meantime.
Shenton House is perfectly situated in the prime district 1, a well-established location for Grade A offices that appeal to multinational firms, according to Tan Hong Boon, JLL’s executive director of capital markets.
He also mentioned the need for hospitality accommodations in the financial district after the epidemic and the growing number of residential developments inside the CBD.
Shenton House’s bid deadline is April 11, at 3 p.m.