Shenton House Relaunches Collective Sale in 2023
Shenton House’s owners are putting the commercial property up for collective sale for the third time, with an unaltered target price of $590 million.
However, proposals are in the works to reduce the reserve price by 9.5% to $538 million.
JLL, its sole marketing agency, said in a statement on Monday that more than half of the owners had signed the supplementary joint agreement, indicating their approval for the reduced reserve price.
The owners’ support must be at least 80% in order for the reduced reserve price to be approved.
The last offer for the property expired in April 2023 with no bids, and the owners began private treaty negotiations.
Tan Hong Boon, executive director of capital markets at JLL, said at the time that both local and overseas developers were interested.
If the reserve price is reduced to $538 million, the land rate at a gross plot ratio (GPR) of 14.0 will be $1,898 psf ppr. This includes a land betterment charge and a lease top-up premium for a new 99-year lease.
The land rate is $2,035 psf ppr at $590 million.
Previously, in March 2012, the prime commercial property was listed for en bloc sale with an approximate price of $530 million.
Shenton House is a 99-year leasehold property on Shenton Way, located on a 36,250-square-feet commercial-zoned site. According to the Urban Redevelopment Authority’s Master Plan 2019, it has a plot ratio of 11.2.
The commercial site qualifies for a 25% bonus gross floor area under the CBD Incentive Scheme until November 26, 2024, when it may be converted into a mixed-use or hotel development with a higher GPR of 14.0.
The Shenton House enbloc site is situated just outside the Shenton Way MRT station, and it is a short walk to the Downtown, Tanjong Pagar, and Marina Bay MRT stations.
It’s also close to expressways like the Ayer Rajah Expressway and the Marina Coastal Expressway.
According to JLL, the property’s outstanding position along Shenton Way is perfect for Grade A offices that appeal to multinational firms, with a hotel development being another redevelopment possibility.
The tender for the Shenton House site is due to conclude on August 1 at 3 p.m.