Shenton House Sold En Bloc To IOI Properties Lee Yeow Seng

Shenton House Sold En Bloc To IOI Properties Lee Yeow Seng Facebook

Shenton House Sold En Bloc for S$538 Million to Malaysia’s IOI Properties’ Lee Yeow Seng

Following the Record-Breaking Sale of Far East Shopping Centre, Singapore’s Prime Commercial Sector Draws Another Major Player with the Acquisition of Shenton House in Prestigious District 1

Singapore’s real estate landscape has witnessed another significant transaction as Shenton House, nestled in the heart of the Central Business District (CBD), has been sold en bloc for S$538 million.

This en bloc sale, expertly facilitated by JLL, the sole marketing agent, marks the property’s third attempt at a public tender, with the deal closing on November 1st.

The buyer, Shenton 101 Pte Ltd, is a private entity owned by Lee Yeow Seng, the Group Chief Executive Officer of IOI Properties Group (IOIPG), a notable name listed on Bursa Malaysia Securities.

Lee Yeow Seng opted for a personal acquisition through Shenton 101 Pte Ltd., citing the acquisition’s scale and the collective sales committee’s tight timeline as pivotal reasons.

This strategic move is not just a personal venture for Lee but a complementary addition to IOIPG’s already significant presence in the Marina Bay area, highlighted by notable projects like IOI Central Boulevard Towers, W Marina Bay, and Marina View Residences.

The acquisition and planned redevelopment of Shenton House align perfectly with IOIPG’s existing investments, enhancing its footprint in the Marina Bay vicinity.

Shenton House’s Redevelopment Potential

Shenton House, a commercial landmark with a rich history dating back to the 1970s, stands on leasehold land spanning 36,250 sq ft along the prominent Shenton Way.

Its potential for redevelopment is amplified by the CBD Incentive Scheme (CBDIS), which allows a 25% bonus on gross floor area (GFA), translating to a gross plot ratio of 14.

This opens up possibilities for a mixed-use commercial space featuring luxury residential units or a hotel, thereby rejuvenating the CBD core with modern, low-carbon office spaces and upscale residential rentals.

A Vision for Prime Offices and Luxury Residences

Lee Yeow Seng’s vision for the site is ambitious. He plans to transform the over half-million-square-foot GFA of Shenton House into a prime Grade A office space coupled with luxury-branded serviced residences.

This reflects his steadfast confidence in Singapore’s prime office sector and the residential rental market, a sentiment that resonates with Singapore’s stature as a leading financial and business hub in Asia.

Financial Aspects and Conditions of the Sale

The sale, initiated at a reserve price of S$538 million, below the earlier reserve of S$590 million, reflects a land rate of about S$1,889 per square foot per plot ratio (psf ppr), considering the costs for land betterment charge and lease top-up premium to a fresh 99-year lease.

Taking into account an allocation of 60 percent for commercial use and 40 percent for residential use in the mixed-use project under the CBDIS, the total effective cost of acquisition is estimated to approach the S$960 million mark for the proposed development.

The acquisition is subject to a statutory five-day cooling-off period and is contingent on approval from the Strata Titles Boards or the Court.

A Prime Redevelopment Opportunity

Shenton House stands as the last remaining redevelopment opportunity on the Shenton Way stretch, as a statement by Tan Hong Boon, JLL’s Executive Director of Capital Markets, further accentuates.

The envisaged development aims to bridge the gap in the demand for quality office spaces and luxury rental housing in the area, contributing significantly to the ongoing rejuvenation of Shenton Way.

Reflecting Confidence in Singapore’s Real Estate Market

The successful en bloc sale of Shenton House follows in the footsteps of other notable transactions like the Far East Shopping Centre, reflecting a burgeoning confidence among commercial property owners in Singapore’s real estate market.

As developers and investors like Lee Yeow Seng of IOI Properties Group continue to recognize and capitalize on Singapore’s robust fundamentals, the nation’s skyline is set for a transformative trajectory, heralding a new era of urban redevelopment and architectural excellence.

Shenton House Sold En Bloc To IOI Properties Lee Yeow Seng Instagram

The Cumulative Acquisition Expenses, Encompassing the Land Betterment Charge and Lease Renewal, are Anticipated to Approach S$960 Million

With the implementation of the CBD Incentive Scheme, Shenton House is poised to witness its gross plot ratio escalate to 14.0.

With The Implementation of The CBD Incentive Scheme, Shenton House is Poised to Witness its Gross Plot Ratio Escalate to 14.0

Far East Shopping Centre Sold En Bloc To Tycoon Du Shuanghua For S$908 Million

The Unprecedented Sale of The Far East Shopping Centre Has Ignited a Trend, Prompting Numerous Commercial Property Owners to List Their Assets on the Collective Sale Market

Latest Properties and Land For Sale

Exploring the Foundations and Leadership of IOI Properties Group and Lee Yeow Seng

The Pillars of the IOI Properties Group

IOI Properties Group Berhad (IOIPG), an acclaimed entity among Malaysia’s top-ten property developers, boasts a rich legacy exceeding four decades in the realm of property development.

The Group’s diversified portfolio spans across three pivotal segments: property development, property investments, and hospitality and leisure, with a geographical footprint that stretches from Malaysia to the bustling markets of Singapore and the vibrant landscapes of Xiamen in the People’s Republic of China (PRC).

Central Boulevard Towers is a prestigious development by IOI Properties Group

Central Boulevard Towers is a prestigious development by IOI Properties Group. 

  • Commitment to Sustainability

    With sustainability at its core, IOIPG’s investment properties, including office buildings and high-rise commercial developments, are meticulously designed to align with the Green Building Index (GBI) or to achieve Green Mark certification.

    Embracing international standards, the Group adheres to ISO 9001:2015 in its property development endeavors and benchmarks its projects against the stringent Quality Assessment System in Construction (QLASSIC) certification by the Construction Industry Development Board (CIDB).

  • Property Development Ventures

    Over the years, IOIPG has carved a niche for itself by developing sustainable townships and commercial enclaves in Malaysia’s prime regions of the Klang Valley.

    Its influence also extends to Johor, in the southern region, and Penang, in the northern corridor. Internationally, the group’s success stories include significant milestones achieved in Singapore and Xiamen, PRC.

  • Property Investments

    The Group’s property investment portfolio is a testament to its prowess, featuring the GBI-certified IOI City Mall, Putrajaya, the largest retail mall in Malaysia, along with IOI Mall Puchong, IOI Mall Kulai, Johor, and IOI Mall Xiamen, PRC.

    Beyond malls, IOIPG’s investment ventures encompass retail spaces and offices, including IOI City Towers and Puchong Financial Corporate Centre (PFCC), among others.

  • Hospitality and Leisure

    IOIPG’s hospitality sector is embellished with five premium hotels, offering over 1,800 keys, including Le Méridien Putrajaya, Putrajaya Marriott Hotel, Four Points by Sheraton Puchong, Palm Garden Hotel, Putrajaya, A Tribute Portfolio Hotel, and JW Marriott Hotel Singapore South Beach.

    Complementing its hotel segment, IOIPG boasts prestigious golf courses, namely Palm Garden Golf Club in IOI Resort City, Putrajaya, and Palm Villa Golf and Country Resort in Johor.

Leadership Insight: Lee Yeow Seng

At the helm of IOI Properties Group Berhad is Mr. Lee Yeow Seng, serving as the Chief Executive Officer (CEO).

His journey with IOIPG began on February 25, 2013, as an executive director. After a brief hiatus as Executive Vice Chairman, Mr. Lee reassumed his role as CEO, steering the group with his visionary leadership and extensive experience.

Educational and Professional Background

Mr. Lee Yeow Seng, a barrister-at-law from the Bar of England & Wales by Inner Temple, holds an LLB (Honours) from King’s College London.

His professional journey includes a two-year stint in the London and Singapore offices of a leading international financial services group.

Since his transition to the IOI Group, Mr. Lee has been deeply involved in corporate affairs and general management, significantly contributing to the group’s growth trajectory.

Mr. Lee Yeow Seng is Chief Executive Officer (CEO) of IOI Properties Group

Mr. Lee Yeow Seng is the Chief Executive Officer (CEO) of IOI Properties Group

Strategic Role and Contributions

As CEO, Mr. Lee’s primary responsibility revolves around the oversight of management and business operations within IOIPG.

His role is pivotal in formulating and executing the group’s strategic initiatives and engaging in long-term planning. His profound expertise and leadership are instrumental in navigating IOIPG through the ever-evolving landscape of the property development industry.

In addition to his leadership at IOIPG, Mr. Lee also serves as a Non-Independent Non-Executive Director of IOI Corporation Berhad, further solidifying his influential presence in the corporate sphere.

In conclusion, the synergy between IOI Properties Group’s robust foundation and Mr. Lee Yeow Seng’s strategic leadership positions the group at the forefront of the property development industry, continually shaping the skylines of Malaysia, Singapore, and China with sustainable and innovative projects.

Commercial En Bloc Sales Gain Momentum Once Again in Singapore

The real estate market in Singapore is witnessing a remarkable resurgence in the commercial en bloc sales arena, marking a significant uptick in investor confidence and strategic real estate acquisitions.

This trend is emblematic of the robust recovery and the potent allure that the Singaporean commercial property market holds for both local and international investors.

The GSM Building at Middle Road has been acquired by Coliwoo (TK), an indirect fully owned subsidiary of Singapore-listed LHN, through a collective sale for S$80 million

First Commercial Site To Be Sold in 2023 Was GSM Building at S$80 million

GS Building Lorong Ampas Site Sold En Bloc to JVA Venture Instagram

Follow by GS Building at Lorong Ampas. JVA Venture Acquired for S$67 million

Far East Shopping Centre Sold En Bloc To Tycoon Du Shuanghua For S$908 Million

Far East Shopping Centre Was the Third Sites That Found a Buyer, It Was Sold at a Record Price.

Shenton House Sold En Bloc To IOI Properties Lee Yeow Seng Instagram

Shenton House is the Latest Site to Join the Successful En Bloc List

The Fourth Commercial En Bloc Sold in 2023

In a year that’s shaping up to be a defining one for commercial real estate transactions, Singapore has already seen the completion of its fourth commercial en bloc sale.

This marks a continued trajectory of growth and vibrancy in the sector, highlighting the city-state’s appeal as a prime destination for commercial investment.

The recent en bloc sales underscore a renewed enthusiasm in the market, as developers and investors alike are actively seeking opportunities to capitalize on the strategic locations and potential for redevelopment that these properties offer.

The trend also reflects a broader economic optimism as Singapore continues to position itself as a global business hub.

Why the Sudden Surge in Commercial En Bloc Sales?

Several factors are contributing to the renewed interest in commercial en bloc sales in Singapore:

  • Economic Recovery: Following the global downturn caused by the pandemic, Singapore’s economy is on a recovery path, instilling confidence among investors.

  • Limited Supply of Commercial Spaces: There’s a growing demand for commercial spaces, but with limited new supply in the pipeline, investors are turning to en bloc sales as a viable alternative.

  • Government Incentives: Initiatives like the CBD Incentive Scheme have encouraged redevelopment of older commercial buildings, making en bloc sales more attractive.

  • Strategic Redevelopment Potential: Many of these older commercial properties are in prime locations, offering investors the potential for significant returns on redevelopment.

The Implications of This Trend

The resurgence in commercial en bloc sales has several implications for Singapore’s real estate market:

  • Urban Renewal: The trend is likely to lead to the rejuvenation of older commercial districts, aligning with the government’s vision for urban renewal.

  • Market Confidence: The uptick in en bloc sales is a strong indicator of market confidence, suggesting that investors are bullish about the long-term prospects of Singapore’s commercial property sector.

  • Price Benchmarks: Each successful en bloc sale can set new price benchmarks, potentially increasing property valuations in the surrounding areas.

  • Increased Competition: With more players entering the market, competition for prime en bloc sites is likely to intensify, possibly leading to higher bids and a more dynamic market.

Looking Ahead

As Singapore continues to cement its position as a leading global city for business, the commercial real estate sector is poised for sustained growth.

The increasing frequency of en bloc sales not only reflects the market’s current dynamism but also signals a positive outlook for the future.

Investors, developers, and stakeholders will be keeping a keen eye on this trend as it unfolds, ready to seize the opportunities that the burgeoning Singaporean commercial property market presents.

En Bloc Properties Sold in 2023

  1. Noel Building
  2. Shenton House
  3. Kew Lodge 
  4. GSM Building 
  5. GS Building
Shenton House En Bloc All Details
  • Status: SOLD

  • Tenure: 99-year leasehold

  • Land Size: 36,350 sq ft

  • Total Units: 203

  • Gross Plot Ratio: 14.0 (CBD incentive scheme +25%)

  • Nearby MRTs: Shenton Way, Tanjong Pagar, Downtown & Marina Bay

  • Address: 3 Shenton Way

  • District: 1

  • Singapore Region: Core Central Region (CCR)

  • Marketing Agent: JLL Singapore

  • Reserve Price: S$538 million

  • Sale Price: $538 million

  • Date of Sale: November 2023

  • Buyer: IOI Properties’ Lee Yeow Seng

  • New Development: TBA

2024-01-20T09:45:43+08:00November 2nd, 2023|2023|
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