>

Shenton House relaunched for collective sale at $590 mil, with 70% of owners agreeing to lower price of $538 mil

/ EdgeProp Singapore |

October 20, 2023 11:24 AM SGT

Shenton House has relaunched for collective sale with a reserve price of $590 million (Picture: Samuel Isaac Chua/The Edge Singapore)

Join our Telegram channel and follow our Facebook for the latest update.

SINGAPORE (EDGEPROP) - Shenton House, a commercial building on Shenton Way in the CBD, has been relaunched for collective sale at a reserve price of $590 million, with the tender to close on Nov 1. The price remains unchanged from the previous tender which launched in late June and closed on Aug 1.

While the current reserve price is at $590 million, owners have commenced signing a Supplemental Joint Agreement (SJA) to lower the reserve price to $538 million, which reflects a unit land rate of approximately $1,885 psf per plot ratio (psf ppr) at the gross plot ratio (GPR) of 14.0, inclusive of an estimated land betterment charge and a lease top-up premium to a fresh 99-year term, assuming a proposed redevelopment into a 60% commercial and 40% residential mixed-use project under the CBD Incentive Scheme (CBDIS) with 25% uplift in GPR granted.

Map showing Shenton House (Source: EdgeProp LandLens)

Support for the SJA has been obtained from 70% of owners, says the appointed marketing agent JLL. The lower proposed reserve price would require at least 80% of the owners’ support (by strata floor area and by share value) to take effect. “The collective sale committee is confident of obtaining the requisite support by the close of tender,” JLL adds.

Shenton House sits on a 36,250 sq ft site zoned for commercial use with a GPR of 11.2. The site has triple frontages along Shenton Way, Park Street and Shenton Lane. The 99-year leasehold development consists of 203 commercial units and a carpark.

Under the CBDIS, the site is eligible for 25% bonus gross floor area and can be redeveloped into a mixed-use commercial with residential development or a hotel with a GPR of 14.0. The CBDIS is set to expire on Nov 26, 2024, five years from the date of the gazette of the Master Plan 2019.

“Shenton House is the last remaining redevelopment opportunity at this stretch of the prime Shenton Way thoroughfare. The high demand for brand new Grade A office spaces in the CBD, coupled with complementary uses such as a premier business hotel or residential apartments, will further contribute to the rejuvenation of Shenton Way,” says Tan Hong Boon, executive director at JLL Capital Markets, Singapore.

“Given the site’s stellar location and seamless connection to Shenton Way MRT, coupled with the added potential to enjoy additional GFA under the CBDIS, we are confident that developers will continue to show interest in the site,” Tan continues.