Sultan Plaza to relaunch collective sale with approval for hotel use
By Timothy Tay
/ EdgeProp |
Sultan Plaza will launch its second collective sale tender on July 11, following its initial launch in January this year. The reserve price for the development is unchanged at $380 million, which translates to $1,860 psf per plot ratio. The mixed-use site at 100 Jalan Sultan can now be redeveloped for hotel, mixed commercial-residential, or full commercial use, according to marketing agent ERA Realty Network.
Sultan Plaza is a 244-unit, strata-titled development on a 99-year leasehold site that is currently zoned for commercial use under the 2019 Draft Master Plan. With its latest Outline Planning Permission approval, the new development could be developed up to a gross floor area of about 262,354 sq ft.
“Given Sultan Plaza’s strategic location, there is strong interest from developers, especially as it has been approved for hotel usage. This site presents a lot of architectural possibilities as it offers a multitude of options for redevelopment concepts,” says Jeremy Rikas Chiu, group division director at ERA.
The mixed-use site at 100 Jalan Sultan has received planning permission to be redeveloped for hotel, mixed commercial-residential, or full commercial use (Picture: ERA Realty Network)
During the previous collective sale tender, potential buyers had already indicated an interest in developing Sultan Plaza into a hotel with commercial components, or into a hotel with commercial and service apartments, he says.
A differential premium (DP) of about $57.5 million is estimated to be payable to intensify the land use for a new hotel development. A new mixed-use development with residential and commercial components could require an estimated $12 million in DP charges, and a full commercial building is estimated to amount to DP of $16.1 million.
However, the actual payable premiums and lease top-ups will depend on the developer’s proposed land-use mix and planning approval from the relevant authorities. A Pre-Application Feasibility Study will also not be required for the redevelopment.
The tender closes on Aug 1.
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