Shenton House, a commercial collective sale site in the CBD, launched for tender
Situated in the heart of the financial district with potential for bonus GFA under the CBD Incentive Scheme.
SINGAPORE, 6 February 2023 – JLL has been named as the sole marketing agent for Shenton House, a commercial collective sale site in the heart of the Central Business District (“CBD”), that is launching for sale by tender.
Spanning 36,350 sqft, the rectangular corner site boasts excellent visibility with prominent triple road frontages along Shenton Way (91 metres), Park Street (37 metres) and Shenton Lane. The 99-year leasehold development currently comprises 203 commercial units and a carpark.
Zoned “Commercial” at a gross plot ratio (“GPR”) of 11.2 in the Master Plan 2019, no Additional Buyer’s Stamp Duty is payable for the purchase of the site. Under the CBD Incentive Scheme, the site is eligible for 25% bonus gross floor area (“GFA”) and can be redeveloped into a mixed-use or hotel development of GPR 14.0.
“The site is ideally positioned in the prime District 1, a well-established location for Grade A offices that appeals to large corporations. Its quality neighbours include Asia Square, Marina One, UIC Building, Capital Tower, Guoco Tower, the upcoming IOI Central Boulevard Towers and the redevelopment of 8 Shenton Way. Developers can capitalise on the increasing demand for residences in mixed-use developments and provide luxury apartments with ground floor retail and food and beverages users to complement the office presence. With stronger demand for hospitality accommodations in the financial district post Covid-19, developers can consider redeveloping the site into a premier hotel popular with both business travellers and tourists alike in this sought-after location”, commented Mr Tan Hong Boon, Executive Director of Capital Markets at JLL.
Some premier CBD hotels in the vicinity include The Westin Singapore, Sofitel Singapore City Centre and Hotel Telegraph. In line with the Urban Redevelopment Authority’s plan for more “Live, Work, Play” in the CBD, city living has become more vibrant in recent years. There has been an increasing emergence of residential developments within the CBD, including projects like One Shenton, V on Shenton, Marina One Residences and Wallich Residence.
Various open spaces and greenery have also been strategically placed to integrate nature into the CBD. From exercise classes held at the open areas at Guoco Tower and Tanjong Pagar Centre to boardwalks along the Marina Bay Waterfront Promenade, a wide array of brighter spaces has been made available to the working crowd and residents.
The site enjoys seamless accessibility with the newly operational Shenton Way MRT Station along the Thomson-East Coast Line (TEL) at its doorstep. It is also less than 10 minutes’ walk to Downtown MRT Station, Tanjong Pagar MRT Station and Marina Bay MRT Interchange. Additionally, major expressways such as the Ayer Rajah Expressway (AYE) and Marina Coastal Expressway (MCE) have increased the connectivity of the site further.
A plethora of food and beverage options are readily available within the vicinity, ranging from local food at Amoy Food Centre and Lau Pat Sat, to restaurants along Tanjong Pagar Road and Asia Square Food Garden. The site is also within close proximity to popular lifestyle destinations such as the world-renowned Marina Bay Sands, Gardens by the Bay and Marina Barrage.
To cater to those pursuing a more active lifestyle, several gyms can be found nearby, including Boulder Movement and Absolute Cycle at OUE Downtown, while outdoor choices like Marina Bay Golf Course and water sports at Marina Bay are also popular options.
“Given Singapore’s established status as a safe haven destination amidst the post-pandemic environment and uncertainties caused by geopolitical conflicts, inflation and rising interest rates, the market stands in good stead. We’re confident in Singapore’s ability to position quality CBD assets amidst rising demand from both the investors and owner-occupiers who are looking into having a stake in the medium to long term prospects of the country,” added Mr Tan.
At a reserve price of $590 million, Shenton House’s unit land rate based on “Commercial” zoning with 40% Residential GFA reflects about $2,035 per sq ft per plot ratio (psf/pr) at the GPR of 14.0, inclusive of the estimated $446 million for a land betterment charge and a lease top-up premium (to a fresh 99-year term). Factoring an additional 7% bonus balcony GFA for the residential component, the unit land rate will be around $2,012 psf/pr.
The tender for Shenton House closes on Tuesday, 11 April 2023 at 3.00 p.m.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $19.4 billion, operations in over 80 countries and a global workforce of more than 102,000 as of September 30, 2022. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.