Shenton House relaunched for tender, owners resigning at lower Reserve Price of $538 million
Commercial site with triple frontages along Shenton Way with potential for 25% bonus GFA under the CBD Incentive Scheme.
SINGAPORE, 26 June 2023 – Shenton House, a commercial collective sale site at Shenton Way, is relaunching for sale by tender by sole marketing agent JLL.
Owners have begun signing a Supplemental Joint Agreement (“SJA”) at $538 million, which reflects a unit land rate of $1,898 per square foot per plot ratio (psf/pr) at the Gross Plot Ratio (“GPR”) of 14.0, inclusive of the estimated land betterment charge and lease top-up premium (to a fresh 99-year term). This is close to 10% lower than the current Reserve Price of $590 million.
Within less than a month of signing the SJA, over 50% of owners’ signatures has already been obtained. The lower proposed reserve price would require at least 80% of the owners’ support to take effect.
The 36,250 sqft site is zoned “Commercial” at a Gross Plot Ratio (“GPR”) of 11.2 in the Master Plan 2019 and no Additional Buyer’s Stamp Duty will be payable for the purchase of the site.
Under the CBD Incentive Scheme (“CBDIS”), the site is eligible for a 25% bonus Gross Floor Area (“GFA”) and can be redeveloped into a mixed-use or hotel development of GPR 14.0. The CBDIS is set to expire 26 November 2024, five years from the date of gazette of the Master Plan 2019.
Shenton House’s prime location along Shenton Way is ideal for Grade A offices appealing to large corporations. The recent excellent performance at Solitaire on Cecil, with entire floors transacting at prices above $4,000 psf, reflects investors and owner-occupiers’ unwavering confidence in quality commercial assets in the CBD.
Another compelling redevelopment option under the CBDIS would be a premier hotel, with the likes of The Westin Singapore or Sofitel Singapore City Centre. The resumption of business travel post-pandemic has led to a strong demand for such short-term accommodation in the financial district.
“In line with the Urban Redevelopment Authority’s plan for more “Live, Work, Play” in the CBD, in addition to prime Grade A office, the redevelopment of Shenton House would be an ideal opportunity to further rejuvenate the CBD with integrated city living with apartments and/or serviced apartments, capitalising on the increase in supporting infrastructure and amenities in the vicinity,” commented Mr Tan Hong Boon, Executive Director at JLL Capital Markets.
The Property is seamlessly connected, with Shenton Way MRT Station at its doorstep and is a short walking distance to Downtown, Tanjong Pagar, and Marina Bay MRT Stations. It is also well served by major roads and expressways, including Ayer Rajah Expressway (AYE) and Marina Coastal Expressway (MCE).
The tender for Shenton House closes on Tuesday, 1 August 2023 at 3.00 p.m.
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.9 billion and operations in over 80 countries around the world, our more than 103,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.