The site is ideally positioned in the prime District 1, a well-established location for Grade-A offices that appeals to large corporations, says Tan Hong Boon, executive director of capital markets at JLL. (Picture: JLL)
SINGAPORE (EDGEPROP) - Shenton House, a commercial building on Shenton Way in the CBD, has launched a collective sale tender with a reserve price of $590 million.
According to a press release from JLL, the sole marketing agent, the property’s unit land rate is based on the sites’ commercial zoning with a 40% residential gross floor area (GFA), and this reflects about $2,035 psf per plot ratio (ppr) at a gross plot ratio of 14.0.
This price includes the estimated $446 million cost of the land betterment charge and a lease top-up premium to a fresh 99-year land tenure. Moreover, if an additional 7% bonus balcony GFA for the residential component is included, the unit land rate will be approximately $2,012 psf ppr.
Under the CBD Incentive Scheme announced in 2019, the site is eligible for a 25% bonus GFA and can be redeveloped into a mixed-use or hotel development, at a gross plot ratio of 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,” says Tan Hong Boon, executive director of capital markets at JLL. “Developers can capitalise on the increasing demand for residences in mixed-use developments and provide luxury apartments with ground-floor retail and F&B to complement the office presence.”
Shenton House is on a 36,350 sq ft, rectangular-shaped site that boasts triple road frontages on Shenton Way, Park Street, and Shenton Land. The 99-year leasehold development currently consists of 203 commercial units and a carpark.
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Details of the site can be found on EdgeProp's Landlens analytics tool.
Neighbouring commercial buildings include Asia Square Towers 1 & 2, UIC Building, OUE Downtown, and SGX Centre. The upcoming IOI Central Boulevard Towers, Marina One mixed-use development, Capital Tower, and integrated development Guoco Tower are also in the vicinity. (Find Singapore commercial properties with our commercial directory)
MRT stations close to the site are Shenton Way on the Thomson-East Coast Line, Marina Bay Interchange on the North-South and Circle Lines, Downtown on the Downtown Line, and Tanjong Pagar on the East-West Line.
“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,” says Tan.
Check out the latest listings near Shenton House, Asia Square Tower 1, UIC Building, OUE Downtown, SGX Centre, Marina One, Capital Tower, Guoco Tower, Shenton Way MRT station, Marina Bay Interchange MRT station, Downtown MRT station, Tanjong Pagar MRT station