Shenton House was previously launched for collective sale in February with a reserve price of $590 million (Picture JLL)
SINGAPORE (EDGEPROP) - Shenton House, a commercial building on Shenton Way in the CBD, has been relaunched for collective sale at the current reserve price of $590 million, with the tender to close on August 1.
However, over 50% of the owners have signed a supplemental joint agreement with a lower reserve price of $538 million within less than a month, says the appointed marketing agent, JLL. The lower reserve price will only take effect when at least 80% of the owners agree to it. The price tag of $538 million represents an 8.8% reduction from the current reserve price of $590 million.
The lower reserve price works out to a land rate of $1,898 psf per plot ratio (psf ppr) based on a gross plot ratio (GPR) of 14. The land rate includes the estimated land betterment charge and lease-top premium for a new 99-year term.
Map of Shenton House. The site is close to a Government Land Sales white site at Marina View (in purple) that was sold to IOI Properties for $1.508 billion in 2021 and the site of the former AXA Tower (in orange) which is being redeveloped by a consortium led by Perennial Holdings (Source: EdgeProp LandLens)
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. (Find Singapore commercial properties with our commercial directory)
Under the CBD Incentive Scheme, the site is eligible for 25% bonus gross floor area and can be redeveloped into a mixed-use or hotel development with a GPR of 14.0. The CBD Incentive Scheme is set to expire on Nov 26, 2024, five years from the date of the gazette of the Master Plan 2019.
“In line with the URA’s plan for more ‘Live, Work, Play’ in the CBD, in addition to prime Grade A offices, the redevelopment of Shenton House would be an ideal opportunity to further rejuvenate the CBD with integrated city living with apartments and serviced apartments, capitalising on the increase in supporting infrastructure and amenities in the vicinity,” says Tan Hong Boon, executive director at JLL Capital Markets.
Recent transactions at Shenton House (Source: EdgeProp Research)
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