SINGAPORE (EDGEPROP) - Sultan Plaza, a commercial site located at 100 Jalan Sultan, off Beach Road, has been relaunched for collective sale with a reserve price of $325 million, says marketing agent Teakhwa Real Estate.

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This is the third collective sale attempt for the 99-year leasehold development comprising 211 commercial units and 33 offices. In January 2019, the owners made their first attempt with a reserve price of $380 million. The development was subsequently relaunched for collective sale in July 2019 at the same reserve price. A second attempt was made last October when the development was put on the market with a reserve price of $360 million.

Currently, owners holding about 80% by strata area and 72% by share value have signed the supplemental agreement to lower the reserve price from $360 million to $325 million, says Teakhwa Real Estate.

Located in District 7, Sultan Plaza sits on a 52,471 sq ft site zoned for commercial use with a plot ratio of 5. It may be redeveloped to 153m above mean sea level.

An in-principle-approval has been received from the Singapore Land Authority for the potential sale of remnant state land adjoining the site that measures about 10,968 sq ft. Including this land, the area may be enlarged to approximately 63,440 sq ft.

The reserve price of $325 million works out to a land rate of  $1,546 per sq ft per plot ratio (psf ppr), including the estimated costs to buy the state land, the differential premium and the lease top-up premium. Considering the 8% bonus gross floor area (GFA), the land rate would adjust to $1,504 psf ppr.

Developers could turn the site into a 700-key hotel with ancillary commercial uses with an estimated GFA of 317,199 sq ft, says Teakhwa Real Estate. Alternatively, it may be redeveloped into a project with commercial and residential use, with the proposed commercial GFA capped at 40% of the total GFA.

“For a new mixed-use development with 20% commercial GFA and 80% residential GFA, this translates to about 63,440 sq ft of commercial space and some 253,759 sq ft for residential use housing about 277 apartment units at an average size of 915 sq ft, subject to the relevant authority's approval,” the marketing agent says. The new development is likely to be about 38 storeys high. (Find Singapore commercial properties with our commercial directory)

Teakhwa Real Estate adds that the closing date for the collective sale will be decided “only when there is confirmed interest from a potential buyer” or after the owners' 80% mandate has been obtained to sell at a lower reserve price.

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