Shenton House launches $590 mil collective sale tender

The tender for Shenton House closes on 12 May 2021.

The collective sale tender for Shenton House, a commercial building with a reserve price of $590 million, has been launched on Shenton Way in Singapore’s CBD. Sole marketing agent JLL detailed in a press release that the property’s unit land rate has been calculated by factoring in the site’s commercial zoning with a 40% residential GFA, which translates to $2,035 psf per plot ratio at a gross plot ratio of 14.0. This price tag includes the estimated $446 million cost of the land betterment charge and a lease top-up premium to a fresh 99-year land tenure, plus if an additional 7% bonus balcony GFA for the residential component Tengah Plantation EC is included, the unit land rate will be approximately $2,012 psf ppr.

This prime District 1 site is well-suited to the demand for Grade-A offices and large corporations. Tan Hong Boon, executive director of capital markets at JLL, points out the benefit of providing luxury residences with ground-floor retail and F&B to capitalise on the growing appeal of mixed-use developments.

Shenton House, at 36,350 sq ft, has triple road frontages on Shenton Way, Park Street, and Shenton Lane. There are 203 commercial units, a carpark, and neighbouring commercial buildings such as Asia Square Towers 1 & 2, UIC Building, OUE Downtown, SGX Centre, IOI Central Boulevard Towers, Marina One mixed-use development, Capital Tower, and Guoco Tower integrated development. Close to MRT stations 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.

The CBD Incentive Scheme announced in 2019 gives developers the chance to use the site for a mixed-use or hotel development, allowing for a 25% bonus GFA with a gross plot ratio of 14.0. Tan provides insight on Singapore’s ability to “position quality CBD assets amidst rising demand from both investors and owner-occupiers looking to have a stake in the country’s medium- to long-term prospects”.

The tender for Shenton House closes on May 12, 2021 and details of the site can be found on EdgeProp’s Landlens analytics tool.

Shenton House, located in Singapore’s prime District 1, offers developers an opportunity to 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. The site is eligible for a 25% bonus GFA through the CBD Incentive Scheme and is set to close its collective sale tender on 12 May 2021 with a reserve price of $590 million and estimated $446 million cost of the land betterment charge and a lease top-up premium to a fresh 99-year land tenure.

According to JLL’s executive director of capital markets, Tan Hong Boon, the country is capable of positioning quality CBD assets amidst rising demand from both investors and owner-occupiers. Tan adds that “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”.

Details of the property, including its 36,350 sq ft, rectangular-shaped site with triple road frontages, 203 commercial units, and carpark, can be found on EdgeProp’s Landlens analytics tool. The neighbouring commercial buildings include Asia Square Towers 1 & 2, UIC Building, OUE Downtown, and SGX Centre, as well as the nearby IOI Central Boulevard Towers, Marina One mixed-use development, Capital Tower, and Guoco Tower integrated development. Shenton House’s MRT stations are located near 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.

Developers can access the site through the collective sale tender and unlock the potentials of this prime District 1 location. With the inclusion of an additional 7% bonus balcony GFA, it will elevate the unit land rate to approximately $2,012 psf ppr, and the estimated $446 million cost of the land betterment charge factored in the reserve price.

Mark your calendar and don’t miss the chance to own a piece of this prime district. Get the details about the Reserve Price and Land Betterment Charge of Shenton House on EdgeProp’s Landlens tool, and submit your bid before the tender closes on 12 May 2021.