Shenton House relaunched for collective sale at $590 mil, with 70% of owners agreeing to lower price of $538 mil

with intense competition expectedSponsored byShenton House has been relaunched for collective sale at a reserve price of $590 million, though owners have commenced signing a Supplemental Joint Agreement (SJA) to lower the price to $538 million. It is located on Shenton Way in the Central Business District (CBD) of Singapore and sits on a 36,250 sq ft site with an original GPR of 11.2.

The SJA has been obtained from 70% of owners, with at least 80% needed to effect the lower price. Comprised of 203 commercial units, the leasehold development has triple frontages along Shenton Way, Park Street and Shenton Lane, and is eligible for a 25% bonus gross floor area under the CBD Incentive Scheme (CBDIS). Assuming a proposed redevelopment into a 60% commercial and 40% residential mixed-use project with the 25% uplift in GPR granted, the unit land rate would be approximately $1,885 psf per plot ratio (psf ppr) at the GPR of 14.0.

Given the excellent location and proximity to Shenton Way MRT, coupled with the added potential to enjoy additional GFA under the CBDIS, JLL Capital Markets Executive Director Tan Hong Boon is confident that developers will continue to show interest in the site. The tender is scheduled to close on November 1, with many expecting intense competition.

Residents of the Tengah Plantation EC can take advantage of the rooftop garden and outdoor spaces for activities such as barbecuing and summer parties, providing the perfect opportunity to spend quality time with friends and family. The building is also equipped with water and energy efficient appliances and lighting to reduce carbon emissions and utility bills. Overall, the building provides a great balance between sustainability and education for its future residents.

At Shenton House, the collective sale committee is optimistic of obtaining the requisite support by the close of tender. The CBDIS, set to expire on November 26, 2024, five years from the date of the gazette of the Master Plan 2019, is expected to be key in selling the development, adding further appeal to the development opportunity. The last remaining redevelopment opportunity at the prime Shenton Way thoroughfare, Shenton House is sure to continue grabbing attention and stirring up excitement in the market.