Golden Mile Complex Launched For En Bloc Sale
SINGAPORE – The Golden Mile Complex has been launched for collective sale with a reserve price of S$800 million, announced marketing agent Edmund Tie & Company on Tuesday afternoon (30 November, SGT).
This marks the second en bloc sale attempt of the mixed-use property. The first one ended in July 2019, with 2 tenders in the first round of the collective sale exercise receiving zero bids.
The latest en bloc sale attempt comes after the Golden Mile Complex was declared as a conserved building by the Urban Redevelopment Authority (URA) on 22 October 2021. The government agency also announced several incentive packages to make the property more attractive to would-be buyers.
These include provision of bonus floor area equal to a one-third increase over existing development intensity, as well as full tax waiver for conserved floor area and partial tax waiver for new floor area,
Another is an option to adjust the site boundary and alienate part of a neighbouring state land for more design flexibility, refreshing the land’s leasehold tenure to 99 years, and flexibility in the usage mix of residential, commercial, and hotel uses.
“The incentive package is unique to Golden Mile Complex, as its conservation is the first of its kind, another pioneering endeavour,” said Minister for National Development Desmond Lee when the property was gazetted as a conserved building.
“Taken together, this is a well-balanced package which will incentivise developers to seize this once-in-a-lifetime opportunity to leverage on an existing architectural icon and take it to greater heights,” commented Swee Shou Fern, Executive Director of investment advisory at Edmund Tie.
Built in 1973, the Golden Mile Complex was one of Singapore’s 1st large scale mixed-use developments that integrated residential, commercial, and recreational uses in a single structure.
Notably, the reserve price of the Golden Mile Complex is similar to that in its prior en bloc sale attempt. Depending on the mix of uses, the indicative land rate will translate to S$1,350 psf per plot ratio, including differential and lease upgrading premiums.
Since the end of the last en bloc sale attempt, office units within the property changed hands for S$786 psf to S$1,858 psf, based on URA data.
Furthermore, there is no need to pay Additional Buyer’s Stamp Duty (ABSD) for the purchase of the mixed-use property, and foreigners are permitted to acquire it.
The tender for Golden Mile Complex will close on 28 February 2022 at 3:00pm.