Shenton House Put Up For S$590mil En Bloc Sale
SINGAPORE – Shenton House, a mixed-use commercial property in the city-state’s central business district (CBD) consisting of office space and retail premises, has been put up for collective sale with a reserve price of $590 million, reported The Edge on Monday noon (6 February, SGT).
Sole marketing agent Jones Lang LaSalle (JLL) revealed that the reserve price is inclusive of the approximate S$446 million land betterment charge and a top-up premium to refresh the site’s leasehold tenure to 99 years.
The reserve price works out to a land rate of S$2,035 psf per plot ratio. This takes into account the site’s gross plot ratio of 14 and commercial zoning, of which 40 percent of the gross floor area (GFA) can be utilised as residential space. If an additional 7 percent bonus balcony GFA for the residential component is included, the land rate translates to about S$2,012 psf ppr.
Under the URA’s CBD Incentive Scheme, a redeveloped project on the site qualifies for a 25 percent bonus GFA with the same gross plot ratio, provided the existing building is redeveloped into a hotel or a mixed-use development.
“The site is ideally positioned in the prime District 1, a well-established location for Grade-A offices that appeals to large corporations,” commented JLL’s Executive Director for capital markets Tan Hong Boon.
“Developers can 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.”
Sited on a rectangular land plot measuring 36,350 sq ft, Shenton House consists of a 27-storey building that houses office space and retail units. Overall, it has 203 commercial units and a carpark. The project also enjoys triple road frontages on Park Street, Shenton Land, and Shenton Way.
Commercial properties in the immediate vicinity include the SGX Centre, the UIC Building, and OUE Downtown, as well as Asia Square Towers 1 & 2. Marina One, Capital Tower, and Guoco Tower are also close by, likewise for the soon-to-be completed IOI Central Boulevard Towers.
Nearby MRT stations include Downtown, Shenton Way, Tanjong Pagar, and the Marina Bay Interchange.
“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,” Tan added.