Shenton House Relaunched For En Bloc Sale With A Potentially Lower Price
SINGAPORE – Shenton House, a mixed-use commercial property in the city-state’s central business district (CBD) has been relaunched for collective sale, according to a report from The Edge last week.
While its present reserve price of S$590 million remains the same from the prior tender that closed on 1 August 2023, marketing agent Jones Lang LaSalle (JLL) revealed that 70 percent of the unit owners have signed a Supplemental Joint Agreement (SJA) to reduce the reserve price to S$538 million.
Though the lower reserve price needs the consent of at least 80 percent of the unit owners by share value and strata floor area, JLL revealed that the “collective sale committee is confident” in getting the required threshold by the tender’s close on 1 November 2023.
With an existing gross plot ratio (GPR) of 11.2, the building stands on a land plot measuring 36,250 sq ft. The commercially-zoned site enjoys triple frontages along Shenton Way, Shenton Lane, and Park Street. Currently, the development contains 203 commercial units along with a carpark.
The proposed lower reserve price of S$538 million translates to a land rate of around S$1,885 psf per plot ratio at a GPR of 14. This is inclusive of a land betterment charge and lease top-up premium to refresh the site’s tenure to 99 years, assuming Shenton House is redeveloped into a project with a 40 percent residential and 60 percent commercial components under the CBD Incentive Scheme, subject to the authorities granting a 25 percent increase in the gross floor area (GFA).
Under CBD Incentive Scheme, the site of Shenton House qualifies for a 25 percent bonus GFA. However, the scheme will expire on 26 November 2024.
“Shenton House is the last remaining redevelopment opportunity at this stretch of the prime Shenton Way thoroughfare. The high demand for brand new Grade A office spaces in the CBD, coupled with complementary uses such as a premier business hotel or residential apartments, will further contribute to the rejuvenation of Shenton Way,” commented Tan Hong Boon, Executive Director at JLL Capital Markets in Singapore.
“Given the site’s stellar location and seamless connection to Shenton Way MRT Station, coupled with the added potential to enjoy additional GFA under the CBD Incentive Scheme, we are confident that developers will continue to show interest in the site,” Tan added.