Shenton House To Slash Reserve Price For Latest En Bloc Attempt
SINGAPORE – Shenton House, a 25-storey office building with retail units on its podium level, is being relaunched for collective sale via a tender for the 3rd time with an unchanged guide price of S$590 million, reported The Business Times on Monday afternoon (26 June, SGT).
However, the unit owners are looking to reduce the reserve price by 9.5 percent to S$538 million. To do so, they need the approval of at least 80 percent of the unit owners.
Marketing agent Jones Lang LaSalle (JLL) announced on Monday that over 50 percent of the unit owners have already inked the supplemental agreement, which signifies their consent to reduce the reserve price.
Notably, the prior en bloc sale tender for Shenton House closed in April 2023. While no bids were received, the strata unit owners eventually entered into private treaty deals. Although there were interested buyers in the form of domestic and foreign property developers, no transaction materialised.
If the commercial property’s reserve price is slashed to S$538 million, the land rate will work out to about S$1,898 psf per plot ratio with the gross plot ratio (GPR) of 14.0. The rate includes a land betterment charge and a lease top-up premium to renew the site’s leasehold tenure to 99 years. At S$590 million, the land rate will translate to about S$2,035 psf per plot ratio.
Previously, Shenton House went up for collective sale in March 2012 with a guide price of S$530 million.
Located at Shenton Way, the mixed-use commercial property stands on a site measuring 36,250 sq ft. The land plot has a plot ratio of 11.2 under the 2019 Master Plan.
Interestingly, the site qualifies for a 25 percent bonus gross floor area (GFA) under the Urban Redevelopment Authority’s (URA) CBD Incentive Scheme, which allows the site to be redeveloped into a mixed-use project or a hotel development with a higher GPR of 14.0. However, the bonus GFA will expire on 26 November 2024 if it’s not taken up.
The collective sale tender for Shenton House will close at 3pm on 1 August 2023.