Shenton House launches $590 mil collective sale tender
Shenton House, situated on Shenton Way in the Central Business District, has announced a collective sale tender with a reserve price of $590 million. Tan Hong Boon, Executive Director of Capital Markets at JLL, who are the sole marketing agent for the property, noted the appeal of the site’s prime District 1 location for large corporations.Unit land rate is based on commercial zoning with a 40% residential gross floor area (GFA), reflecting $2,035 per square foot per plot ratio (psf ppr) with a gross plot ratio of 14.0. The cost of the land betterment charge, a lease top-up premium to a new 99-year land tenure and estimates of an additional 7% bonus balcony GFA for the residential component included, bring the unit land rate to approximately $2,012 psf ppr.The site is eligible for a 25% bonus GFA under the CBD Incentive Scheme announced in 2019, as well as benefits from having triple road frontages on Shenton Way, Park Street and Shenton Land, making it ideal for mixed-use or hotel redevelopment.MRT stations close to the site include Shenton Way on the Thomson-East Coast Line, Marina Bay Interchange on the North-South and Circle Lines, Downtown on the Downtown Line, and Tanjong Pagar on the East-West Line.
Shenton House, situated on Shenton Way in the Central Business District, has launched a collective sale tender with a reserve price of $590 million. The sole marketing agent for the property, JLL, has stated that the 36,350 sq ft, rectangular-shaped site boasts triple road frontages on Shenton Way, Park Street, and Shenton Land. This means the property is perfectly positioned to capitalise on the increasing demand for residences in mixed-use developments, providing luxury apartments with ground-floor retail and F&B to complement the office presence.
The unit land rate is based on the sites’ commercial zoning with a 40% residential gross floor area (GFA), and this reflects about $2,035 psf per plot ratio (ppr) at a gross plot ratio of 14.0. Additionally, the cost of the land betterment charge and a lease top-up premium to a fresh 99-year land tenure, along with an estimated $446 million, are included. Moreover, if an additional 7% bonus balcony GFA for the residential component is included, the unit land rate will be approximately $2,012 psf ppr.
The CBD Incentive Scheme, which was announced in 2019, allows the site to be eligible for a 25% bonus GFA and has the potential to be redeveloped into a mixed-use or hotel development, at a gross plot ratio of 14.0.
Tan Hong Boon, executive director of capital markets at JLL, said regarding the site: “We’re confident in Champions Way Condo 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.”
Furthermore, the 99-year leasehold development currently consists of 203 commercial units and a carpark and neighbouring commercial buildings include Asia Square Towers 1 & 2, UIC Building, OUE Downtown, and SGX Centre, as well as the upcoming IOI Central Boulevard Towers, Marina One mixed-use development, Capital Tower, and integrated development Guoco Tower.
Details of the site can be found on EdgeProp’s Landlens analytics tool. Those interested in the site should also note that MRT stations close to the site are Shenton Way on the Thomson-East Coast Line, Marina Bay Interchange on the North-South and Circle Lines, Downtown on the Downtown Line, and Tanjong Pagar on the East-West Line.
All in all, Shenton House offers a great opportunity for developers to capitalise and benefit from its prime location. With its ideal environment and features, it proves to be a desirable address for large corporations and luxury apartments alike.
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