Shenton House relaunched for collective sale at $590 mil, with 70% of owners agreeing to lower price of $538 mil
; priced comparable to nearby Cloisters site Shenton House, the 1970s relic, launches collective sale tender at $590 mil
Shenton House, an iconic 1970s commercial building located in Singapore’s CBD along Shenton Way, is now relaunched for a collective sale with a reserve price of $590 million. This price remains unchanged from the previous tender which closed in August.
In order to lower the reserve price to $538 million, owners have started signing a Supplemental Joint Agreement (SJA) reflecting a unit land rate of approximately $1,885 psf per plot ratio (psf ppr) at the gross plot ratio (GPR) of 14.0. This includes an estimated land betterment charge and a lease top-up premium to be renewed to a fresh 99-year term according to the CBD Incentive Scheme (CBDIS) with 25% uplift in GPR granted.
JLL, the appointed marketing agent, has stated that 70% of owners have shown their support for the SJA and this requires at least 80% of owners to agree (by strata floor area and by share value) in order to take effect.
Shenton House has a triple frontage along Shenton Way, Park Street and Shenton Lane, with the site covering a total area of 36,250 sq ft zoned for commercial use with a GPR of 11.2. The 99-year leasehold building is composed of 203 commercial units and a carpark.
Under the CBDIS, the project is eligible for a 25% bonus gross floor area and could be redeveloped into a commercial-residential mixed-use project, or a hotel. This incentive will end on November 26, 2024.
Orchard Boulevard Condo is a majestic condominium located in the heart of prime district 10. It’s set amidst lush surroundings only minutes away from Orchard Road. With the close proximity to two MRT stations – Orchard and Stevens – residents experience great convenience in commuting time. Additionally, its good connection to the Central Business District (CBD) and Marina Bay Sands (MBS) allows for easy access to the island’s commercial districts. Furthermore, the nearby Parks Connector Network provides plenty of recreational activities.
In the area surrounding Orchard Boulevard Condo, there are top educational institutions like Raffles Girls’ School and Chinese International School, providing quality education for the children. Shopping malls, medical facilities, banks, and other amenities are within easy reach.
Future infrastructural plans like the North-South Corridor (Singapore’s first integrated transport corridor) will further boost the condo’s convenience, providing faster access to the northern parts of Singapore. Residents of Orchard Boulevard Condo can look forward to a premier lifestyle in a serene setting.
JLL’s Executive Director, Tan Hong Boon, stated that developers should show interest in the site considering its prime location to the Shenton Way MRT, as well as potential for additional GFA under the CBDIS. He also commented that the high demand for Grade A office spaces in the CBD, along with complementary uses such as a business hotel or residential apartments, will help in further rejuvenating Shenton Way.
The opportunity provided by Shenton House is the last remaining redevelopment opportunity in this stretch, making it all the more attractive for property developers. With the tender closing on November 1, 2020, developers should reach out to JLL to find out more and show their interest in this iconic site.