Shenton House relaunched for third public tender
Corner commercial site in Singapore’s CBD with potential for 25% bonus GFA
SINGAPORE, 20 October 2023 – JLL, as sole marketing agent, today announced it is relaunching Shenton House for sale by public tender for the third time in this collective sale exercise.
The collective sale committee (CSC) and owners remain confident that the site’s exceptional attributes position the Shenton House, located in Singapore’s central business district (CBD) on Shenton Way, as an attractive asset for potential investors.
While the current reserve price is at S$590 million ($430 million), owners have commenced signing a Supplemental Joint Agreement (SJA) to lower the reserve price to S$538 million ($392 million), which reflects a unit land rate of approximately $1,885 per square foot per plot ratio (psf/pr) at the Gross Plot Ratio (GPR) of 14.0, inclusive of an estimated land betterment charge and a lease top-up premium to a fresh 99-year term, assuming a proposed redevelopment into a 60% commercial and 40% residential mixed use project under the CBD Incentive Scheme (CBDIS) with 25% uplift in GPR granted.
There has been strong support for the SJA, with 70% owners’ support now obtained. The lower proposed reserve price would require at least 80% of the owners’ support (by strata floor area and by share value) to take effect. The CSC is confident of obtaining the requisite support by the close of tender.
Prominently fronting Shenton Way with triple frontages, Shenton House is zoned “Commercial” at a GPR of 11.2 in the Master Plan 2019. No Additional Buyer’s Stamp Duty will be payable for the purchase of a commercial site.
Under the CBDIS, the site is eligible for a 25% bonus Gross Floor Area (“GFA”) and can be redeveloped into a mixed-use commercial with residential development or a hotel of GPR 14.0. The CBDIS is set to expire 26 November 2024, five years from the date of gazette of the Master Plan 2019.
“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 Mr Tan Hong Boon, Executive Director at JLL Capital Markets, Singapore.
“Given the site’s stellar location and seamless connection to Shenton Way MRT, coupled with the added potential to enjoy additional GFA under the CBDIS, we are confident that developers will continue to show interest in the site,” Mr Tan added.
The tender for Shenton House closes on Wednesday, 1 November 2023 at 3.00 p.m.
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.9 billion and operations in over 80 countries around the world, our more than 105,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.