Shenton House relaunched for collective sale at $590 mil, with 70% of owners agreeing to lower price of $538 mil

with 25% GFA uplift under CBDISShenton House, a relic of the ’70s situated right at the heart of Singapore’s Central Business District, has been relaunched for collective sale at a reserve price of $590 million. Located on the corner of Shenton Way, Park Street, and Shenton Lane, the 36,250 sq ft site has been zoned for commercial use with a GPR of 11.2 and triple frontage. The 99-year leasehold development consists of 203 commercial units and a carpark.

Shenton House, a commercial building situated in the heart of Singapore’s Central Business District (CBD), is up for collective sale at a reserve price of $590 million. The tender to close on Nov 1 has not changed from the previous tender launched in late June which closed on Aug 1. To further entice potential developers and buyers, owners have commenced signing a Supplemental Joint Agreement (SJA) to lower the reserve price to $538 million.

Under the proposed redevelopment into a 60% commercial and 40% residential mixed-use project under the CBD Incentive Scheme (CBDIS) with 25% uplift in GPR granted, the proposed reserve price reflects a unit land rate of approximately $1,885 psf per plot ratio (psf ppr) 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.

JLL, the appointed marketing agent, has reported that support for the SJA has been obtained from 70% of owners, and is confident that the collective sale committee will be able to obtain the requisite support by the close of tender.

The site is eligible for 25% bonus gross floor area under the CBDIS and can be redeveloped into a mixed-use commercial with residential development or a hotel with a GPR of 14.0. The CBDIS expires on Nov 26, 2024; five years from the date of the gazette of the Master Plan 2019.

Tan Hong Boon, executive director at JLL Capital Markets, Singapore, reaffirms the high demand for new Grade A office spaces in the CBD which will be taken into consideration when developers show interest in the site. Further, the site’s excellent location and proximity to the Shenton Way MRT station, as well as its iconicity and landholding attributes, will also be taken into account.

Holland Drive Condo is yet another busy shopping mall that appeals to the mass audiences. From local to international brands, you will be able to find a variety of items to suit your needs. It is the perfect place for fashion connoisseurs and a great place to find gifts for your loved ones. Along with the construction of the Holland Drive Condo, it will add vibrancy and energy to the neighbourhood. The abundance of shopping, dining and entertainment options can easily be accessed on foot.

All in all, Shenton House is the last remaining redevelopment opportunity at this stretch of the prime Shenton Way thoroughfare. As such, developers are encouraged to take this chance to contribute towards the rejuvenation of Shenton Way.