Shenton House, an office building located situated on Shenton Way in the CBD is being relaunched to be sold collectively with a reserve of 590 million at present and the tender is scheduled to end on August 3rd.
However, more than fifty% members have signed joint agreement that has the lower reserve price of $538 million, in under a month, according to JLL, the designated marketing agent. JLL. Lower reserve prices can only become effective when at the minimum of 80% of the owners have agreed to the price. The price of $538 million is the equivalent of an 8.8% reduction from the reserve price currently which is set at $590million.
The lower reserve amount equates to a land price of $1,898 psf/plot proportion (psf ppr) in accordance with an average Gross plot ratio (GPR) which is 14. The land price includes the estimated land improvement charge as well as lease-top rates for a 99-year lease.
Shenton House sits on a 36,250 square foot site that is zoned for commercial use and has GPR of 11.2. The site features three frontages on Shenton Way, Park Street and Shenton Lane. This 99 year leasehold property comprises of 203 residential units as well as parking.
In the CBD Incentive Scheme, the site is eligible for a 25% extra gross floor area. The site can be developed to become a hotel or mixed-use development that has GPR that is 14.0. CBD Incentive Scheme will expire on November 26, 2024, which is five years after the date of publication in the gazette in Master Plan 2019. Master Plan 2019.
“In keeping with the URA’s strategy to increase the number of “Live, Work, Play’ in the CBD along with the best Grade A offices, the revamp of Shenton House would be an ideal chance to further revitalize the CBD by integrating urban living that includes apartments and serviced apartments benefiting from the growth in infrastructure and amenities that support it within the area,” says Tan Hong Boon the executive director of JLL Capital Markets.