Shenton House relaunched for collective sale with plans to cut reserve price to $538m
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Shenton House, a 99-year leasehold development in Shenton Way, sits on a land plot spanning 36,250 sq ft zoned for commercial use.
PHOTO: JLL
Samuel Oh
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SINGAPORE – The owners of Shenton House are relaunching the commercial property for collective sale for the third time at an unchanged guide price of $590 million.
However, plans are under way to lower the reserve price by 8.8 per cent to $538 million.
In a statement on Monday, sole marketing agent JLL said more than 50 per cent of the owners have signed the supplemental joint agreement to give their consent for the lower reserve price.
A minimum support level of 80 per cent from the owners is required for the lower reserve price to be accepted.
The previous tender for the property closed in April 2023 with no bids, and owners entered into private treaty negotiations. Mr Tan Hong Boon, executive director of capital markets at JLL, said at the time that interested buyers included both local and foreign developers.
If the reserve price is lowered to $538 million, the land rate will be $1,898 per sq ft per plot ratio (psf ppr) at a gross plot ratio (GPR) of 14.0. This is inclusive of a land betterment charge and a lease top-up premium to a fresh 99-year lease. At $590 million, the land rate stands at $2,035 psf ppr.
Previously, the prime commercial property went up for sale en bloc in March 2012 with an indicative price of $530 million.
Shenton House, a 99-year leasehold development in Shenton Way, sits on a land plot spanning 36,250 sq ft zoned for commercial use. It has a plot ratio of 11.2 under the Urban Redevelopment Authority’s Master Plan 2019.
The site is eligible for a 25 per cent bonus gross floor area under the Central Business District Incentive Scheme – until its expiry on Nov 26, 2024 – where it can be redeveloped into a mixed-use or hotel development with a higher GPR of 14.0.
The Shenton House site is located outside Shenton Way MRT station and is within walking distance to Downtown, Tanjong Pagar and Marina Bay MRT stations. It is also near expressways such as the Ayer Rajah Expressway and Marina Coastal Expressway.
The property’s prime location in Shenton Way is ideal for Grade A offices that appeal to large corporations, with another redevelopment option being a hotel development, said JLL.
The tender for Shenton House closes on Aug 1 at 3pm. THE BUSINESS TIMES
