Tan Boon Liat Building Collective Sale 115 Bil
Tan Boon Liat Building, a well-known industrial property located at 315 Outram Road, has been put up for collective sale by public tender with a reserve price of $1.15 billion. The building, which sits on a freehold site adjacent to the upcoming Havelock MRT Station on the Thomson-East Coast Line (TEL), is spread across two separate land plots with a combined site area of approximately 175,655 square feet.
Currently, the site is occupied by a 15-storey building that houses several furniture and home decor stores, making it a popular destination for shoppers and those in the interior design industry.
Investment advisory firm and marketing agent for the property, Cushman & Wakefield, stated that on January 22, Urban Redevelopment Authority (URA) issued an Outline Planning Advice. This outlines the potential for the site to be rezoned from its current “Business 1” use, to “Residential with Commercial at 1st storey” with a plot ratio of 4.9 – up from its current 3.1. This means that the total allowable gross floor area (GFA) for the property will increase by 50%.
In addition, URA has advised on the amalgamation of a few remnant state land plots, which will be incorporated into the main plot. These state land plots are estimated to be around 20,451 square feet, subject to the relevant authorities’ final survey and approval.
With the inclusion of these state land plots and any bonus GFA entitlement, Cushman & Wakefield estimates that the site’s potential GFA is over 1.06 million square feet. The commercial GFA on the first storey is around 16,146 square feet. The residential allocation also includes a minimum GFA of 161,459 square feet to be set aside for Serviced Apartments II (SA2), where a minimum three-month stay is required. The allowable heights of the new development range from 130m to 180m.
Taking into account the reserve price, including land betterment charges on rezoning, the estimated premium on the remnant state land, and the 10% bonus GFA for the residential portion, the estimated land rate is around $1,888 per square foot per plot ratio.
Recent industrial sales transactions at Tan Boon Liat Building (Source: EdgeProp Buddy)Christina Sim, senior director of capital markets at Cushman & Wakefield, believes that this site will be an attractive option for developers due to its freehold tenure and prime location along the TEL, which will be a draw for potential homebuyers. She also points out that there will be no Additional Buyer’s Stamp Duty (ABSD) imposed on the purchase of this site, as it currently has a “Business 1” zoning.
The tender for this site will close on March 18 at 3pm.
Compare condo and executive condo (EC) property prices, check landed property prices | Tan Boon Liat Building goes en bloc with $1.15 bil reserve price (Source: EdgeProp)
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