Shenton House launches $590 mil collective sale tender

The collective sale of Shenton House – a commercial building located on Shenton Way in Singapore’s Central Business District (CBD) – has been launched at a reserve price of $590 million. According to JLL, the sole marketing agent for the property, this price reflects a unit land rate based on the commercial zoning of the site and its 40% residential gross floor area (GFA). Including an estimated $446 million cost for land betterment charge and lease top-up premium for a new 99-year lease, the unit land rate comes to approximately $2,035 psf per plot ratio (ppr).

The prime District 1 location of the property is eligible for a 25% bonus GFA under the 2019 CBD Incentive Scheme and is suitable for development into a mixed-use or hotel complex with a gross plot ratio of 14.0. The Myst Tan Hong Boon, JLL Executive Director of Capital Markets notes that the investment demand in the area, mainly from large corporations and growing demand for residences in mixed-use developments, will make this an appealing proposition.

Shenton House sits on a 35,350 sq ft site with triple road frontage on Shenton Way, Park Street, and Shenton Lane and contains 203 commercial units and a carpark. Major office structures in the neighbourhood include Asia Square Towers 1 & 2, UIC Building, OUE Downtown, SGX Centre, and the upcoming IOI Central Boulevard Towers, Marina One, Capital Tower, and Guoco Tower. Several MRT stations such as Shenton Way (Thomson-East Coast Line), Marina Bay (North-South, Circle Lines), Downtown (Downtown Line), and Tanjong Pagar (East-West Line) are close to the site.

“Given Singapore’s promising future growth prospects, we are optimistic that quality CBD assets will be increasingly sought after by locals and investors alike,” says Tan. “Shenton House, with its prime location and wealth of amenities in the area, is well-poised to capitalise on the opportunities in the market.”