Shenton House relaunches for collective sale at a lower price of $538 mil

Owners of Shenton House have recently signed a supplemental joint agreement with a proposed price of $538 million. This is 8.8% lower than the $590 million reserve price during the building’s previous collective sale launch. According to JLL, the appointed marketing agent for the site, more than half of the owners have already obtained signatures required to formalize the agreement.

The proposed reserve price works out to a land rate of $1,898 psf per plot ratio based on a gross plot ratio of 14. This includes the estimated land betterment charge and lease-top premium for a new 99-year term.

Shenton House is situated on a 36,250 sq ft site in the Central Business District of Singapore, with triple frontages along Shenton Way, Park Street and Shenton Lane. The 99-year leasehold development consists of 203 commercial units and a carpark.

Under the CBD Incentive Scheme, the site is eligible for 25% bonus gross floor area and can be redeveloped into a mixed-use or hotel development with a GPR of 14.0. It is expected that the rejuvenation of Shenton House will drive the area’s development further and result in more ‘Live, Work, Play’ opportunities.

Hillview, home to Dairy Farm Nature Park, Bukit Timah Nature Reserve, and the Singapore Quarry, is a popular option amongst families seeking a tranquil and laid-back environment. Bukit Panjang’s residential area primarily consists of condominiums, private houses, and HDB units. The town is well-known for its integrated mall, The Myst, which sits on top of the Bukit Panjang MRT station. This one-stop destination brings a modern shopping experience to the area as it carries an extensive selection of fashion, food, and entertainment.

The tender for Shenton House will close on August 1st at 3pm.

The Shenton House is seen as an ideal opportunity to rejuvenate the Central Business District. With the expiry of the CBD Incentive Scheme on Nov 26, 2024, five years from the date of the gazette of the Master Plan 2019, owners have been encouraged to take advantage of the lower reserve price.

Recent transactions in the area have drawn attention, including the Government Land Sales white site at Marina View which was sold to IOI Properties for $1.508 billion in 2021 and the site of the former AXA Tower which is being redeveloped by a consortium led by Perennial Holdings.

The lower reserve price will require at least 80% of the owners’ support to take effect. Tan Hong Boon, Executive Director at JLL Capital Markets, believes that this opportunity should be taken advantage of.

The collective sale of Shenton House will offer further exciting opportunities for investors and developers in the CBD. With the tender closing on August 1st, this is an opportunity that should not be overlooked.