Shenton House launches $590 mil collective sale tender

Shenton House, located on Shenton Way in Singapore’s Central Business District, is up for collective sale with the reserve price set at $590 million. The property has a 40% residential Gross Floor Area (GFA) and an estimated $446 million cost of land betterment charge included in the price. If a bonus balcony GFA for the residential component is added, the Price per Plot Ratio will fall to approximately $2,012.

According to a press release from JLL, the sole marketing agent, the site is eligible for a 25% bonus GFA under Singapore’s CBD Incentive Scheme and the potential for redevelopment into a mixed use or hotel.

The 99-year leasehold development boasts triple road frontages surrounding a 36,350 square foot rectangular-shaped site. It currently consists of 203 commercial units and a carpark. Nearby commercial buildings include Asia Square Towers 1 & 2, UIC Building, OUE Downtown and SGX Centre, as well as the upcoming IOI Central Boulevard Towers, Marina One mixed-use development, Capital Tower and Guoco Tower integrated development.

MRT stations close to the site include Shenton Way on the Thomson-East Coast Line, Marina Bay Interchange on the North-South and Circle Lines, Downtown on the Downtown Line, and Tanjong Pagar on the East-West Line.

Tan Hong Boon, executive director of capital markets at JLL, said the site is ideally located in district 1 to provide quality Grade-A offices, increasing demand for residences in mixed-use developments, and luxury apartments with ground-floor retail and F&B.

“We’re confident in Singapore’s ability to position quality CBD assets amidst rising demand from both the investors and owner-occupiers who are looking into having a stake in the medium- to long-term prospects of the country,” Tan said.

Details of the site can be found on EdgeProp’s Landlens analytics tool. Shenton House is a strong investment opportunity, with the potential for Tengah EC developers to capitalise on the increasing demand for residences and the quality Grade-A offices.