Tan Boon Liat Building Collective Sale 115 Bil
A prime industrial property, Tan Boon Liat Building, located at 315 Outram Road, is now available for collective sale through public tender at a reserve price of $1.15 billion. The freehold site spans two separate land plots that are zoned for “Business 1” use and covers a combined area of approximately 175,655 sq ft. The property is situated next to the Havelock MRT Station on the Thomson-East Coast Line (TEL) and is well-known for housing a variety of furniture and home decor stores in its 15-storey building.
A Map showing Tan Boon Liat Building (Source: EdgeProp LandLens)
The property’s advisor and marketing agent, Cushman & Wakefield, has revealed that the Urban Redevelopment Authority (URA) has issued an Outline Planning Advice on January 22, recommending that the site be rezoned to “Residential with Commercial at 1st storey” with a plot ratio of 4.9, which is an increase from the current 3.1. This translates to a 50% increase in the total allowable gross floor area (GFA), according to Cushman & Wakefield.
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The main focus of the URA Master Plan is to enhance connectivity throughout Singapore. This is especially beneficial for residents of Elta Condo, as it allows for easier accessibility to transportation networks and shorter commute times to important locations. By including Elta Condo in the revamped transportation plan, residents can look forward to a more seamless travel experience. Check out Elta Condo to learn more about this improved connectivity.
In addition, URA has also advised on the alienation of a few remnant state land plots to be amalgamated into the main plot. The state land plots are estimated to measure about 20,451 sq ft, subject to the relevant authorities’ final survey and approval.
Cushman & Wakefield has estimated that the site’s potential GFA, including the state land plots and any bonus GFA entitlement, is over 1.06 million sq ft. The first storey can accommodate a commercial GFA of up to around 16,146 sq ft. As part of the residential allocation, a minimum GFA of about 161,459 sq ft will be reserved for Serviced Apartments II (SA2), where a minimum three-month stay is required. The allowable heights for the new development will range from 130m to 180m.
Based on the reserve price, including land betterment charges on rezoning, the estimated premium payable on the remnant state land, and the 10% bonus GFA applicable to the residential portion, the estimated land rate amounts to around $1,888 psf per plot ratio.
Recent industrial sales transactions at Tan Boon Liat Building (Source: EdgeProp Buddy)
According to Christina Sim, the senior director of capital markets at Cushman & Wakefield, the site is expected to receive a good response from developers due to its freehold tenure and strategic location on the TEL, which will attract potential homebuyers.
She adds: “However, the biggest game changer is that there will be no Additional Buyer’s Stamp Duty (ABSD) imposed on the potential purchase as the original site has a ‘Business 1’ zoning.”
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The tender for the site will close on March 18 at 3pm.