Tan Boon Liat Building, located at 315 Outram Road, is currently up for collective sale. The industrial property is being marketed by Cushman & Wakefield at a reserve price of $1.15 billion. The site, which spans about 175,655 sq ft, is freehold and is in close proximity to the Havelock MRT Station on the upcoming Thomson-East Coast Line (TEL).
The building, which is currently occupied by various furniture and home decor stores, is 15 storeys high and sits on two separate land plots that are zoned for “Business 1” use. However, according to Cushman & Wakefield, the property’s advisor and marketing agent, the Urban Redevelopment Authority (URA) has issued an Outline Planning Advice on Jan 22 recommending that the site be rezoned to “Residential with Commercial at 1st storey” with a plot ratio of 4.9, up from the current 3.1. This would lead to a 50% increase in the total allowable gross floor area (GFA), adding up to over 1.06 million sq ft.
Furthermore, URA has also advised on the inclusion of a few remnant state land plots to be amalgamated into the main plot. These state land plots, estimated to measure about 20,451 sq ft, will increase the potential GFA of the site. With these changes, the site’s potential GFA, including bonus GFA entitlement, is projected to be over 1.06 million sq ft. Of this, the first storey can hold a commercial GFA of up to approximately 16,146 sq ft.
As part of the residential allocation, a minimum GFA of about 161,459 sq ft will be set aside for Serviced Apartments II (SA2), where a minimum three-month stay is required. The new development will have varying allowable heights ranging from 130m to 180m.
Based on the reserve price, which includes 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 is approximately $1,888 psf per plot ratio.
Christina Sim, senior director of capital markets at Cushman & Wakefield, believes the site will be highly sought after by developers due to its freehold tenure and proximity to the upcoming TEL, which will attract homebuyers. She adds that “the biggest game changer” is that there will be no Additional Buyer’s Stamp Duty (ABSD) imposed on the purchase, as the original site falls under the “Business 1” zoning.
The tender for the site will close on March 18 at 3pm. With the potential of the site to be rezoned and its attractive location, it is likely to attract strong interest from developers.
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