Tan Boon Liat Building Collective Sale 115 Bil
The Tan Boon Liat Building, a well-known industrial property located at 315 Outram Road, has recently been put up for collective sale through a public tender. The reserve price for the building is set at $1.15 billion and has garnered much attention from developers due to its prime location and potential for redevelopment.
The freehold site occupies two separate land plots that are zoned for “Business 1” use, with a combined area of 175,655 sq ft. It is situated right next to the upcoming Havelock MRT Station on the Thomson-East Coast Line (TEL) which makes it highly accessible and convenient for commuters.
Currently, the building stands at 15 storeys high and is famous for being home to several furniture and home decor stores.
According to the property’s advisor and marketing agent, Cushman & Wakefield, the Urban Redevelopment Authority (URA) has issued an Outline Planning Advice on January 22nd recommending the rezoning of the site to “Residential with Commercial on the 1st storey”. This will increase the plot ratio from 3.1 to 4.9, resulting in a 50% increase in the total allowable gross floor area (GFA).
This advice also includes the alienation of several remnant state land plots which will be amalgamated into the main plot. The estimated size of these state land plots is about 20,451 sq ft, subject to final survey and approval by relevant authorities.
Cushman & Wakefield has also estimated that the potential GFA for the site, 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 16,146 sq ft.
Moreover, as part of the residential allocation, a minimum GFA of 161,459 sq ft must be set aside for Serviced Apartments II (SA2), where a minimum stay of three months is required. The maximum allowable heights for the new development range from 130m to 180m.
Based on the reserve price, which includes land betterment charges on rezoning, the estimated premium for 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.
Recent transactions within the industrial sector at Tan Boon Liat Building (Source: EdgeProp Buddy)
Christina Sim, senior director of capital markets at Cushman & Wakefield, believes that the site will prove to be an attractive investment for developers due to its freehold tenure and strategic location along the TEL. The TEL is expected to be a major draw for homebuyers.
Sim added, “The biggest advantage, however, is that there will not be any Additional Buyer’s Stamp Duty (ABSD) imposed on the potential purchase as the original site is zoned as ‘Business 1’”.
The tender for the site will close on March 18 at 3pm.
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