Tan Boon Liat Building, a commercial property situated at 315 Outram Road, is currently on the market for collective sale through a public tender at a reserve price of $1.15 billion. The land, which is freehold and covers a total of approximately 175,655 square feet, is made up of two separate plots of land that have been zoned for “Business 1” use.
Located next to the Havelock MRT Station along the Thomson-East Coast Line (TEL), the property is currently occupied by a 15-storey building that is well-known for its many furniture and home decor stores. According to Cushman & Wakefield, the appointed advisor and marketing agent for the property, the Urban Redevelopment Authority (URA) has recently issued an Outline Planning Advice that recommends rezoning the site to “Residential with Commercial at the 1st storey” with a plot ratio of 4.9, an increase from the current 3.1 ratio. This would result in a 50% increase in the total allowed gross floor area (GFA).
In addition, the URA has also advised on the acquisition of a few remnant state land plots that will be incorporated into the main plot. These state land plots are estimated to measure around 20,451 square feet, subject to the final survey and approval from the relevant authorities.
Cushman & Wakefield has estimated that the potential GFA of the site, including the state land plots and any bonus GFA entitlement, is over 1.06 million square feet. The commercial space on the 1st storey can have a maximum GFA of about 16,146 square feet.
Under the residential allocation, a minimum GFA of approximately 161,459 square feet will be set aside for Serviced Apartments II (SA2), which are required to have a minimum stay of three months. The allowable height for the new development ranges from 130 meters to 180 meters.
Based on the reserve price, which includes land betterment charges for rezoning, estimated premium payable for the remnant state land plots, and the 10% bonus GFA for the residential portion, the land rate is estimated to be around $1,888 per square foot per plot ratio.
Recent industrial sales transactions at Tan Boon Liat Building (Source: EdgeProp Buddy)
Christina Sim, senior director of capital markets at Cushman & Wakefield, believes that the property will attract developers due to its freehold tenure and its location next to the TEL, which will be a draw for homebuyers. She also notes that the lack of Additional Buyer’s Stamp Duty (ABSD) will be a major advantage for potential buyers, as the original site is currently zoned as “Business 1”.
The tender for the site will close on March 18 at 3pm. Ask BuddyCompare price trends for new condo sales versus new EC salesMost unprofitable landed transactions in the past yearCondo projects with the most unprofitable transactionsPast condo sale transactionsUpcoming new launch projectsCompare price trends for new condo sales versus new EC salesMost unprofitable landed transactions in the past yearCondo projects with the most unprofitable transactionsPast condo sale transactionsUpcoming new launch projects