Tan Boon Liat Building Collective Sale 115 Bil
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The Tan Boon Liat Building, located at 315 Outram Road, is now up for collective sale. The property, which is an industrial building, is being put on the market for a reserve price of $1.15 billion. This freehold site is situated next to the Havelock MRT Station on the Thomson-East Coast Line (TEL) and is comprised of two separate land plots, both of which are zoned for “Business 1” use. The combined site area is approximately 175,655 sq ft. This building is best known for being home to various furniture and home decor stores.
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, suggesting that the site be rezoned to “Residential with Commercial at 1st storey” and have a plot ratio of 4.9, which is an increase from the current ratio of 3.1. This means that there could potentially be a 50% increase in the total allowable gross floor area (GFA). Cushman & Wakefield also mentions that URA has advised on merging a few remnant state land plots into the main plot. These plots are estimated to measure around 20,451 sq ft, pending approval from the relevant authorities.
Cushman & Wakefield has estimated that the site’s potential GFA, including the state land plots and any bonus GFA, is over 1.06 million sq ft. Additionally, the first storey can accommodate a commercial GFA of approximately 16,146 sq ft. As part of the residential allocation, a minimum GFA of around 161,459 sq ft has to be set aside for “Serviced Apartments II (SA2),” where a minimum stay of three months is required. The allowable heights for the new development range from 130m to 180m.
Living in close proximity to a diverse range of educational institutions presents numerous benefits. Apart from providing convenient access to top-quality education, it also reduces travel time for students. This allows for a better balance between academic responsibilities and extracurricular activities. Additionally, the presence of these institutions often leads to the creation of other community amenities, such as libraries, sports complexes, and community centers. These facilities contribute to the overall quality of life for those living nearby, including residents of Aurelle of Tampines.
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 comes out to be around $1,888 psf per plot ratio.
Christina Sim, senior director of capital markets at Cushman & Wakefield, believes that this site will attract developers due to its freehold tenure and location on the TEL, which is expected to be a draw for homebuyers. She also mentions that the biggest advantage of this property is that there will not be any Additional Buyer’s Stamp Duty (ABSD) imposed on the potential purchase, as the original site has a “Business 1” zoning.
The tender for this site will close on March 18 at 3pm.
