Shenton House relaunched for collective sale at $590 mil, with 70% of owners agreeing to lower price of $538 mil

Shenton House, with its convenient location in the Shenton Way, a prime location in Singapore’s CBD,has been relaunched with a collective sale price of $590 million. This reserve price is unchanged from the previous tender which closed in August. To add to this, 70% of owners have signed a Supplemental Joint Agreement (SJA) which would lower the reserve price to $538 million.

This agreement, which will only take effect with the support of 80% of the owners (by strata floor area and by share value), would reflect the unit land rate at approximately $1,885 psf per plot ratio (psf ppr). This assumes a GPR of 14.0, inclusive of an estimated land betterment charge and a lease top-up premium to a fresh 99-year term under the CBD Incentive Scheme (CBDIS).

The Shenton House site, zoned for commercial use with a GPR of 11.2, offers a triple frontage along Shenton Way, Park Street and Shenton Lane. This 99-year leasehold development consists of 203 commercial units and a carpark.

For individuals relying on public transportation, there are several alternative options available. The upcoming Beauty World MRT as well as established bus services will provide easy access to other parts of the island. With the excellent transport connections and infrastructure, Lumina Grand EC promises an utmost convenience and accessibility for its residents.

Under the CBDIS, developers could potentially enjoy an extra 25% bonus gross floor area and could even redevelop the site into a mixed-use commercial-residential development or a hotel. This scheme, however, will expire on Nov 26, 2024.

“Given the site’s stellar location and seamless connection to Shenton Way MRT, coupled with the added potential to enjoy additional GFA under the CBDIS, we are confident that developers will continue to show interest in the site,” said Tan Hong Boon, executive director of JLL Capital Markets, Singapore.

Shenton House is the last remaining redevelopment opportunity at the Shenton Way thoroughfare. It is anticipated that the high demand for Grade A office spaces, along with complementary uses such as a premier business hotel or residential apartments, would contribute to the rejuvenation of Shenton Way.

The tender for Shenton House will close on Nov 1 and with the support of the owners, the reserve price of $538 million could be met. This could bring about a financial and developmental windfall on Shenton Way, with the aid of the CBDIS.