Tan Boon Liat Building, a popular industrial property situated at 315 Outram Road, is now available for collective sale through public tender with a reserve price of $1.15 billion. The freehold site encompasses two separate land parcels, totaling approximately 175,655 sq ft, and is designated for “Business 1” use. It is conveniently located next to the upcoming Havelock MRT Station on the Thomson-East Coast Line (TEL).
The building, which currently stands at 15 storeys, is well-known for housing various furniture and home decor stores. According to Cushman & Wakefield, the appointed advisor and marketing agent for the property, the Urban Redevelopment Authority (URA) has issued an Outline Planning Advice on January 22, advising for the site to be rezoned to “Residential with Commercial at 1st storey”. This would result in a higher plot ratio of 4.9, as compared to its current 3.1, translating to a 50% increase in the total allowable gross floor area (GFA).
In addition, the URA has also suggested the inclusion of a few state land plots to be amalgamated into the main plot. These plots, estimated to cover an area of 20,451 sq ft, are subject to final approval from the relevant authorities. Cushman & Wakefield estimates the potential GFA of the site, including the state land plots and any bonus GFA, to be over 1.06 million sq ft. The first storey can accommodate a maximum commercial GFA of about 16,146 sq ft.
The URA has also set aside a minimum GFA of 161,459 sq ft for Serviced Apartments II (SA2), which require a minimum stay of three months. The allowable building heights for the new development range from 130m to 180m.
Taking into account the reserve price, land betterment charges on rezoning, the estimated premium for the state land plots, and the 10% bonus GFA for the residential portion, the estimated land rate works out to be approximately $1,888 psf per plot ratio.
Recent industrial sales transactions at Tan Boon Liat Building have been consistently strong (Source: EdgeProp Buddy)
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Christina Sim, senior director of capital markets at Cushman & Wakefield, believes that this site will appeal to developers due to its coveted freehold tenure and its location along the TEL, which will undoubtedly attract homebuyers. She further notes that the absence of Additional Buyer’s Stamp Duty (ABSD) will be a major draw for potential buyers, as the original site already has a “Business 1” zoning.
The tender for the property will close on March 18 at 3pm. Interested parties are advised to act quickly to seize this golden opportunity.