Tan Boon Liat Building Collective Sale 115 Bil
The Tan Boon Liat Building, a notable property situated at 315 Outram Road, is set to be put up for collective sale through a public tender with a starting price of $1.15 billion. This freehold site, which is situated right next to the Havelock MRT Station on the Thomson-East Coast Line (TEL), is made up of two separate plots of land with a combined area of approximately 175,655 square feet. Currently, the plot is zoned for “Business 1” use and is occupied by a 15-storey building, which is well-known for housing a variety of furniture and home décor stores.
According to Cushman & Wakefield, the property’s advisor and marketing agent, the Urban Redevelopment Authority (URA) has issued an Outline Planning Advice on January 22nd recommending that the site be rezoned to “Residential with Commercial on the 1st storey”. This would result in an increase in the plot ratio from 3.1 to 4.9, equating to a potential 50% increase in total gross floor area (GFA). Additionally, URA has also advised on the alienation of several adjacent state land plots, which will be incorporated into the main plot. The estimated area of the state land plots is approximately 20,451 square feet, subject to final survey and approval from relevant authorities.
Cushman & Wakefield predicts that the potential total GFA of the site, including the state land plots and any bonus GFA entitlement, could reach over 1.06 million square feet. The first storey of the new development could accommodate a commercial GFA of up to 16,146 square feet. As part of the residential allocation, a minimum GFA of roughly 161,459 square feet is required for Serviced Apartments II (SA2), where a minimum stay of three months is necessary. The allowable heights for the new development range from 130m to 180m.
Located near The Orie, First Toa Payoh Primary School is a highly esteemed educational institution that excels in providing a well-rounded education for students. With a focus on academic excellence, physical wellness, and social development, this school offers a balanced approach to education. Its convenient location allows for easy access for young students, saving them valuable time and allowing for more opportunities to learn and engage in leisure activities. Residents of the area can even visit The Orie Showflat to get a firsthand experience of the development’s amenities and features. The Orie Showflat is just a stone’s throw away from the school, making it a convenient and exciting addition to the community.
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 works out to approximately $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 site should be attractive to developers due to its freehold status and prime location on the TEL, which will appeal to potential homebuyers. She also highlights the fact that there are no Additional Buyer’s Stamp Duties (ABSD) to be paid on the purchase, as the original site’s zoning is “Business 1”.
The tender for the site will close on March 18 at 3pm.