Tan Boon Liat Building, a renowned industrial property which sits at 315 Outram Road, has recently been put up for collective sale. The reserve price for this freehold site is set at a whopping $1.15 billion. The property stands next to the upcoming Havelock MRT Station on the Thomson-East Coast Line (TEL) and is spread across two different land plots. Both of these plots are currently zoned for “Business 1” use and together, cover an area of approximately 175,655 sq ft.The most noticeable feature of Tan Boon Liat Building is its 15-storey structure that houses several furniture and home decor stores, making it a well-known location. The property’s advisor and marketing agent, Cushman & Wakefield, revealed that the Urban Redevelopment Authority (URA) has issued an Outline Planning Advice on Jan 22 recommending the site to be rezoned to “Residential with Commercial at 1st storey” with a plot ratio of 4.9, an increase from the present 3.1 ratio. The increase in plot ratio would lead to a 50% rise in the total permissible gross floor area (GFA), as stated by Cushman & Wakefield. Read also: Roxy Square relaunched for collective sale; owners eyeing $1.115 bil price tagAs per the advice of URA, few state land plots adjoining the main plot may also be sold, after merging them together. These plots are estimated to be around 20,451 sq ft, once they have been surveyed and approved by the relevant authorities. According to Cushman & Wakefield, the total potential GFA of the site, including these land plots and any bonus GFA entitlement, is more than 1.06 million sq ft. A commercial GFA of around 16,146 sq ft can be built on the first storey of the development.Moreover, as part of the residential allocation, a minimum GFA of about 161,459 sq ft is to be reserved for Serviced Apartments II (SA2). This area would require a minimum stay of three months, and the allowable building heights range from 130m to 180m. The estimated land rate based on the reserve price, along with land betterment charges on rezoning, the premium payable on the state land plots, and 10% bonus GFA on the residential portion, amounts to approximately $1,888 psf per plot ratio. Read also: River Valley Apartments launched for collective sale at $56milChristina Sim, senior director of capital markets at Cushman & Wakefield, talks about how the location of the site on the TEL, combined with its freehold tenure, would attract developers. She further adds, “The biggest game changer, however, is the fact that there will not be any Additional Buyer’s Stamp Duty (ABSD) to be levied on the potential purchase as the original site has a ‘Business 1’ zoning.”The site is up for collective sale, and the tender for it will close on March 18 at 3pm. Ask BuddyCompare price trend of Condo new sale vs EC new saleMost unprofitable landed transactions in past 1 yearCondo projects with most unprofitable transactionsPast Condo sale transactionsUpcoming new launch projectsCompare price trend of Condo new sale vs EC new saleMost unprofitable landed transactions in past 1 yearCondo projects with most unprofitable transactionsPast Condo sale transactionsUpcoming new launch projects
