The Tan Boon Liat Building is currently on the market for collective sale through a public tender with a reserve price of $1.15 billion. Located at 315 Outram Road, the industrial property sits on two separate freehold land plots with a combined area of approximately 175,655 sq ft.
The site is best known for its 15-storey building which houses multiple furniture and home decor stores. It also benefits from its close proximity to the upcoming Havelock MRT Station on the Thomson-East Coast Line (TEL).
According to Cushman & Wakefield, the property’s marketing agent and advisor, the Urban Redevelopment Authority (URA) has issued an Outline Planning Advice on January 22, recommending that the zoning of the site be changed from “Business 1” to “Residential with Commercial at 1st storey”. The proposed plot ratio will also be increased from 3.1 to 4.9, resulting in a 50% increase in the total allowable gross floor area (GFA).
Cushman & Wakefield further adds that URA has also suggested the amalgamation of a few state land plots into the main plot. These land plots are estimated to measure approximately 20,451 sq ft, subject to final approval from relevant authorities.
With the inclusion of these state land plots and the potential bonus GFA, the estimated total GFA of the site will exceed 1.06 million sq ft. The first storey will have a commercial GFA of approximately 16,146 sq ft.
Under the residential allocation, a minimum GFA of 161,459 sq ft will be set aside for Serviced Apartments II (SA2), where a minimum three-month stay is required. The allowable building heights for the new development will range from 130m to 180m.
Including the land betterment charges on rezoning, the estimated premium payable on the remnant state land, and the 10% bonus GFA for the residential portion, the estimated land rate is $1,888 psf per plot ratio based on the reserve price.
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 will be attractive to developers due to its coveted freehold tenure and its location on the TEL, which will appeal to homebuyers.
She also highlights that there will not be any Additional Buyer’s Stamp Duty (ABSD) imposed on the potential purchase as the original site is zoned for “Business 1”.
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The tender for the site will close at 3pm on March 18.