Tan Boon Liat Building, a well-known industrial property situated at 315 Outram Road, is currently on the market for collective sale through public tender with a reserve price of $1.15 billion. The freehold site spans over two separate land plots and has a total area of approximately 175,655 sq ft. It is strategically located beside the upcoming Havelock MRT Station on the Thomson-East Coast Line (TEL).
The building itself is a 15-storey structure that has gained recognition for its diverse range of furniture and home decor 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 22. This advice suggests that the site be rezoned from its current “Business 1” use to “Residential with Commercial at 1st storey” with a higher plot ratio of 4.9, resulting in a 50% increase in the total allowable gross floor area (GFA).
Furthermore, the URA has also advised on the amalgamation of several remnant state land plots into the main plot. These plots, estimated to be approximately 20,451 sq ft, are subject to final surveys and approvals from relevant authorities.
With the addition of the remnant state land plots and bonus GFA entitlement, Cushman & Wakefield estimates that the site’s potential GFA is over 1.06 million sq ft. The first storey can potentially accommodate a commercial GFA of up to 16,146 sq ft.
As part of the residential allocation, a minimum GFA of 161,459 sq ft must be set aside for Serviced Apartments II (SA2), where a minimum stay of three months is required. The new development can have varying heights, ranging from 130m to 180m.
Taking into account the reserve price, land betterment charges on rezoning, estimated premium payable on the state land plots, and the 10% bonus GFA for the residential portion, the estimated land rate works out to be around $1,888 psf per plot ratio.
Christina Sim, senior director of capital markets at Cushman & Wakefield, believes that the site will attract developers due to its freehold tenure and prime location on the upcoming TEL. This will be a significant selling point for potential homebuyers.
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Sim also states that the lack of Additional Buyer’s Stamp Duty (ABSD) on the site will be a major game changer, as the original zoning of the site is “Business 1”.
The tender for the site will close on March 18 at 3pm. Interested parties can compare price trends, explore unprofitable transactions, and view past condo sale transactions and upcoming new launch projects through EdgeProp’s website and app.