The Tan Boon Liat Building, a well-known industrial property situated at 315 Outram Road, is being put up for collective sale through a public tender process at a reserve price of $1.15 billion. The freehold site, which is conveniently located next to the upcoming Havelock MRT Station on the new Thomson-East Coast Line (TEL), comprises two separate land plots that are designated for “Business 1” use and have a combined site area of approximately 175,655 square feet.
The iconic 15-storey building is currently home to several furniture and home décor stores, making it a popular destination for shoppers and businesses alike. The property’s advisor and marketing agent, Cushman & Wakefield, has revealed that the Urban Redevelopment Authority (URA) has issued an Outline Planning Advice on January 22, recommending that the site be rezoned to “Residential with Commercial at 1st storey” with a plot ratio of 4.9. This represents a significant increase from the current plot ratio of 3.1 and would allow for a 50% increase in the total gross floor area (GFA) of the site, according to Cushman & Wakefield.
The URA has also suggested that a few remnant state land plots be amalgamated into the main plot, subject to the relevant authorities’ approval. These land plots are estimated to measure about 20,451 square feet, and together with the bonus GFA entitlement, could potentially result in a total GFA of over 1.06 million square feet. Furthermore, the first storey will be able to accommodate a commercial GFA of up to around 16,146 square feet.
In terms of residential allocation, a minimum GFA of approximately 161,459 square feet must be reserved for Serviced Apartments II (SA2), where a minimum stay of three months is required. The allowable heights for the new development range from 130m to 180m.
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 land rate is estimated to be around $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, is confident that the site will be attractive to developers due to its freehold tenure and prime location on the TEL, which is likely to be a major draw for homebuyers. She also notes that the absence of Additional Buyer’s Stamp Duty (ABSD) will be a significant advantage for potential buyers, as the original site has a “Business 1” zoning.
The public tender for the site will close on March 18 at 3pm.