The iconic Tan Boon Liat Building, located at 315 Outram Road, is currently on the market for collective sale with a reserve price of $1.15 billion. The industrial property, situated next to Havelock MRT Station on the upcoming Thomson-East Coast Line (TEL), occupies two separate land plots that are zoned for “Business 1” use, covering a total area of approximately 175,655 sq ft.
The building, which spans 15 storeys, is well-known for housing a variety of furniture and home décor stores.
According to property advisor and marketing agent Cushman & Wakefield, 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” and have its plot ratio increased from 3.1 to 4.9. This would result in a 50% increase in the maximum gross floor area (GFA) allowed for development, as stated by Cushman & Wakefield.
The site also has potential for further development, as URA has advised on the integration of a few smaller state land plots into the main plot. These plots, estimated to cover about 20,451 sq ft, will be subject to relevant authorities’ approval.
Cushman & Wakefield estimates that the total potential GFA for the site, including the state land plots and possible bonus GFA, could exceed 1.06 million sq ft. The commercial component, located on the first storey, could cover up to 16,146 sq ft of GFA. As part of the residential allocation, a minimum of 161,459 sq ft must be reserved for Serviced Apartments II (SA2) which require a minimum stay of three months. The proposed development can reach heights of 130m to 180m.
Based on the reserve price, including land betterment charges for rezoning, the estimated premium for the state land plots, and the 10% bonus GFA applicable to the residential portion, the land rate is approximately $1,888 psf per plot ratio.
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Recent 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 appealing to developers due to its freehold tenure and the location along the TEL, which is a desirable factor for potential homebuyers.
She also mentioned that the biggest advantage of this site is the absence of Additional Buyer’s Stamp Duty (ABSD) for the potential buyer, since the original zoning of the site is “Business 1”.
The tender for this site 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