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Shenton House relaunched for en bloc sale with plans to cut reserve price

THE owners of Shenton House are relaunching the commercial property for collective sale via tender for the third time at an unchanged guide price of S$590 million.

However, plans are underway to lower the reserve price by 8.8 per cent to S$538 million.

In a press statement on Monday (Jun 26), sole marketing agent JLL said more than 50 per cent of the owners have signed on the supplemental joint agreement to give their consent for the lower reserve price. 

A minimum support level of 80 per cent from the owners is required for the lower reserve price to be accepted. 

The previous tender for the property closed in April 2023 with no bids and owners entered into private treaty negotiations. Tan Hong Boon, executive director of capital markets at JLL, said at the time that interested buyers included both local and foreign developers.

If the reserve price is lowered to S$538 million, the land rate will be S$1,898 per square foot per plot ratio (psf ppr) at the gross plot ratio (GPR) of 14.0. This is inclusive of a land betterment charge and a lease top-up premium to a fresh 99-year lease. At S$590 million, the land rate stands at S$2,035 psf ppr. 

By Samuel Oh, Business Times

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