JLL (NYSE:JLL), as sole marketing agent, today announced the successful sale of Shenton House in a collective sale exercise to Shenton 101 Pte Ltd., a company owned by Mr. Lee Yeow Seng, CEO and major shareholder of IOI Properties Group Berhad, listed on the Bursa Malaysia Securities Berhad.

The Collective Sale Committee (CSC) of this sought-after prized asset has obtained more than 80% owners’ consent to the reserve price (RP) of S$538 million prior to the close of the tender today. The sale is subject to the expiry of the statutory five-day cooling-off period on 6 November 2023 and conditional on the CSC obtaining the approval of the sale from the Strata Titles Board or the Court.

“With over half a million sqft of gross floor area, we will develop this strategically located and very prominent site into a premier Grade A office and luxury branded service residences. This purchase demonstrates my continued confidence in Singapore’s prime office sector and residential rental market,” said Mr. Lee Yeow Seng.

Prominently fronting Shenton Way with triple frontages, the 3,377 sqm (or 36,350 sqft) Shenton House site is zoned ‘Commercial’ with a Gross Plot Ratio (GPR) of 11.2 in the 2019 Master Plan. Under the CBD Incentive Scheme (CBDIS), the site is eligible for a 25% bonus gross floor area and can be redeveloped into a mixed-use commercial with residential development or a hotel at the GPR of 14.0.

The RP of $538 million reflects a unit land rate of approximately $1,885 per square foot per plot ratio at the GPR of 14.0, inclusive of an estimated land betterment charge and a lease top-up premium to a fresh 99-year term, assuming a proposed redevelopment into a 60% commercial and 40% residential mixed-use project under the CBDIS.

“This bid recognises the attractiveness of Singapore’s office sector and residential rental market underpinned by Singapore’s exceptional fundamentals as Asia’s financial and business centre. Given the limited supply of new Grade A offices in the core of the CBD as occupiers look to locate to low carbon modern office space as well as the limited availability of luxury rental housings in the area, the Shenton House site will fill these gaps timely and further contribute to the rejuvenation of Shenton Way,” commented Mr Tan Hong Boon, Executive Director at JLL Capital Markets, “Shenton House is the last remaining redevelopment opportunity at this stretch of the prime Shenton Way thoroughfare,” added Mr Tan.

Related JLL reading on REtalk Asia:

JLL advises on Hong Kong’s largest end-user office transaction since 2019

Over 90% of occupiers in Asia Pacific willing to pay a premium for tech-enabled spaces: JLL

Shenton House sold to Shenton 101 Pte Ltd for $538 million - JLL