Tan Boon Liat Building: Up for sale at $1.15 billion
Site may be rezoned for residential use
By Jessie Lim -
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Tan Boon Liat Building has been put up for collective sale for $1.15 billion, with the Urban Redevelopment Authority (URA) expected to approve the rezoning of the industrial site for residential with commercial use.
The rezoning could see the prime freehold site in Outram Road gain a 50 per cent uplift in allowable gross floor area (GFA), with a plot ratio increase from 3.1 to 4.9, said marketing agent Cushman & Wakefield. Currently, the 15-storey building sits on a site area of approximately 175,655 sq ft. The buyer is expected to pay a land betterment charge estimated at $830 million to $840 million on top of the purchase price.
May Become a Residential Project
The outline planning advice was issued from the URA on Jan 22, 2025, following a study of the site which concluded after eight months.
According to the document seen by The Business Times, URA has indicated that rezoning of the site from Business 1 to residential with commercial on the first storey may be supported. An outline application is a proposal that allows building owners and developers to test out a proposed land use, plot ratio or building height of a property. The document is valid for six months.
Tan Boon Liat Building is a 9 minute walk from the nearest Havelock MRT Station.
Tan Boon Liat Building Land Sale Price
Based on the reserve price including land betterment charge payable for rezoning and premiums payable for the bonus GFA and remnant land, buyers would have to pay an estimated land rate of $1,888 psf per plot ratio.
The sale of the site is not expected to incur additional buyer’s stamp duty (ABSD) for the developer, as the plot currently has a Business 1 zoning. Developers acquiring land for residential use face a 40 per cent ABSD on their land purchase including a non-remittable 5 per cent.
Ms Christina Sim, Cushman & Wakefield’s senior director of capital markets, said: “Demand for residential properties, especially those located at the city fringe, is expected to be strong, aided by favourable credit conditions. Being freehold in tenure and located on the Thomson-East Coast line is also hugely advantageous.”
Tan Boon Liat Building has more than 30 home decor & furniture wholesalers.
Frequented by furniture buyers, Tan Boon Liat Building is next to Havelock MRT station.
Potential purchasers would also be able to amalgamate a few remnant state land plots to the site, allowing them to obtain a site of up to over 1,055,399 sq ft of GFA including bonus GFA.
They would be able to build up to 1,500 sqm of commercial GFA on the first storey and are required to set aside at least 15,000 sq m for long-term serviced apartments.
The new development will have an allowable height from between 130m Singapore height datum (SHD) to 180m SHD. This allows the developer to “build a landmark skyscraper”, Cushman & Wakefield said.
The tender for the site will close on March 18, 2025 at 3pm.
This article was first published in The Straits Times.