Freehold Tan Boon Liat Building site up for sale for S$1.15 billion, may be rezoned for residential use
The buyer is expected to pay a land betterment charge estimated at S$830 million to S$840 million on top of the purchase price
TAN Boon Liat Building has been put up for collective sale at S$1.15 billion with the Urban Redevelopment Authority (URA) expected to support the rezoning of the industrial site for residential with commercial use.
The rezoning could see the prime freehold site at 315 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 square feet (sq ft). The buyer is expected to pay a land betterment charge estimated at S$830 million to S$840 million on top of the purchase price.
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, subject to compliance with the planning and urban design requirements.
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.
Based on the reserve price, including the 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 S$1,888 per square foot per plot ratio.
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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.
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 are also hugely advantageous.”
Frequented by furniture buyers, Tan Boon Liat Building is on the doorstep of the 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 around 1,055,399 sq ft of GFA, including bonus GFA.
They would be able to build up to 1,500 square metres (sq m) 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 130 m Singapore height datum (SHD) to 180 m SHD. This allows the developer to “build a landmark skyscraper”, Cushman & Wakefield said.
The tender for 315 Outram Road will close on Mar 18, 3 pm.
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