Golden Mile Tower back on the market at S$556 million

GOLDEN Mile Tower will be relaunched for collective sale again – this time at a lower reserve price of S$556 million, down 7.3 per cent from the S$600 million reserve price listed in its previous attempt. 

The lower reserve price translates to a land rate of S$1,117 per square foot (psf), before factoring in land-betterment charges and a premium to upgrade the lease to a fresh 99-year period. 

Anna Tan, business development director at Tag Realty, the sales agent, told The Business Times that the current attempt is “quite promising” – the owners are submitting an outline application to the Urban Redevelopment Authority (URA) for the redevelopment of the site.

The proposed redevelopment will feature two towers – one at 32 storeys and the other, 35 storeys – with a proposed plot ratio of 5.3 and gross floor area of 46,253.1 square metres (sq m). 

Some 30 per cent of the mixed-use development will be for retail; 48 per cent for offices; 16 per cent for hotel use; and 6 per cent for “distinctive penthouses with a private sky club”, said Tan. 

She added: “With no Additional Buyer’s Stamp Duty for commercial buyers and no restrictions on foreign ownership, this is a prime investment opportunity in a high-demand location.”

This is the third en bloc attempt for the owners of the 99-year leasehold commercial development at 6001 Beach Road. It was first launched for collective sale in November 2022 at an indicative price of S$650 million; it closed with no bids early in 2023. In April 2023, it was relaunched with a S$600 million reserve price, but there were no takers then either.

Based on previous reports by The Business Times, Golden Mile Tower has been valued at S$598 million.

At the previous asking price of S$600 million, owners of the retail units would have each received an indicative amount of between S$370,000 and S$14.7 million, depending on the size of their units. 

Those with office units would have received between S$540,000 and S$12.4 million.

Located in District 7, Golden Mile Tower has a gross floor area of 38,953 sq m and site area of 8,727 sq m. It comprises 405 strata lots, with a total of 251 retail units, 152 office units, a cinema and a car park. 

The 22-storey building, zoned for commercial use in URA’s 2019 Master Plan, has around 46 years left on the lease.

Tan said the tender for Golden Mile Tower is likely to be launched later this month and close in October with – it is hoped – the outline application approved by URA.