Sultan Plaza relaunched for the third time with potentially lower reserve price of S$325m
Yong Hui Ting
COMMERCIAL building Sultan Plaza will relaunched yet again on Friday, after its earlier 2 attempts failed to attract a suitable buyer, said exclusive marketing agent Teakhwa Real Estate on Thursday (Sept 8).
Managing director of Teakhwa Real Estate Sieow Teak Hwa said the process to lower its reserve price to S$325 million, from its earlier S$360 million, is still ongoing. Currently, only 72 per cent of the owners by share value have signed on the supplemental agreement to lower the reserve price.
At the proposed reserve price of S$325 million, the unit land rate will be brought to S$1,545.80 per sq ft per plot ratio, inclusive of the estimated costs to buy the state land, differential premium and the lease top-up premium. Taking into account an 8 per cent bonus gross floor area (GFA), the psf per plot ratio will then be S$1,504.30.
Sultan Plaza’s land has a 99-year leasehold tenure starting May 1978, leaving a balance lease term of about 55 years.
This is the second time the property has had its reserve price revised, with the last revision being made in December 2021, down to S$360 million from the S$380 million announced during its collective-sale attempt in 2019.
Situated between Beach Road and North Bridge Road, the 45-year-old property at 100 Jalan Sultan comprises 211 commercial units and 33 offices, totalling 244 strata lots.
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The squarish site spans 52,471.3 square feet (sq ft). As it is zoned for commercial use under the Urban Redevelopment Authority’s (URA) Master Plan 2019, no additional buyer’s stamp duty (ABSD) is payable.
It has a plot ratio of 5.0, and may potentially be redeveloped up to a height of 153 metres above mean sea level.
The Singapore Land Authority had also earlier gave an in-principal approval for a potential sale of remnant state land adjoining the site, which spreads about 10,968 sq ft. Including the state land, the site may be enlarged to about 63,439.8 sq ft and developer may redevelop the site to an estimated gross floor area (GFA) of 317,198.9 sq ft, said Teakhwa Real Estate.
Based on an outline planning permission advisory from URA in 2019, a developer may choose from 3 redevelopment options: as a hotel, a commercial and residential development, or a serviced apartment.
As a mixed-use development with 20 per cent for commercial use and 80 per cent for residential use., the site holds approximately 63,439.8 sq ft of commercial space and some 253,759.1 sq ft of residential space.
“With strong sales and high selling prices achieved for new developments nearby such as The M, Midtown-Modern and Midtown Bay, we should see better interest from developers this time round,” said Sieow.
The closing date for the sale of the property by public tender will only be decided when there is confirmed interest from a potential buyer, or after it has obtained the 80 per cent mandate from owners to sell it at a lower reserve price, Sieow added.
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