Tan Boon Liat Building sold en bloc to Kingsford Group at lower reserve price of S$950 million

[SINGAPORE] Freehold Tan Boon Liat Building has been sold en bloc to a unit of Kingsford Group for S$950 million, subject to the fulfilment of certain conditions and owners’ approval.

This likely represents the largest collective sale transaction in Singapore so far this year, said exclusive adviser and marketing agent for the property Cushman & Wakefield on Tuesday (Jul 21).

The 15-storey building was first launched for collective sale in February 2025 with a reserve price of S$1.15 billion. While the tender attracted expressions of interest, it closed without securing a buyer. The property was subsequently relaunched in February 2026 at a lower reserve price of S$1 billion – about 13 per cent below the initial asking price.

The transaction value of S$950 million is 5 per cent below the site’s revised reserve price of S$1 billion and around 17.4 per cent lower than its original reserve price of S$1.15 billion.

The sale remains conditional on obtaining the support of owners representing at least 80 per cent of the development’s share value and strata area. Owners will be briefed on the proposed transaction at an upcoming extraordinary general meeting.

Christina Sim, senior director of capital markets at Cushman & Wakefield, said: “The Urban Redevelopment Authority (URA) wanted to introduce more residential developments in this locale and, following the completion of a comprehensive study spanning some eight months, made the planning decision to potentially rezone the site.”

She added that the rezoning could “unlock significant value for stakeholders, culminating in an extraordinary uplift in the site’s value”.

Tan Boon Liat Building is an industrial warehouse and showroom landmark located at the crossroads of Outram Road and Zion Road.

URA advised that the current “Business 1” zoning with a plot ratio of 3.1 be rezoned to “Residential with Commercial on the first storey” and a plot ratio of 4.9. This represents a 50 per cent uplift in the total allowable gross floor area (GFA) for the site.

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Tan Boon Liat Building in Outram up for sale again at lower S$1 billion reserve price

Additionally, the government advised on the alienation of a few remnant state land lots to be amalgamated with the site. These state land lots are estimated to total around 1,365 square metres (sq m), subject to the relevant authorities’ final survey.

A maximum of 1,500 sq m of commercial GFA can be supported at the first storey of the new development. The prescribed heights for the new development allows for a project with twin skyscrapers of up to 48 storeys, said Cushman & Wakefield.

Private residential launches in the Havelock vicinity have seen robust demand. Four projects have launched in the vicinity since August 2025 and have collectively sold close to 2,000 units, said PropNex CEO Kelvin Fong.

Based on URA Realis caveat data, River Green and River Modern have reached take-up of around 94 per cent at average prices of S$3,148 per square foot (psf) and S$3,281 psf, respectively.

Meanwhile, Zyon Grand has achieved about 90 per cent take-up at an average of S$3,065 psf, while Promenade Peak stands at roughly 72 per cent sold with an average transacted price of S$3,033 psf.

Fong also pointed to Kingsford’s unsuccessful bids for the state land tenders at River Valley Green Parcels B (S$1,251 psf per plot ratio) and C (S$1,626 psf per plot ratio).

“That the group’s own bid in this precinct rose by nearly 30 per cent over some 16 months is indicative of how land expectations here have moved. Having pursued sites in this area twice through the government land sales (programme), Kingsford has now tried to secure its position via the collective sale market instead,” he said.

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.

The sale is subject to approval by the Strata Titles Boards.