Sultan Plaza collective sale closing date extended to Mar 3

THE closing date of Sultan Plaza's collective sale has been extended to Mar 3, 2022, to obtain an in-principle approval (IPA) for a potential sale of an adjacent piece of land.

The Singapore Land Authority is currently processing the application for an IPA for the 10,968 square feet (sq ft) of remnant state land, and the result "can be anytime soon", said marketing agent Teakhwa Real Estate.

"With an IPA obtained, it will give certainty to any potential buyers when they bid for the site," the marketing agent said, adding that a delayed closing will also allow developers more time to evaluate and reassess the enlarged site's potential and land pricing.

The tender for Sultan Plaza's collective sale was originally slated to close on Feb 10, 2022.

In December 2021, the commercial building was put up for collective sale at a reserve price of S$360 million, down from S$380 million in its previous collective sale attempt in 2019.

Interested developers could choose from 3 redevelopment options for the site: as a hotel, a commercial and residential development, or a fully commercial building.

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Should the approval for the potential state land be given, the area of the collective sale site will increase to 63,439.8 sq ft, and have a gross floor area of 317,198.9 sq ft.

To build a new mixed-use development that is 40 per cent commercial and 60 per cent residential, the reserve price of S$360 million will reflect a unit land rate of S$1,475.80 per sq ft per plot ratio (psf ppr), including estimated costs to buy the state land, differential premium and the lease top-up premium.

After factoring in the 7 per cent bonus gross floor area, this will average down to S$1,450.80 psf ppr.

As for a new hotel development, the unit land rate will be S$1,548.30 psf ppr, inclusive of the estimated costs to buy the state land, differential premium and the lease top-up premium.

There is no additional buyer's stamp duty payable for the commercial site according to Teakhwa Real Estate's managing director Sieow Teak Hwa.

"Sultan Plaza is 1 rare site that allows many potential development options. It is appealing to developers due to its unique downtown location, which is also seldom available, and also the owners' reasonable asking price," the marketing agent said.

The tender will close at 3 pm on Mar 3.

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