Tan Boon Liat Building is a prime freehold industrial site that could be rezoned to residential with commercial use
Tan Boon Liat building has been put up for collective sale for $1.15m and it is expected that the Urban Redevelopment Authority (URA) will support the rezoning of the industrial site for residential with commercial use.
Tan Boon Liat is a 15-storey building that is best known for housing multiple furniture and home decor stores.
The rezoning could see the prime freehold site at 315 Outram Road gain a 50 per cent in allowable gross floor area (GFA) with a plot ratio increase from 3.1 to 4.9.
The freehold site, which is adjacent to the Havelock MRT Station on the Thomson-East Coast Line (TEL), occupies two separate land plots zoned for “Business 1” use with a combined site area of about 175,665 sqft.
In addition, URA has advised on the alienation of a few remnant state land plots to be amalgamated into the main plot. The state land plots are estimated to measure about 20,451 sqft, subject to the relevant authorities’ final survey and approval.
Based on the reserve price, including land betterment charges on rezoning and premiums payable for the bonus GFA and remnant land, buyers would have to pay an estimated land rate of $1,888 per square foot per plot ratio.
Potential purchasers would also be able to amalgamate the remnant state land plots to obtain a site of 1,055,399 sqft of GFA, including bonus GFA. They would be able to build uop to 1,500 square metres (sqm) of commercial GFA on the first storey and are required to set aside at least 15,000 sqm for long-term serviced apartments.
Christina Sim, senior director at Cushman & Wakefield, believes the site will appeal to developers given its freehold tenure and location on the TEL, which will be a draw for homebuyers. She adds: “The biggest game changer, however, is the fact that there will not be any Additional Buyer’s Stamp Duty (ABSD) to be levied on the potential purchase as the original site has a “Business 1″ zoning”.
The tender for the site will close on March 18 at 3pm.
(Source: The Business Times, EdgeProp)