The Pinnacle@Duxton, Singapore

[openH2O]

[QUOTE=Minority;64286491]Business Times - 23 Sep 2010




There's life in the ol' CBD yet

The old CBD is fast shedding its drab image and becoming more lively, says CHUA CHOR HOON

SHENTON Way, which saw the building of many office blocks in the 1970s, stood on par with Raffles Place in terms of rents at the time. But it was overtaken by Raffles Place which grew in the last three decades to be the prime office area, with bigger and newer office buildings. Average rents in Raffles Place in the second quarter of 2010 were 34 per cent higher than those in Shenton Way.

Rents in Raffles Place were more than 100 per cent higher than those in the Anson/Tanjong Pagar area in the 1970s as the latter was further away from the centre of activity.

However, the rental gap closed to about 70 per cent in the 1990s as buildings like Fuji Xerox Tower, Southpoint, and Keppel Towers improved the stock offering. Nevertheless, the area remains a poor cousin to Raffles Place. And so is Shenton Way, with its assorted buildings that do not form a critical mass.

But things are looking up for both Shenton Way and the Anson/Tanjong Pagar area, even as interest and hype centre on Marina Bay which is taking shape. The two older parts of the Central Business District (CBD) are undergoing a rejuvenation and becoming more vibrant too.

Living in the city taking off

Living in the city did not take off for many years despite government efforts through its land sales programme. International Plaza was one of the few pioneer buildings in the 1970s that integrated residential with office use.

The Urban Redevelopment Authority's (URA) 1995 planning report for the Downtown Core listed the lack of a live-in population in the predominantly office area as a weakness. Plans were made to introduce residential developments into the central business district.

State land was sold for mixed developments that included residential use. Office space was allowed to be converted into other uses including residential, except for a brief period between May 2007 and October 2008 when office space was in short supply.

This has resulted in new residential developments springing up in the old CBD like the Icon (completed), One Shenton, 76 Shenton, The Clift, Lumiere (completed recently), and Altez.

Their prices range from $1,700 to $2,110 per sq ft, slightly below the $2,000 to $2,600 per sq ft which smallish developments in District 9 like the Espada, Vivace, and Vida currently command. Owning a home in the CBD has become an investor's favourite, as evidenced by the quick sale of units at The Icon, One Shenton, and 76 Shenton when they were launched.

Hotel cluster is forming

There are currently only two large hotel developments - M Hotel (413 rooms) and The Amara (380 rooms) - in the Anson/Tanjong Pagar area. There are, however, numerous boutique hotels such as Klapsons, Berjaya Singapore, and New Majestic Hotel.

The cluster of hotels is growing, with two hotels (660 rooms) currently being built on government sale sites at Tanjong Pagar, and a confirmed site next to Tanjong Pagar MRT, which was launched for tender on July 30, that could supply an estimated 315 hotel rooms.

In addition, there are three reserve hotel sites in the H2 2010 government land sale programme - two at Tanjong Pagar and one at Robinson Road - which could contribute close to 900 rooms. When completed, the cluster of hotels at Tanjong Pagar will be comparable in size to those at the Singapore River.

Rental gap with Raffles Place closer

The office rental gap between Raffles Place and Anson/ Tanjong Pagar has closed since the 1990s to 42 per cent recently as new office buildings of prime quality were completed. Some occupiers from the prime Raffles Place area have moved to the new buildings at Anson/Tanjong Pagar, which reflects the area's growing attraction.

For example, BlueScope Steel has relocated its office from Singapore Land Tower to Twenty Anson while QBE and Sumitomo Corporation have shifted from OCBC Centre and Equity Plaza respectively to Mapletree Anson.

Although the rental gap between the Raffles Place and Shenton Way areas has remained at about 35 per cent since 1990, this could become closer in the future as more old buildings are renovated or redeveloped. There is hardly any state land in Shenton Way that the government can sell to assist in rejuvenation. However, the private sector has in recent years been active in refreshing the area.

Many old buildings have or are undergoing rebuilding such as Tokio Marine Centre (former Asia Chambers Building), UIC Building, Afro Asia Building, and VTB Building. More changes are in the pipeline as several old buildings have recently changed hands, like Marina House, Chow House, Aviva Building, Cecil House, and DBS Building.

The old CBD is fast shedding its drab image and becoming more lively. The Anson/Tanjong Pagar end is developing into a mixed use area with spanking new offices and hotels while the Shenton Way area is becoming more residential with old offices being upgraded. The 24-hour McDonald's at Springleaf Tower speaks volumes for the growing population and nightlife in the old CBD.

The writer is head of South-east Asia research, DTZ

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.[/QUOTE]

2010 we shift into Tanjong Pagar....

[openH2O]

[openH2O]

[openH2O]

[openH2O]

[openH2O]

OUE Acquires Iconic DBS Towers for S$870.5M
Singapore, 11 August 2010 – Overseas Union Enterprise Limited (“OUE” or the Group) is at the
forefront once again with its announcement that its wholly-owned subsidiary, Total Apex Limited
(“APEX”) has entered into a conditional sale & purchase agreement to acquire the 99-year leasehold
DBS Towers One and Two (“DBS Towers”) for a purchase consideration of S$870.5 million (the
“Acquisition”). DBS Towers is a prime office building located in Shenton Way, at the heart of
Singapore’s Central Business District (“CBD”).
Built in 1975, DBS Tower One was then the tallest building in Singapore and the first to incorporate a
covered walkway around the entire city block. Together with DBS Tower Two, the 37-storey
skyscraper comprises a total gross floor area (GFA) of approximately 1,239,642 sq ft. Both towers
are currently fully leased.
Being in close proximity to the Marina Bay area, DBS Towers are poised to benefit from Singapore’s
development into a global city for “Work, Live and Play”. The commercial landscape and inner-city
living in this area are set to be dynamically transformed by the vibrant activities with the addition of a
host of convention, leisure, commercial and entertainment facilities like the Integrated Resort, water
promenade and Gardens by the Bay. This gives rise to asset enhancement potentials in DBS Towers,
a development strategically located in this corridor of exciting opportunities.
The Singapore office market has seen a broad-based recovery in demand from all business sectors
led by financial institutions on the back of strong economic recovery and a revival in business
confidence. This has not only resulted in many pre-commitments in substantial future new supply,
thereby reducing the spectre of oversupply but also the turnaround in prime office rents. Coupled with
the limited new supply of office space in 2013 and 2014, prime office rents are expected to rise over
the next few years. DBS Towers, being in the heart of CBD, is poised to benefit from organic growth
via positive rental reversions.
Commenting on the acquisition, OUE Executive Chairman Stephen T. Riady said, “This valuable
addition is in line with our strategic goal of leveraging our local market expertise to maximize exciting
investment opportunities from high-yield properties and landmark assets in Singapore. Our multiplatform
approach to property development places us in a unique position to enhance the long-term
sustainability of our business grounded on the growth of rental income stream from our high quality,
actively managed portfolio.”
The Acquisition will be funded by a combination of internal funds and debt facility to be arranged by
Standard Chartered Bank. Standard Chartered Bank is the financial advisor to OUE for this
acquisition.

[openH2O]

Singapore Technologies Building located in Tanjong Pagar up for sale
By Travis Teo | Posted: 06 October 2010 1503 hrs


Photos 1 of 1

Singapore Technologies Building




SINGAPORE: The Singapore Technologies Building in the Central Business District's (CBD) Tanjong Pagar precinct is up for sale.

Property consultancy Jones Lang LaSalle expects proposed bids to reach above $150 million which works out to $1500 per square foot on net lettable area.

The 13-storey freehold building sits on a 19,402 square feet site.

Located on the corner of Cantonment and Lim Teck Kim Roads, it has a gross floor area of 128,600 square feet.

Jones Lang LaSalle said the building has an average office floor space of over 15,000 square feet and 135 parking lots.

It also has a rooftop garden space which can be used for recreational functions.

The building is conveniently located, allowing users to access it without incurring ERP charges.

Given the upbeat economic activity, Jones Lang LaSalle expects strong interest from investors like developers and private buyers.

It added that the positive financial sentiment is also driving strong rental and capital value growth in commercial space.

Interested investors must make their submissions by November 4, 2010. - CNA/fa

[openH2O]

The URA has launched a white site located at Seah Street/Choon Guan Street up for public tender.

The 1.5-ha land parcel has been launched for sale through the Confirmed List under the H2 2010 Government Land Sales Programme.

The site is located at Tanjong Pagar, the southern gateway to the CBD and Marina Bay, and adjacent to the Tanjong Pagar MRT Station, occupying a prime location in the core of the city centre, amid well-established residential, commercial and hotel developments.

The land parcel benefits from a high degree of visibility as it faces the key junction of major roads like Cecil Street, Maxwell Road, Robinson Road and Anson Road. The future development on the land parcel can have a maximum height of 280 metres above mean sea level (AMSL), commanding panoramic views of the city skyline across the CBD to the Marina Bay area, and the Chinatown Historical District.

Located adjacent to the Tanjong Pagar MRT Station, the future development will also be connected directly through an extensive underground pedestrian network to surrounding projects at International Plaza, 8 Shenton Way and Capital Tower.

With a gross floor area (GFA) of 157,744 sq m, the site provides a great opportunity for a high-quality mixed use development.

The URA said a minimum of 60 percent of the maximum permissible GFA has to be allocated for office use, while at least 10 percent has to be set aside for hotel rooms and hotel-related usage to provide more hotel options in the area and boost the vibrancy in the city centre.

The public tender for the site will close on November 16.

[openH2O]

From Streetdirectory,

[openH2O]

[/QUOTE]

[openH2O]

[QUOTE=RafflesCity;51347355][/QUOTE]

[openH2O]

Big changes with higher land productivity

2 Feb 2010
Business Times

ECONOMIC STRATEGIES COMMITTEE
Underground land banks, Tanjong Pagar waterfront district on the cards

By EMILYN YAP

SINGAPORE's physical landscape looks set to undergo big changes some 10 to 20 years down the road - Tanjong Pagar could become a new bustling waterfront district after the port moves, and land banks could be created underground.

These are just two of several possible developments, following recommendations from the Economic Strategies Committee (ESC) to improve Singapore's land productivity. ESC also proposed that the government support more intensive use of industrial land, more flexible use of land where needed, and offer more business locations.

'Our land use strategies and infrastructure will support ESC's new economic strategies, in particular to make Singapore a better place not just to work but also for Singaporeans to live and play,' said Senior Minister of State for National Development and Education Grace Fu yesterday. She is also co-chair of the sub-committee looking at higher land productivity for future growth.

One suggestion poised to create buzz is the redevelopment of port land at Tanjong Pagar, Keppel and Pulau Brani to create a new waterfront district. This could happen after the port's lease at terminals expire in 2027.

Comparable in size to Marina Bay, the area would allow the business district to grow and could accommodate homes, hotels and other recreational facilities. 'We are quite excited about the potential,' Ms Fu said. 'What form it will take is something that we will work on but of course it has to be relevant to the time when we will be developing it . . . We are not looking at developing it anytime soon.'

The ESC also recommended that the government study the feasibility of having a consolidated port at Tuas, as part of Concept Plan 2011.

According to Real Estate Developers Association of Singapore CEO Steven Choo, discussions on relocating the port in Tanjong Pagar have been going on for some time. While the suggestion is not new, 'I think it is certainly very good timing,' he said.

It is too soon to predict the proposal's impact on developers, he added. 'When you see some of these ideas translated to the concept plan and then cascaded down to the master plan provisions, then I think it becomes clearer.'

Market watchers have been anticipating the remaking of Tanjong Pagar for some time, said DTZ executive director Ong Choon Fah, pointing out that it 'makes sense' to consolidate ports where the land cost is not so expensive.

Besides recycling land, the government can also create new space. ESC suggested that it add to its land bank by creating basement space at the same time that it develops underground infrastructure such as rail networks. 'We are limited in terms of land, but I think we are not limited in terms of imagination and creativity,' Ms Fu noted.

ESC also proposed that the government develop a subterranean land rights and valuation framework, establish a national geology office and draw up an underground master plan so that spaces above and under ground are 'synergised'. There should also be investment in research and development on creating subterranean space.

The government has ventured into underground projects in the last few years. Construction of the Jurong Rock Cavern, an oil storage facility below the seabed, is ongoing. JTC Corporation is also embarking on soil and rock investigations at Kent Ridge for the possible creation of an underground science city.

In addition, ESC raised the need for the government to step up the rejuvenation of mature industrial estates, and intensify the use of existing industrial land. It could offer incentives and grants to encourage the private sector to pioneer innovative plant layouts which would minimise land take-up.

In this respect, JTC has been working on several new concepts for factories. One involves the use of a giant hoist to move bulky goods even to high floors, allowing developers to build taller facilities with smaller footprints.

Colliers International industrial director Tan Boon Leong suggested that the government could take the lead in building prototypes for innovative facilities. 'If it proves to be successful, then everyone would want to go for it,' he said.

ESC also proposed that the government study targeted ways to widen land use flexibility. This would be useful as lines between certain business activities blur.

DTZ's Mrs Ong supported this recommendation. The use of industrial space has changed in the last few years and more knowledge-based activities are taking place there, she observed. Some companies also like to co-locate various functions, such as R&D and sales, she added.

ESC further noted that there should be greater choice and diversity in business locations for various types of companies. For instance, the government can provide incubator spaces for SMEs and start-ups and new estates for industries.
__________________

[openH2O]

Tuas mega port: Experts back idea

7 Feb 2010

Yes, go west and make Tuas the new mega port, if a proposal to free the Tanjong Pagar port area for a waterfront makeover gets the green light, experts suggest.

Although the lease at Tanjong Pagar, Keppel and Pulau Brani terminals ends only in 2027, it was a proposal by the Economic Strategies Committee (ESC) last week that sparked the buzz among shipping and property analysts.

The ESC had mooted turning Tanjong Pagar into a new waterfront development. It also called for a study on the long-term possibility of consolidating current port facilities at Tuas into a mega container port.

The Tanjong Pagar port area currently boasts an area of 85ha and a quay length of 2.3km.

The Maritime and Port Authority of Singapore (MPA) said that under the Government's Concept Plan review, it will assess the feasibility of a consolidated mega port.

The MPA will take into account its need to achieve best-in-class efficiency and sustain Singapore's long-term competitiveness.

Mr Ho Eng Joo, executive director of investment sales for real estate consultancy Colliers International, said giving the go-ahead would be good both for the Tanjong Pagar and Tuas areas.

He said: 'With its good location and easy access to Raffles Place and Shenton Way, Tanjong Pagar will be a very exciting waterfront and developers will be interested in it.

'Tuas, mostly industrial, will have the complementary infrastructure for a port.'

Mr Karamjit Singh, managing director of Credo Real Estate, said it makes sense to relocate the port as it is unproductive to have it so close to the heart of town as the land could be better used.

'Tanjong Pagar will be of interest to developers and investors alike,' he added.

Dr Thomas Menkhoff, practice associate professor of organisational behaviour and human resources at the Singapore Management University's Lee Kong Chian School of Business, said many ports elsewhere have moved because they were no longer competitive at their original location or because of 'strategic common sense'.

Citing the German city of Bremerhaven, he said its new riverside quay on the mouth of the River Weser enhanced the competitiveness of the city's port.

Associate Professor (Practice) Tan Kok Choon from the department of decision sciences at the National University of Singapore Business School, said Singapore's main container traffic is now distributed over two locations: Tanjong Pagar and Pasir Panjang.

He agreed that if all container traffic could be concentrated at one place, efficiency and utilisation will go up.

Prof Tan said the new port must have such capabilities as turning around container vessels fast and getting vessels to berth quickly on arrival.

'As Singapore's container volume continues to grow beyond 2027 to become a super mega trans-shipment hub, the new location should be large enough to cater to more container vessels calling at Singapore,' he said.

He added that given Singapore's geography, the new port will most likely have to be along the southern coast, which leaves Tuas as the ideal choice since Changi Airport is in the east.

Dr Menkhoff said: 'The Jurong Island project and the successful extension of the Tuas Peninsula over the last few years show that the western area has what it takes to have new port facilities.

'However, concerns might include balancing development needs and protecting marine life as the waters around Tuas contain dozens of marine species.'

At least one shipping line is keen to see such a move.

Mr Teo Siong Seng, president of the Singapore Shipping Association and managing director of Pacific International Lines, said most of the container goods movement is towards factories in Tuas.

'So a port in Tuas would save on road transport greatly. It's a good plan and we definitely welcome it.'

By Shuli Sudderuddin
Straits Times

[psyoyo]

wow, can u imagine all the freed up space once port moves to tuas? all the current infrastructure, like the warehouses etc, will probably need to be redeveloped by then... they built the west coast highway to facilitate smoother transportation for those container trucks to the west!

[openH2O]

It is a proposal by Economic Strategies Committee (ESC) for the government to decide. But would be great if tanjong pagar port turn into the next marina bay. This could be our next economic stimulus after the marina south development.

That is provided Tuas could build the mega port consolidating all the ports along the west.

[maxxum]

[openH2O]

SINGAPORE - Singapore vowed Monday to conserve a historic train station after neighbouring Malaysia cedes ownership of railway land in the city-state.

Foreign Minister George Yeo said the Tanjong Pagar station, built during British colonial rule over the two countries, would be protected.

The building, located in an obscure corner of Singapore’s port and business district, will be vacated by July 2011 under a deal to settle a longstanding land dispute between the two countries.

The station’s facilities will be relocated to Woodlands, a northern suburb across a narrow strip of water from Malaysia. But "the railway station building in Tanjong Pagar will be conserved and will serve as the centrepiece for any future development on the site," Yeo said in parliament.

Land-scarce Singapore is in constant need of space for future development and some Singaporeans were concerned that the site would be turned into another complex for condominiums and shopping malls.

A group of Singaporeans started a petition to preserve the station and its rich history for future generations.

"I want them to know that once upon a time, this station connected Singapore to the rest of the world... before Internet made it easy to Google for anything," Carolyn Seet, who started the petition in July, told AFP this month.

"Old buildings remind you of your roots," she said.

With its faded facade and four imposing life-size marble sculptures atop the main entrance, the station is an anomaly in a landscape dominated by office towers, hotels and high-rise apartment blocks.

The four sculptures represent agriculture, commerce, transport and industry -- the symbols of economic prosperity during the heyday of British rule until the late 1950s.

[openH2O]

Carlton Properties awarded Tanjong Pagar hotel land site
By Daryl Loo, Channel NewsAsia | Posted: 04 June 2007 2020 hrs

SINGAPORE: Carlton Properties Singapore has been awarded a 99-year leasehold hotel site in Tanjong Pagar, next to the Amara Hotel.

The company, part of Hong Kong tycoon Li Dak-sum's Carlton group, won the government tender for the site with its bid of S$123 million.

The URA site, on the corner of Tanjong Pagar Road and Gopeng Street, can yield about 20,000 square metres worth of space.

Carlton can build a 400-room hotel up to 30-storeys high on the site.

Market watchers said that Carlton's bid of S$573 per square feet per plot ratio is one of the highest for a hotel site in recent years.

The price far outstrips the S$518 dollars per square foot paid by Hong Leong Group for a site at Mohamed Sultan Road last year.

The hotel sector has seen an increase in activity as a sharp shortage of hotel rooms, coupled with rising room rates, has spurred developers to hunt for new sites.

In 2005, Carlton bagged a hotel site along Bras Basah, right next to its existing Carlton Hotel. - CNA/so

25 Jan 2008

[/QUOTE]

URA simulation.
[QUOTE=RafflesCity;10649896]Land Parcel at Tanjong Pagar Road / Gopeng Street


Maximum height - 30 storeys


[/QUOTE]

[QUOTE=RafflesCity;33040296]This rendering shows the simulated heights of the future developments.

[openH2O]

76 Shenton Way Singapore(Under Construction)




Turning old CBD offices into prime new homes

By Uma Shankari

(SINGAPORE) Some one million square feet of office space in the Central Business District (CBD) is likely to be converted into at least 1,000 private homes over the next three years.

Property analysts say that with the Marina Bay financial district now taking distinct shape, developers are looking to recycle older office buildings in the current CBD in anticipation of business activity moving to the new hotspot.


Redevelopment plans are also motivated by climbing luxury home prices which contrast sharply with falling office rents.

City Developments said at its results briefing last Thursday that it was looking to see if it could convert any of its office buildings in the 'old' CBD to residential use.

'It is a question of demand,' said CityDev chairman Kwek Leng Beng at the briefing.

CityDev's parent company Hong Leong Holdings is already redeveloping 76 Shenton Way, which has a net lettable area (NLA) of about 92,700 square feet of office space.

The 202-unit residential project due to come up on the site is likely to be launched within the next few weeks.

Other similar conversions in the pipeline include UIC Building on Shenton Way and Starhub Centre on Cuppage Road.

'With the theme of working, living and playing in 21st century Singapore fast becoming a lifestyle reality, we see great potential in quality residential developments in the core central region,' said a Hong Leong spokesman.

The trend is not new. Developers were looking to convert selected office space into residential use as far back as 2007. City- Dev, for example, launched its One Shenton residential project in January 2007, converting an office block into residential space. Since then, 316 apartments in the 341-unit project have been sold, with many going for more than $2,000 per sq ft (psf).

But other such plans were put on hold when in May 2007, fearing a shortage of office space, the Urban Redevelopment Authority (URA) called a halt to all conversion of offices in the central area to curb further depletion of existing stock.

The ban was lifted in late 2008 as fears of an office space oversupply emerged.

Knight Frank chairman Tan Tiong Cheng said that with the Marina Bay Sands integrated resort (IR) now ready to open its doors and the entire Marina Bay area taking shape, developers are now taking another look at their buildings located in the current CBD.

'It is the government's intention to have a new CBD in Marina South. So there is concern that some of the older office buildings may not be relevant to future needs,' said Mr Tan. 'Office rents have also dipped, so it is a good time to look at redeveloping some of these buildings now that the ban has been lifted.'

Elsewhere on Shenton Way, UIC has received permission to redevelop UIC Building into a mostly residential project. UIC's board says it is still assessing all alternatives to ensure the best use for the building. But sources told BT that the conversion could start some time this year. The property has close to 400,000 sq ft of office space.

Office real estate investment trust (Reit) CapitaCommercial Trust also said in January that it is looking at redeveloping Starhub Centre on Cuppage Road into a residential and commercial project with up to 80 per cent of the gross floor area devoted to residential use. The property currently has an NLA of about 280,000 sq ft and analysts estimate that 200-300 upmarket homes could be built on the site.

Other office properties that could be converted (either fully or partly) into private homes include KOP Capital's The Spazio on Cecil Street, and three buildings owned by Fission Group and Yi Kai Group - VTB Building on Robinson Road, and Aviva Building and Cecil House on Cecil Street.

In all, around one million square feet of office space could be removed from the market and transformed into upmarket homes.

City living has, in recent years, become more popular and luxury home prices are expected to climb this year. UBS Investment Research, for example, expects luxury home prices to rise 40 per cent in 2010 to reach $4,000 psf and maintains that prime home prices (in districts 9, 10, 11) could reach 2007 levels this year.

Falling office rents and an upcoming glut of office supply also means that office rents are widely expected to continue falling. Property firm Savills expects a 20-25 per cent fall in Grade A office rents in Singapore this year.

But Knight Frank's Mr Tan says that not all office buildings in the present CBD can be converted into homes.

'City living is only attractive if you have a view of the sea or you have some kind of a city vista,' he said.

The conversion of some office space into residential units will lend support to rents, analysts said.

UBS Investment Research said in late January that it now expects over one million sq ft of office space to be removed in 2010 and 2011, instead of the 550,000 sq ft expected earlier.

'As a result, we upgrade our prime office rents in 2010-2013 by 5 per cent,' said UBS analyst Regina Lim. 'We now expect prime office rent of $8.70 psf per month by end-2010 and $9.70 psf per month by end-2011.'

[psyoyo]

hi openH2O! thanks for all the interesting reads on the potential developments around our estate! Somehow everytime i finish reading your new post, i hear kah ching kah ching in the background... hahahaha......

[openH2O]

[openH2O]

Sun, Mar 28, 2010
The Business Times




Hong Leong sells Marina House for $148m

By Kalapana Rashiwala

(SINGAPORE) Hong Leong Group has inked a deal to sell Marina House at Shenton Way for $148 million, BT understands.

The buyer is believed to be a group led by niche property developer and investor Melvin Poh. Members of his consortium are said to include Victor Soh of Fortune Development.


Market watchers suggest that Mr Poh, who also led the purchase of three ageing CBD office blocks last year with an eye to redeveloping them into residential use, probably has the same intention for Marina House.

The 21-storey office block is on a site with a remaining lease of nearly 60 years.

The $148 million purchase price reflects about $1,130 per square foot based on the building's existing net lettable area of about 130,000 sq ft. The building has a few tenants (the most prominent being Indian Airlines) but is substantially vacant - probably a deliberate strategy on the part of Hong Leong Group as it weighed various options, including the possibility of redeveloping the site into residential use.

In the end, market watchers suggest Hong Leong may have decided it made more sense to sell the property, and leave the redevelopment potential to the next owner, rather than get bogged down with having to seek approval from the authorities to top up the site's lease to a fresh 99-year term.

In the past few years, the authorities have turned down a few applications for lease top-ups in conjunction with redevelopment proposals in the CBD, according to earlier reports.

Just a stone's throw away from Marina House, Hong Leong Group secured approval to redevelop another of its office blocks (the former Ong Building) into apartments, which also entailed a lease upgrade. This 39-storey project, 76 Shenton, went on the market on Wednesday and the 202-unit development was sold out by yesterday evening, achieving prices ranging from about $1,600 psf to $2,600 psf.

Under Master Plan 2008, Marina House is zoned for commercial use with an 8.4 plot ratio (ratio of maximum potential gross floor area to land area). By some estimates, the $148 million purchase price could reflect a unit land cost of $1,050 psf of potential gross floor area, inclusive of a lease-upgrading premium assuming the authorities approve a lease top-up.

Some analysts suggest that a differential premium may not be payable if a conversion of the site's use to residential use is allowed, as the building's existing gross floor area already surpasses the Master Plan plot ratio.

Marina House was spruced up a few years ago. It was sold through a private treaty deal, believed to have been brokered by DTZ.

Last year, Mr Poh's Fission Group teamed up with Yi Kai Group to buy Aviva Building in Cecil Street and the next-door Cecil House for a total of $101 million, in a Jones Lang LaSalle-brokered deal.

The two partners also picked up VTB Building in Robinson Road for $71 million. That deal was brokered by DTZ.

This article was first published


Marina house


76 Shenton

[openH2O]

The most impact to the changes of Tanjong Pagar skyline is the P@D to me.

[psyoyo]

u know, everytime i have foreign visitors coming into town or when I chat with my ang moh colleagues, one of the common questions they ask is where I stay in. Once I explain to them that I stay in public housing, you can just see it in their faces that they don't think much of it but still want to be polite about it. Nowadays, I just invite them up to my home if they ask the question. And months down the road, I still get compliments from them about our estate.

[crescent_sf]

Hi OpenH2O,
just wonder where you got the book and how much it cost ?