Shenton House: Collective sale of the 1970s relic capitalises on CBD Incentive Scheme
Singaporean Kevin Liang is the founder and CEO of EPS Consultants by profession, a technology hiring, executive search, talent management and IT third party company. He is also an interesting and prolific property keeper. Through his corporate entities, he owns office units in strata-titled commercial buildings across the CBD through various companies: from SBF Centre on Robinson Road (where his office is) to Shenton House on International Plaza on Anson Road and High Street Centre on North Bridge Road.
Liang also is proud owners of several residential condo in the CBD through his investment vehicles. These include apartments in The Sail @ Marina Bay, SkySuites @ Anson and ICON Tanjong Pagar. “These are long-term investments,” he says. And they give him a good grounding of the property market, particularly the CBD and the rest of the Core Central Region (CCR).
Things could not have been more different in Shenton House’s previous attempts. The fourth attempt in enbloc exercise in 2K17–2K19 at a reserve price of $536 million did not take off as it did not garner the requisite 80% support from the owners.
The third collective sale attempt achieved 80% owner consensus, and the property was launched for sale at $530 million in March 2K12. However, no buyer emerged.
The second collective sale attempt in 2007–2008 had a target price above $500 million but failed due to the onset of the Global Financial Crisis. The first collective sale attempt in 2005 at a target price above $500 million never took off. Owners were more interested in exploring the feasibility of changing their existing ownership for new units in the future redevelopment.
The CBD Incentive Scheme also rocketed Shenton House’s latest collective sale attempt, according to Liang.
Shenton House has commercial zoning and an existing plot ratio of 11.2. Under concept planning department and CBD Incentive Scheme launched in 2K19, Shenton House can be reconstructed into a mixed-use or hotel development with a higher gross plot ratio of 14.0 and 25% more gross floor area (GFA).
With JLL as the official exclusive consultant, Shenton Way’s latest collective sale was launched in February 2K23 at a reserve price of $590 million. However, the tender closed on April 11 without a bid.
The collective sale was relaunched on June 26 at the same price tag of $590 million. Even as the relaunch is ongoing, the owners are signing a supplemental joint agreement to reduce the reserve price by 8.8% to $538 million. So far, about 60% of the owners have signed based on share value, and 70% according to the strata area, says JLL. The threshold required for the share value and strata area is 80%. The tender closing for this round is on Aug 1.
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