Tan Boon Liat Building up for collective sale at $1.15bn
Tan Boon Liat En bloc
The Tan Boon Liat Building has been launched for collective sale at S$1.15 billion, presenting a unique redevelopment opportunity in the heart of Outram Road. The Urban Redevelopment Authority (URA) is expected to support the rezoning of the freehold industrial site for residential use with commercial space, making this an attractive prospect for developers and investors.
Prime Location and Redevelopment Potential
Currently a 15-storey industrial building, Tan Boon Liat Building sits on a freehold site spanning approximately 175,655 sq ft. The proposed rezoning could significantly enhance the site’s development potential, allowing a 50% increase in the allowable gross floor area (GFA). If approved, the plot ratio would rise from 3.1 to 4.9, unlocking greater value for future developments.
The site is located in Outram, a sought-after district near Robertson Quay, Chinatown, and Tiong Bahru, making it an attractive location for a residential-commercial mixed-use project. The area’s accessibility, vibrant lifestyle, and proximity to key business hubs enhance its appeal for both homebuyers and investors.
URA’s Support for Rezoning
URA issued outline planning advice on January 22, following an eight-month site study, indicating that rezoning from Business 1 to residential with commercial use on the first storey may be supported, subject to compliance with urban design and planning regulations.
An outline application is a preliminary proposal that allows landowners and developers to assess the feasibility of changes in land use, plot ratio, or building height. The document remains valid for six months, giving potential buyers time to evaluate the site’s potential before making an investment decision.
Financial Considerations and Land Rate
For developers looking to redevelop Tan Boon Liat Building, the financial commitment extends beyond the S$1.15 billion reserve price. Additional costs include:
•Land Betterment Charge: Estimated at S$830 million to S$840 million for rezoning.
•Bonus GFA and Remnant Land Premiums: Further costs associated with optimizing the site’s full potential.
Taking these factors into account, the estimated land rate stands at S$1,888 per sq ft per plot ratio (psf ppr), positioning the site competitively within the core central region.
Why This Sale Matters
The en bloc sale of Tan Boon Liat Building reflects the growing interest in redevelopment opportunities within Singapore’s prime districts. If the rezoning is approved, the site could be transformed into a luxury residential development with retail and commercial spaces, further enhancing Outram’s urban landscape.
With Singapore’s property market continuing to evolve, developers and investors will be closely watching this sale as a benchmark for future mixed-use redevelopment projects.
Conclusion
The Tan Boon Liat Building en bloc sale represents a rare freehold redevelopment opportunity in Outram, with potential for a significant uplift in value through URA-supported rezoning. With its prime location, enhanced plot ratio, and potential for luxury mixed-use development, this site is expected to attract strong interest from developers seeking to tap into Singapore’s vibrant real estate market.