Sultan Plaza up for collective sale at $380m
The owners of Sultan Plaza commercial building along Jalan Sultan have launched a public tender for a collective sale with a reserve price of $380 million.
The 99-year leasehold development, which was built in the 1970s, sits on 52,471 sq ft of prime land that is zoned for commercial use.
The maximum permissible gross floor area can be redeveloped to 283,803 sq ft, referenced against the 5.30 gross plot ratio of neighbouring City Gate and subject to regulatory approval.
Based on that estimate, the reserve price represents a land rate of about $1,860 per sq ft per plot ratio (psf ppr), inclusive of development charge and differential premium payable.
Sultan Plaza comprises 244 units. It sits between Beach Road and North Bridge Road, near the Kampong Glam conservation enclave.
"We have already received strong interest from local and overseas developers even prior to our tender launch, given Sultan Plaza's choice location," said Mr Jeremy Chiu, director of investment sales at ERA Realty Network, the agent for the sale.
In another collective sale, owners of Newton Lodge, a 16-unit apartment block in Newton Road, have put their freehold 21,409 sq ft site up for tender at a minimum price of $44 million.
This translates to a land rate of $1,468 psf ppr at a 1.4 gross plot ratio, said the property's sole marketing agent JLL.
Factoring in an additional 8 per cent bonus gross floor area for balconies and communal areas, the land rate drops to about $1,359 psf ppr.
Development charges are not payable for the site's redevelopment. - THE STRAITS TIMES