International Plaza has been put up for collective sale at a reserve price of S$2.7 billion, marketing agency Edmund Tie & Company stated on Wednesday (Sep 1).
The 50-storey mixed-use development’s first effort at an en bloc sale is also its most expensive and comprehensive offering to date.
A land rate of S$2,448 per square foot per plot ratio is reflected in the reserve price.
International Plaza, which was completed in the 1970s, has 962 retail spaces, office spaces, residences, a strata-titled parking garage, and a strata-titled swimming pool. Its total land area is greater than 75,000 square feet.
Since 2018, the development’s owners have been pursuing a collective sale, but the COVID-19 outbreak has delayed that process.
The Central Business District (CBD) Incentive was introduced by the Urban Redevelopment Authorities (URA) in March 2019. Its goal is to revitalize the CBD and transform it into a mixed-use area where people can live, work, and play.
According to a press statement from Edmund Tie & Company, International Plaza satisfies the three qualifying requirements for the program in terms of building age, current land use, and site area.
Therefore, on the advice of Edmund Tie & Company, the collective sale committee of International Plaza has submitted to URA an outline application to apply for a 25% increase in gross floor area based on “Commercial use with 40% non-commercial uses such as Residential,” according to the marketing agent.
The property can be rebuilt at a gross floor area of 167,826.16 sq m (about 1,806,464 sq ft) or an equal plot ratio of 24.06 if the proposal is accepted.
According to Swee Shou Fern, head and executive director of investment advising at Edmund Tie & Company, “the land rate will come out to about S$2,170 psf ppr if the 25% intensification in gross plot ratio is authorized.”
She said, “International Plaza offers the final important corner site with main road frontage at the gateway to the Tanjong Pagar area. It is prominently placed at the intersection of Anson Road and Choon Guan Street.
Due to International Plaza’s commercial zoning, developers won’t be required to pay the Additional Buyer’s Stamp Duty.
The tender exercise will expire at 3pm on November 30.