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Thread: International Plaza collective sale makes history with S$2.7b reserve price

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    Default International Plaza collective sale makes history with S$2.7b reserve price

    International Plaza to launch en bloc tender soon; multi-billion dollar tag would be Singapore's biggest collective sale

    Aug 06, 2021

    INTERNATIONAL Plaza will soon be put on the market via a collective sale tender, in what may potentially be Singapore's largest collective sale in history in terms of the number of units and value, sole marketing agent Edmund Tie & Company said on Friday.

    Owners with at least 80 per cent in both strata area and share value had given their consent for the first collective sale attempt, representing close to 800 units. The requisite owners' consent was obtained before the Aug 10 deadline.

    The reserve price was not disclosed in the Friday announcement. However, it was previously reported that International Plaza was looking to launch a collective sale in excess of S$2.6 billion back in 2018.

    Another property that has attempted a collective sale with a billion-dollar reserve price is Sim Lim Square, which launched a second collective sale in 2019 with a reserve price of S$1.25 billion.

    The 50-storey International Plaza has dual frontage along Anson Road and Choon Guan Street, occupying a "very strategic and prominent spot" in the Republic's central business district (CBD).

    It is also a stone's throw from Tanjong Pagar MRT station and located at the gateway to the Greater Southern Waterfront, Edmund Tie said.

    The development comprises 962 strata units ranging from shops, office units, residential apartments, a privately held car park and even a swimming pool - which is also a strata lot.

    It has a land area of about 0.7 hectare, which is zoned for commercial use under the Urban Redevelopment Authority's (URA) Master Plan 2019.

    The property's collective sale committee was formed in October 2018 and is advised by law firm Wee Swee Teow and Edmund Tie. The latter was appointed as the sole marketing agent in Q1 2019.

    Edmund Tie said the collective sale exercise was disrupted by "circuit-breaker" restrictions due to the Covid-19 pandemic in 2020. The Ministry of Law granted a six-month extension to the collective sale committee in February this year to obtain the requisite consent.

    Kevin Liang, chairman of the International Plaza collective sale committee expects keen interest from local and foreign developers and funds, given International Plaza's prime location in the CBD.

    Edmund Tie executive director of investment advisory Swee Shou Fern said the redevelopment of International Plaza is arguably the "last piece in the jigsaw puzzle" in the rejuvenation of the Tanjong Pagar precinct.

    "With the announcement of the CBD Incentive Scheme by URA in March 2020, we are beginning to witness the exciting transformation of the CBD into a lively live-work-play destination," Ms Swee said.

    Near International Plaza is mixed-use development Tanjong Pagar Centre - which comprises an office tower, retail podium, five-star hotel and luxury residential development.

    Surrounding properties AXA Tower and Fuji Xerox Towers will also be redeveloped into integrated developments.

  2. #2
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    Default Re: International Plaza to launch en bloc tender soon; multi-billion dollar tag would

    International Plaza collective sale makes history with S$2.7b reserve price

    Sep 01, 2021

    INTERNATIONAL Plaza has been put up for collective sale via tender with a reserve price of S$2.7 billion. If sold, it could become Singapore's largest collective sale in history in terms of the number of units and value.

    The launch comes weeks after sole marketing agent Edmund Tie first announced that it garnered requisite owners consent for the first attempt at a collective sale.

    It was previously reported in 2018 that owners were looking to launch the collective sale in excess of S$2.6 billion. This was before they were met with pandemic-related delays. (see amendment note)

    The final S$2.7 billion price tag translates to a land rate of S$2,448 per square foot per plot ratio (psf ppr) based on existing gross floor area (GFA).

    If the collective sale committee (CSC) gets approval for a 25 per cent intensification in gross floor area under the Central Business District (CBD) scheme, the land rate will work out to about S$2,170 psf ppr.

    The 50-storey International Plaza comprises 962 shop units, offices, apartments as well as a strata-titled carpark and a strata-titled swimming pool.

    The mixed-use development, which was completed in the 1970s, has an existing GFA of about 1.4 million square feet (sq ft) and an equivalent plot ratio of 19.24. It sits on a plot spanning 75,089 sq ft which is zoned for commercial use, at a plot ratio of 10.5 and building height control of up to 250 metres.

    International Plaza meets the three eligibility criteria to qualify for the CBD Incentive Scheme - building age, current land use and site area. Thus, the CSC has submitted an outline application to the Urban Redevelopment Authority (URA) for a 25 per cent intensification in GFA, based on "commercial with 40 per cent non-commercial uses such as residential".

    Swee Shou Fern, Edmund Tie's head and executive director of investment advisory, said International Plaza represents the last strategic corner plot with main road frontage at the gateway of the Tanjong Pagar precinct.

    The property's existing commercial zoning under the URA Master Plan 2019 also means there is no additional buyer's stamp duty payable for purchase, as well as no restriction on foreign ownership.

    The collective sale tender will close on Nov 30, 3pm.

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    Default Re: International Plaza collective sale makes history with S$2.7b reserve price

    International Plaza put up for collective sale with a record price tag of S$2.7 billion

    September 01, 2021

    • International Plaza, a mixed-use property, has an asking price of S$2.7 billion
    • At that price, it would be the largest en-bloc sale on record, both in terms of the number of units and total price
    • The building in Tanjong Pagar has 962 units of offices, shops and residences
    • Its collective sales committee has applied for a 25 per cent increase in gross floor area under URA’s CBD Incentive Scheme
    • A period of en-bloc fever had died in 2018 following new property cooling measures


    SINGAPORE — International Plaza in Tanjong Pagar was put up for collective sale at a reserve price of S$2.7 billion on Wednesday (Sept 1), its marketing agent Edmund Tie & Company said. If sold at that price, it would be double the previous record for an en-bloc sale in Singapore, either residential or commercial.

    This is the first en-bloc sale attempt for the 50-storey mixed-use property, in a prime Central Business District (CBD) location, comprising 962 shop units, offices, apartments as well as a car park and swimming pool. The 99-year leasehold property was completed in 1976.

    In a statement, the marketing agent suggested that the buyer may wish to redevelop the site into a “bold, iconic” new building.

    To that end, the collective sale committee of International Plaza has applied to the authorities for 25 per cent intensification of its current 134,260.93 sqm of gross floor area, the agent said.

    If approved, the site could be redeveloped with an enlarged gross floor area of 167,826.16 sqm.

    In July, the majority of the property’s owners — close to 800 out of the 962 units — had consented to the en-bloc sale before their Aug 10 deadline, though the reserve price was not disclosed then.

    Ms Swee Shou Fern, head and executive director of investment advisory at Edmund Tie, said that International Plaza offers “an exceptional redevelopment opportunity for the visionary developer to build a trophy integrated development in the vibrant Tanjong Pagar precinct within the CBD”.

    The property is located next to Tanjong Pagar MRT Station, and is connected to the Central Expressway, Marina Coastal Expressway and Ayer Rajah Expressway as well as other major arterial roads.

    “We envisage the new development to be one that is bold, iconic and innovative and will positively transform the urban landscape and fully embrace the elements of work, live and play,” Ms Swee said.

    The collective sale follows a March 2019 announcement of the CBD Incentive Scheme by the Urban Redevelopment Authority (URA) to rejuvenate the area as a round-the-clock mixed-use district.

    This is so that the “the CBD will not only be a place to work, but also a vibrant place to live and play in”, URA said then.

    Under this scheme, qualifying properties can intensify their gross floor area by between 25 and 30 per cent depending on the proposed land use as well as their location within selected parts of the CBD.

    The reserve price of S$2.7 billion works out to about S$2,448 per square foot (psf) per plot ratio based on the existing gross floor area.

    If the intensification is approved under the URA scheme, it will be about S$2,170 psf per plot ratio.

    Edmund Tie & Company said that the property’s commercial zoning under the Government's Master Plan 2019 also means that there is no Additional Buyer’s Stamp Duty payable for the purchase of the collective sale site. There will also be no restriction on foreign ownership.

    The tender closes on Nov 30 at 3pm.

    The sale announcement follows an increase to the development charge rates for landed and non-landed uses for the half-year period starting from Wednesday (Sept 1). Development charge rates for commercial uses were reduced for the same period.

    In 2017, 27 en-bloc residential deals were made totalling S$8.13 billion in value. The following year, there were 35 en-bloc residential deals, with sales totalling more than S$10.8 billion.

    That period of en-bloc fever came to a halt at the end of 2018 when property cooling measures by the authorities came into force, with the pandemic in 2020 likely to have scuppered plans for such sales to go ahead.

    There have been collective sales with high asking prices of more than S$2 billion in the past, though the deals did not materialise.

    The Mandarin Gardens condominium had a higher asking price of S$2.9 billion in 2019, but it did not proceed with its en-bloc sale because it failed to gather the requisite approval from owners.

    The collective sale record is held by the sale of Farrer Park condominium, which fetched S$1.34 billion in 2007. The condo has since been redeveloped into D’Leedon condo.

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    Default Re: International Plaza collective sale makes history with S$2.7b reserve price

    International Plaza fails to get URA's nod for CBD Incentive Scheme

    THE Urban Redevelopment Authority (URA) has turned down an outline application for the proposed redevelopment of International Plaza in Tanjong Pagar under the Central Business District (CBD) Incentive Scheme.

    The outcome is seen as having implications for the ongoing collective sale tender for the property, which has a S$2.7 billion reserve price; if achieved, this would be the highest for a collective sale. The tender closes on Nov 30.

    URA unveiled the scheme in 2019 to spur owners of older predominantly office buildings in specific parts of the CBD to redevelop their properties into mixed-use projects. Owners would be allowed to build more gross floor area (GFA) - beyond the plot ratio in Master Plan 2019 or the approved plot ratio, whichever is higher (plot ratio is the ratio of GFA to site area). The idea is to inject a live-in population, liven up the district in the evenings and on weekends and rejuvenate the CBD.

    When the tender for International Plaza was launched on Sep 1, its marketing agent Edmund Tie & Co said that the property meets the qualifying criteria for the scheme - in terms of building age, current land use and site area. When contacted, URA's spokesperson told The Business Times that the qualifying criteria provide a framework to guide the detailed evaluation, which will also factor in existing ground conditions and specific site context.

    In the case of International Plaza, it currently has a good mix of uses - ranging from residences to retail, food & beverage and personal services, in addition to offices. "Hence, even without redevelopment under the CBD Incentive Scheme, International Plaza is already in line with the planning intention, and is in fact functioning as an amenity centre for the area," she added.

    URA had also noted in early October, in its refusal of written permission for the outline application, that "unlike most mono-use office-centric developments in the CBD, International Plaza has a good mix of uses, including a significant residential component that occupies more than 20 per cent of the total building floor area". Moreover, the building intensity of the existing development, at 19.24 gross plot ratio, is "substantial and considerably higher than the surrounding developments" in Tanjong Pagar such as Guoco Tower, Twenty Anson and Springleaf Tower, said the spokesperson.

    "Taking these into consideration, we have assessed that the development is not eligible for the CBD Incentive Scheme," she added.

    The 45-year-old International Plaza's current 19.24 plot ratio - based on its nearly 1.45 million sq ft existing GFA - is nearly double the 10.5 plot ratio allocated for the commercial-zoned site under Master Plan 2019.

    Analysts say the implication of URA's decision on International Plaza's en bloc sale is that without the benefit of the additional 25 per cent GFA that would have been granted under the CBD Incentive Scheme, the reserve price reflects a higher land rate of about S$2,448 per square foot per plot ratio (psf ppr); this is based on the existing GFA.

    The land rate would be S$2,170 psf ppr had the URA given its nod to the proposed outline application submitted by Edmund Tie on behalf of International Plaza's collective sale committee.

    Both land rate figures are inclusive of payment to the state to top up the site's lease to 99 years (from the current balance of around 47.5 years) - and, if applicable, a differential premium for intensification and/or change or use.

    Karamjit Singh, chief executive of property investment sales specialist Delasa, said that applications by building owners for the CBD Incentive Scheme "do unfortunately come with risks of refusal, which we reckon the owners would have considered when applying".

    He added: "Also, the scheme is targeted at old, predominantly office buildings. With that, International Plaza's case would have always been borderline given its existing residential component."

    While some observers were surprised by URA's decision, they do not expect wider implications for other office buildings that qualify for the CBD Incentive Scheme. "International Plaza is unique in that it's massive, built well over Master Plan, and it has a reasonably-sized residential component," said Singh.

    Standing next to Tanjong Pagar MRT Station, the 50-storey development is on a site released under URA's third sale of sites, back in 1969.

    Tan Hong Boon, executive director of capital markets at property consulting group JLL, said: "There are many buildings in the CBD with existing GFA reflecting an equivalent plot ratio similar to or higher than what's specified in Master Plan 2019 but the difference is not to the extent as what we see at International Plaza. Also, these buildings comprise predominantly offices."

    The outline application submitted for International Plaza's proposed redevelopment under the URA scheme was based on "commercial use with 40 per cent non-commercial uses such as residential".

    The proposal envisaged a 280-metre high, 62-storey project with 24.05 plot ratio (1.8 million sq ft GFA) comprising 175 strata retail units and 698 strata office units (for the 60 per cent commercial component); 778 strata apartments (30 per cent residential component); and a 368-room hotel (10 per cent) .

    In turning down the application, URA also issued advice on alternative development options and stipulated the planning guidelines and parameters for the site. The allowable intensity remains at the existing 19.24 plot ratio. Based on commercial land use, the project's residential quantum should at least match the existing residential quantum on site, at 326,808 sq ft (excluding any bonus GFA). There will be no further increase in the office quantum, which will be capped at 945,737 sq ft in the new project. The project's overall height control is 250 metres.

    For the commercial component, strata subdivision is allowed only to delineate between the various uses, for example, retail and offices; there shall be no strata subdivision into individual commercial units (as proposed in the outline application).

    This is to ensure that the property continues to be well-maintained and managed under a common and co-ordinated ownership, said the URA spokesperson. "URA has restricted strata subdivision of the commercial component of private-sector redevelopment proposals on prominent sites, as the upkeep of these properties is important to the overall image of the area. International Plaza occupies prominent frontage along Anson Road, a key corridor in the CBD."

    Given the planning intention to introduce a greater mix of uses in the CBD and encourage more residential spaces in the Central Area, the URA suggested that the owners may wish to consider alternative land-use zonings such as commercial and residential (at least 60 per cent of GFA has to be for residential and up to 40 per cent for commercial use).

    https://www.businesstimes.com.sg/rea...centive-scheme
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    If you lose Money it because you sell on a wrong Day.

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    You don't Buy others will Buy.
    You don't Sell, others will Sell.

  5. #5
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    Default Re: International Plaza collective sale makes history with S$2.7b reserve price

    Quote Originally Posted by Arcachon View Post
    International Plaza fails to get URA's nod for CBD Incentive Scheme

    THE Urban Redevelopment Authority (URA) has turned down an outline application for the proposed redevelopment of International Plaza in Tanjong Pagar under the Central Business District (CBD) Incentive Scheme.

    The outcome is seen as having implications for the ongoing collective sale tender for the property, which has a S$2.7 billion reserve price; if achieved, this would be the highest for a collective sale. The tender closes on Nov 30.

    URA unveiled the scheme in 2019 to spur owners of older predominantly office buildings in specific parts of the CBD to redevelop their properties into mixed-use projects. Owners would be allowed to build more gross floor area (GFA) - beyond the plot ratio in Master Plan 2019 or the approved plot ratio, whichever is higher (plot ratio is the ratio of GFA to site area). The idea is to inject a live-in population, liven up the district in the evenings and on weekends and rejuvenate the CBD.

    When the tender for International Plaza was launched on Sep 1, its marketing agent Edmund Tie & Co said that the property meets the qualifying criteria for the scheme - in terms of building age, current land use and site area. When contacted, URA's spokesperson told The Business Times that the qualifying criteria provide a framework to guide the detailed evaluation, which will also factor in existing ground conditions and specific site context.

    In the case of International Plaza, it currently has a good mix of uses - ranging from residences to retail, food & beverage and personal services, in addition to offices. "Hence, even without redevelopment under the CBD Incentive Scheme, International Plaza is already in line with the planning intention, and is in fact functioning as an amenity centre for the area," she added.

    URA had also noted in early October, in its refusal of written permission for the outline application, that "unlike most mono-use office-centric developments in the CBD, International Plaza has a good mix of uses, including a significant residential component that occupies more than 20 per cent of the total building floor area". Moreover, the building intensity of the existing development, at 19.24 gross plot ratio, is "substantial and considerably higher than the surrounding developments" in Tanjong Pagar such as Guoco Tower, Twenty Anson and Springleaf Tower, said the spokesperson.

    "Taking these into consideration, we have assessed that the development is not eligible for the CBD Incentive Scheme," she added.

    The 45-year-old International Plaza's current 19.24 plot ratio - based on its nearly 1.45 million sq ft existing GFA - is nearly double the 10.5 plot ratio allocated for the commercial-zoned site under Master Plan 2019.

    Analysts say the implication of URA's decision on International Plaza's en bloc sale is that without the benefit of the additional 25 per cent GFA that would have been granted under the CBD Incentive Scheme, the reserve price reflects a higher land rate of about S$2,448 per square foot per plot ratio (psf ppr); this is based on the existing GFA.

    The land rate would be S$2,170 psf ppr had the URA given its nod to the proposed outline application submitted by Edmund Tie on behalf of International Plaza's collective sale committee.

    Both land rate figures are inclusive of payment to the state to top up the site's lease to 99 years (from the current balance of around 47.5 years) - and, if applicable, a differential premium for intensification and/or change or use.

    Karamjit Singh, chief executive of property investment sales specialist Delasa, said that applications by building owners for the CBD Incentive Scheme "do unfortunately come with risks of refusal, which we reckon the owners would have considered when applying".

    He added: "Also, the scheme is targeted at old, predominantly office buildings. With that, International Plaza's case would have always been borderline given its existing residential component."

    While some observers were surprised by URA's decision, they do not expect wider implications for other office buildings that qualify for the CBD Incentive Scheme. "International Plaza is unique in that it's massive, built well over Master Plan, and it has a reasonably-sized residential component," said Singh.

    Standing next to Tanjong Pagar MRT Station, the 50-storey development is on a site released under URA's third sale of sites, back in 1969.

    Tan Hong Boon, executive director of capital markets at property consulting group JLL, said: "There are many buildings in the CBD with existing GFA reflecting an equivalent plot ratio similar to or higher than what's specified in Master Plan 2019 but the difference is not to the extent as what we see at International Plaza. Also, these buildings comprise predominantly offices."

    The outline application submitted for International Plaza's proposed redevelopment under the URA scheme was based on "commercial use with 40 per cent non-commercial uses such as residential".

    The proposal envisaged a 280-metre high, 62-storey project with 24.05 plot ratio (1.8 million sq ft GFA) comprising 175 strata retail units and 698 strata office units (for the 60 per cent commercial component); 778 strata apartments (30 per cent residential component); and a 368-room hotel (10 per cent) .

    In turning down the application, URA also issued advice on alternative development options and stipulated the planning guidelines and parameters for the site. The allowable intensity remains at the existing 19.24 plot ratio. Based on commercial land use, the project's residential quantum should at least match the existing residential quantum on site, at 326,808 sq ft (excluding any bonus GFA). There will be no further increase in the office quantum, which will be capped at 945,737 sq ft in the new project. The project's overall height control is 250 metres.

    For the commercial component, strata subdivision is allowed only to delineate between the various uses, for example, retail and offices; there shall be no strata subdivision into individual commercial units (as proposed in the outline application).

    This is to ensure that the property continues to be well-maintained and managed under a common and co-ordinated ownership, said the URA spokesperson. "URA has restricted strata subdivision of the commercial component of private-sector redevelopment proposals on prominent sites, as the upkeep of these properties is important to the overall image of the area. International Plaza occupies prominent frontage along Anson Road, a key corridor in the CBD."

    Given the planning intention to introduce a greater mix of uses in the CBD and encourage more residential spaces in the Central Area, the URA suggested that the owners may wish to consider alternative land-use zonings such as commercial and residential (at least 60 per cent of GFA has to be for residential and up to 40 per cent for commercial use).

    https://www.businesstimes.com.sg/rea...centive-scheme

    For those enbloc hopefuls....my advise is do not speculate in enbloc. Buy what you can stay and hold. Enbloc property prices drop fast and almost immediate when it failed.

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