Golden Mile Tower to be launched for en bloc sale at indicative price of S$650m

The impending tender follows the successful collective sale of neighbouring Golden Mile Complex earlier this year

Nov 14, 2022

FURTHER revitalisation of the Beach Road area could be on the cards with Golden Mile Tower set to be launched for collective sale on Nov 18 at an indicative price of S$650 million.

Located at 6001 Beach Road, the 99-year leasehold commercial development sits next to the iconic Golden Mile Complex, which was itself successfully sold en bloc in May to a consortium comprising Far East Organization, Perennial Holdings and Sino Land for S$700 million.

Golden Mile Tower has a plot size of 8,727 square metres (sq m) and a gross floor area (GFA) of 38,953.7 sq m. With a plot ratio of 4.46, the asking price of S$650 million for the site translates to S$1,550 per square foot per plot ratio.

Based on the 2019 Master Plan, the 22-storey building is zoned for commercial use, so buyers are not subject to the additional buyer’s stamp duty and there are no restrictions on foreign ownership.

Golden Mile Tower comprises 405 strata lots, with a total of 251 retail units, 152 office units, a cinema and a carpark. It currently has a leasehold balance of 46 years.

Although there were reports of the building’s owners forming a collective sale committee in 2018, Anna Tan, senior division director at ERA, who is handling the sale, told The Business Times (BT) that this is its first successful attempt at going on the market. Consent of the required 80 per cent of owners in both strata area and share values was obtained in mid-October and an owners’ meeting will be held on Nov 16.

Developed as part of urban renewal

Situated between Nicoll Highway and Beach Road, the District 7 property was completed in 1974, one year after its sister building, Golden Mile Complex. Both were developed as Singapore was undergoing urban renewal and were part of the government’s first Land Sales Programme beginning in 1967, where land parcels were offered for sale on 99-year leases.

Last year, the 16-storey Golden Mile Complex, with its distinct terraced facade, became the first modern, large-scale strata-titled development to be gazetted for conservation for its historical and architectural significance. It currently has a GFA of 56,000 sq m. Including the bonus floor area and adjoining state land, the site has a maximum GFA of around 81,000 sq m, with the option to build a new tower of about 30 storeys beside the main building.

At 13,000 sq m, Golden Mile Complex’s land size is larger than Golden Mile Tower’s, but both enjoy a long frontage along Nicoll Highway, facing the Kallang Basin with panoramic bay and sea views.

Architecturally and historically significant

Like its more famous neighbour, to which it is connected via an underpass, Golden Mile Tower was constructed in the Brutalist style, an architectural style characterised by block-like, massive concrete structures that was popular from the 1950s up till the 1980s.

Designed by Goh Hock Guan and his team, the building has a striking spiral staircase that is frequently featured on Instagram. What is less known is that the late Goh was a colourful Malaysian politician and founding secretary-general of the Democratic Action Party, and is said to have been a close friend of Singapore’s founding father Lee Kuan Yew.

He also designed Mid Valley Megamall in Kuala Lumpur and Sunway Pyramid in Subang Jaya. As well, he did the town planning for major cities such as Subang Jaya and Putrajaya and the Kuala Lumpur International Airport.

Golden Mile Tower once housed the largest cinema in Singapore and Malaysia, Golden Theatre, with 1,500 seats. In 2014, the theatre’s upper floor was taken over by Singapore’s first independent cinema, The Projector, which screens arthouse flicks and works by local filmmakers.

When BT visited on a rainy Saturday afternoon (Nov 12), most of its shops appeared to be permanently shuttered. The rest is a hotchpotch of eateries, bars, nightclubs and small businesses involved in everything from philately and dressmaking to vintage items, Buddhist amulets and Syrian hamsters.
Beach Road rejuvenation

Data from the Urban Redevelopment Authority show that from January 2018 to Nov 12, there were 17 transactions of retail units ranging from S$1,134 per square foot (psf) to S$2,374 psf, and nine transactions of office units at S$1,202 psf to S$2,019 psf.

“Golden Mile Tower is a nostalgic piece of Singapore’s history and because it is conveniently located along the city fringe, the property has high potential for redevelopment and use of site,” said Tan. “We expect keen interest from developers and buyers and look forward to a positive outcome.”

She noted that the Beach Road area has undergone rejuvenation in recent years, with the completion of new projects such as mixed-use developments Duo and City Gate, as well as upcoming ones like Midtown Bay and The M Condo.

Golden Mile Tower is within walking distance of the Nicoll Highway, Lavender and Bugis MRT stations and near major expressways. In the vicinity are malls such as Bugis Junction and Suntec City, as well as the Kampong Glam heritage precinct.

With legal completion for Golden Mile Complex’s sale scheduled for this month and vacant possession of the development to be handed to its buyers in May 2023, Golden Mile Tower will probably see a surge of curious visitors before it possibly heads the same way.

https://www.businesstimes.com.sg/rea...price-of-s650m