Singapore’s collective sales process is about to enter uncharted territory, with architectural landmark Golden Mile Complex launching the first public tender of its building while being studied for possible conservation.
Completed in 1973, the building, considered an icon of urbanism with a signature step-terraced design, has 49 years left on its lease and is being launched at a reserve price of $800 million.
DP Architects, the firm which designed Golden Mile Complex in the 1960s, has been appointed consultant architect for the en bloc site.
Ms Swee Shou Fern, senior director of investment advisory of Edmund Tie & Company, the marketing agent, said the Urban Redevelopment Authority (URA) first told them of the conservation study at a consultation before they submitted a planning application to the authorities.
The application to retain the existing 16-storey building, with the addition of a new block next to it, was submitted two months ago, and is subject to the authorities’ approval.
“Golden Mile Complex is a national icon. The new (building) will be an essential part of the rejuvenation of the Beach Road corridor, and we are working closely with DP Architects and URA on conservation of the building and ways to enhance its potential,” she said.
“The collective sale of a large-scale conserved building in Singapore is unprecedented and we will be conducting a longer tender process to allow interested parties to carry out a detailed study,” she added.
The 718-unit building sits on a 1.3ha land area and is zoned for commercial use.
A URA spokesman said yesterday that it has assessed the building to “have heritage value, and is engaging the stakeholders to explore options to facilitate conservation”.
“We are unable to share further details as discussions are ongoing,” he said.
“Modern architecture is a significant aspect of our built heritage, and we have selectively conserved a number of such buildings. Where there is strong support and merits for conservation, we will work with the relevant stakeholders to facilitate the process,” he added.
But some analysts believe that “going for conservation status” may reduce the en bloc site’s sale value.
The commercial sector currently seems more appealing to developers as commercial properties remain unaffected by July’s cooling measures, which have taken a toll on residential en bloc sales.
“But conservation complicates matters because the cost variables and net sellable area are now less certain. The developer has to find out what needs to be conserved and figure out the costs of building within the constraints,” Savills Singapore senior director of research and consultancy Alan Cheong said.
International Property Advisor chief executive Ku Swee Yong believes developers may try to press for a lower price to accommodate possible higher construction costs.
With a guide price of $800 million, the 68 residential owners stand to get a gross payout of between $1.27 million and $6 million each, while the 418 shop units can get between $200,000 and $7 million each. Owners of the 227 office units stand to get between $360,000 and $3 million each.
The differential premium and lease upgrading premium to intensify the land use and to top up the lease to 99 years respectively will depend on the developer’s proposed land use mix.
The tender exercise will close on Jan 30 at 3 pm.
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