SINGAPORE – International Plaza’s proposal for a 62-storey mixed-use project, including a 368-room hotel, in Tanjong Pagar has hit a roadblock after the authorities rejected an outline application for its proposed redevelopment under the Central Business District (CBD) Incentive Scheme.
This came after the Urban Redevelopment Authority (URA) found that the 50-storey property “currently has a good mix of uses, ranging from residences to retail, food and 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,” a spokesman for URA said.
The CBD Incentive Scheme is aimed at encouraging the conversion of older and predominantly office developments within the CBD into mixed-use buildings.
In its refusal of written permission on Oct 4, URA noted 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”.
Furthermore, 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.
“As such, we have assessed that the development is not eligible for the CBD Incentive Scheme,” said URA.
The spokesman added: “URA evaluates development applications based on the unique context and attributes of each site, regardless of whether or not it is an en bloc project.”
Market observers say the URA’s decision could have implications for potentially the largest collective sale deal here to date.
Without the additional 25 per cent gross floor area that would have been granted under the scheme, International Plaza’s reserve price of $2.7 billion – a record if achieved – reflects a land rate of $2,440 per sq ft per plot ratio (psf ppr), inclusive of the premium to top up the site’s lease to 99 years. The property has about 48 years left on the lease.
Had the 25 per cent intensification in gross plot ratio been approved, the land rate would have been $2,170 psf ppr.
But this land rate is still significantly higher than that of a white site in Marina View that was awarded to its sole bidder – a unit of Malaysia’s IOI Properties Group – at $1.508 billion in September.
That works out to a land rate of $1,379 psf ppr for the Government Land Sales site, which is intended for a mixed-use development with residential, hotel and commercial units and/or serviced apartments.
International Plaza had applied to increase the gross floor area by 25 per cent, with 60 per cent of the development gross floor area earmarked for commercial use and 40 per cent for apartments and a hotel.
It had proposed a 280m-high, 62-storey project with a 24.05 plot ratio comprising 175 strata retail units and 698 strata office units; 778 strata apartments; and a 368-room hotel.
But URA, in its October decision, suggested alternative development options and issued planning guidelines.
“The project’s residential quantum should at least match the existing residential quantum on site, at 30,361.52 sq m (excluding any bonus gross floor area). There will be no further increase in the office quantum, which will be capped at 87,861.96 sq m in the new project,” URA said.
The project’s overall height control remains at 250m.
Ms Swee Shou Fern, executive director of investment advisory at real estate consulting firm Edmund Tie, told The Straits Times that the “allowable intensity remains at the existing gross plot ratio of 19.24”.
“The office quantum is capped at 87,861.96 sq m, or 65.4 per cent of the new development,” she added.
Mr Tan Hong Boon, executive director of capital markets at property consulting group JLL, noted that International Plaza’s current built-up plot ratio of 19.24 is “almost double the plot ratio of 10.5 in Master Plan 2019”.
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