Singapore International Plaza Tower On Market For $2B

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International Plaza in Tanjong Pagar, Singapore’s largest collective sale in terms of number of units and value, has been launched for sale by public tender at a reserve price of S$2.7 billion ($2 billion). This comes after more than 80 percent of the owners, by both share value and strata area, agreed on 7 July to put the 50-storey leasehold commercial-with-residential building — one of Singapore’s biggest integrated developments — on the market for the first time. The sale could be Singapore's largest en-bloc deal in terms of number of units and value and comes after the owners gave the green light on July 7 to put the 50-storey leasehold building on the market. The reserve price of the commercial and residential block works out to a land rate of $2,448 per square foot per plot ratio, marketing agent Edmund Tie told on 1st September. If the 25 per cent intensification in gross plot ratio is approved, the land rate will work out to about $2,170 per square foot per plot ratio. The biggest collective sale in dollar terms up to now has been the $1.34 billion Farrer Court deal sealed in 2007. International Plaza - one of Singapore's biggest integrated developments - was built in the 1970s and comprises 209 apartments, 559 office units, 192 strata shops, a carpark and a swimming pool on the 36th floor. The property's commercial zoning means a developer need not pay Additional Buyer's Stamp Duty and foreign buyers can keep the land. The tender closes at 3pm on Nov 30. The property, which is zoned for commercial use with height control of up to 250 metres, sits on a land area of about 6,976 sq m (75,089 sq ft) with 48 years left on the lease. It was developed by the Cheong family, who are related to the Cheongs who control Singapore-listed Hong Fok Corp. International Plaza meets the criteria to qualify for the Central Business District Incentive Scheme, which allows properties to have their gross floor area increased by 25 to 30 per cent depending on the proposed land use. It has applied to the Urban Redevelopment Authority 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 non-commercial such as apartments and a hotel. If approved, the site can be redeveloped with a gross floor area of 167,826.16 sq m (1,806,464 sq ft) or an equivalent plot ratio of 24.06.