Tan Boon Liat Building’s $1.15 Billion Collective Sale Closes Without Bids, Moves to Private Negotiations
High-Profile Freehold Site Seeks Buyer Amid Rezoning Potential
The highly anticipated collective sale of Tan Boon Liat Building has closed with no bids at its reserve price of S$1.15 billion, shifting the sale process into a 10-week private treaty period, according to marketing agent Cushman & Wakefield.
While no formal offers were received during the tender closing on March 18, sources indicate that several parties have expressed interest, prompting ongoing negotiations.
URA Encourages Rezoning to Unlock Development Potential
A key factor in the site’s potential redevelopment is guidance from the Urban Redevelopment Authority (URA). The agency has suggested that building owners consider rezoning the site from Business 1 (industrial) to residential use with commercial space on the first storey. Additionally, URA has indicated that the plot ratio could be increased from 3.1 to 4.9, significantly boosting the site’s development potential.
If approved, this rezoning could provide a massive 50% increase in the allowable gross floor area (GFA), making the site an attractive investment for developers eyeing residential mixed-use projects.
Land Betterment Charge and Total Acquisition Cost
Cushman & Wakefield estimates that the land betterment charge for the rezoning and additional GFA would range between S$830 million and S$840 million. Factoring this into the land price, the total land cost would reach S$1,888 per square foot per plot ratio (psf ppr).
When combined with other associated acquisition costs, the effective purchase cost for the site could rise to nearly S$1.99 billion—a significant investment requiring careful evaluation by potential buyers.
Potential for Larger Site Through Amalgamation
According to an outline planning advice document reviewed by The Business Times, URA has indicated that rezoning the site may be supported, provided the developer adheres to planning and urban design requirements.
One advantage for future developers is the possibility of amalgamating adjacent state land parcels, allowing the creation of a larger integrated development. If combined, the total GFA could exceed 1,055,399 sq ft, including bonus GFA allocations.
Prime Location Near Havelock MRT and Major Developments
Well known among furniture and home décor shoppers, Tan Boon Liat Building is strategically located next to Havelock MRT station. The site spans approximately 175,655 sq ft, making it one of the most sizable freehold redevelopment opportunities available in the area.
With its prime location and proposed rezoning, the site could become a major mixed-use development, complementing nearby luxury residential projects such as Zion Road Condo, River Green, and One Marina Gardens.
Future Development Plans: Residential, Commercial, and Serviced Apartments
Under the proposed rezoning scheme, the future developer would be permitted to build:
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Up to 1,500 sq m of commercial space on the first floor
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At least 15,000 sq m allocated for long-term serviced apartments
This blend of residential, retail, and serviced apartment components could attract both investors and end-users, enhancing the precinct’s appeal as a vibrant, well-connected urban hub.
What’s Next for Tan Boon Liat Building?
As negotiations continue in the private treaty period, all eyes will be on whether a buyer steps forward to capitalize on the site’s redevelopment potential. With URA’s rezoning recommendations, proximity to MRT connectivity, and the possibility of site expansion, Tan Boon Liat Building presents a rare and valuable opportunity for developers looking to create the next landmark project in Singapore’s prime city fringe.
Stay tuned for updates as the sale progresses.
