URA proposes to conserve Golden Mile Complex, offers incentives for redevelopment

• URA to offer financial incentives for developers interested to bid for the Golden Mile Complex site
• Two previous launches of collective sale of the site ended without any bids
• Incentives include a one-third increase in floor area and waivers of part of the development charge
• Heritage advocates lauded the conservation move, while property analysts said the incentives are “deal-sweeteners”

SINGAPORE — The Golden Mile Complex will be proposed for conservation in view of its historical and architectural significance, the Urban Redevelopment Authority (URA) said on Friday (Oct 9), as it concurrently unveiled incentives to make the site more attractive for developers eyeing a collective sale.

These planning incentives, which do not apply to many other en bloc sales, include a one-third increase in floor area and waivers of part of the development charge, which is a tax imposed when buyers increase the value of the site either through re-zoning or increased plot use.

Developers have shunned the site in the last two tenders — which had an asking price of S$800m million — over the last two years, primarily because URA's planning advice for the Beach Road site had stated that the main building is subject to conservation.

The 16-storey building, which has 48 years left on its lease, was one of the earliest government land sale sites as well as one of the first large mixed-use developments in Singapore that integrated commercial, recreational and residential uses in a single building, URA said.

In a statement on Friday announcing its unusual move of the planning incentives, the authority said: “While there is strong support for the historical and architectural merits of Golden Mile Complex, building owners raised concerns over how conservation requirements could impact plans for a collective sale, especially given the associated building maintenance costs and design constraints.

“Developers also (said there are) uncertainties surrounding the local property market’s reception to purchasing a large-scale strata-titled conserved development.”

Key features of the building that needs to be retained would include the signature terraced profile and the atrium on the opposite side. However, the building can be restored and adapted for new uses.

The multi-storey car park beside the building can be torn down and redeveloped into a 30-storey tower that is equivalent to the one-third increase in floor area.

To make the development of the 1.3ha land site — which has a gross floor area of 50,085 sqm — more attractive, developers will be able to adjust the site boundary to a regular shape.

The partial waiver of the development charge, capped at 10 per cent of either the estimated land value of the development or the transacted value, applies to the bonus floor area that developers may build if they do win the bid for the site.

As with all redevelopment of conserved buildings, developers will be able to top up the site's lease to a fresh 99 years, and the development charge incurred when developers increase the value of the conserved gross floor area will be waived. 

Besides the incentives offered, URA also said that it is prepared to work closely with owners and industry experts to discuss the possible ways that the building can be adapted and reused while keeping within the conservation requirements.

“Golden Mile Complex is a symbol of the architectural and engineering ingenuity of Singapore’s pioneer generation of building professionals, and encapsulates the people’s bold vision and imagination for vibrant, inclusive and high-rise living during Singapore’s nation building days,” it said.

“The building continues to be a distinctive landmark and symbol of Singaporeans’ collective memories and the ‘can-do spirit’ of our pioneer generation during the post-independence years.”

TWO-YEAR STUDY

URA decided to conserve the site after a two-year study that involved engaging diverse groups of stakeholders including heritage groups, developers and current owners.

An example of modernist architecture since the early years of post-independent Singapore, Golden Mile Complex was designed by Singapore architects from Design Partnership and built by Singapore developer Woh Hup in 1973.

If the proposal to conserve Golden Mile Complex is approved and it is eventually gazetted as a conservation building down the line, it will join more than 7,200 heritage buildings that have been conserved islandwide. 

However, it will be the first large-scale strata-titled building in the private sector to be gazetted for conservation. 

'WITHOUT PRECEDENT'

Heritage advocates lauded the decision to conserve the complex. They have been pushing for it to be conserved for several years even before it was put up for tender twice over the last two years. 

Dr Yeo Kang Shua, an architecture professor at the Singapore University of Technology and Design, called the move by URA “without any precedent”. 

He believes that the successful adaptation of Golden Mile Complex for modern use would make it a model for future conservation projects. It is a more sustainable way of maintaining Singapore’s built environment, instead of constantly tearing down and building new ones. 

“A lot of people think conservation is expensive. We need to dispel that (thinking). Conservation doesn’t mean it’s a hindrance to progress,” Dr Yeo said. 

Dr Jack Lee, president of the Singapore Heritage Society, said that there would be a big gap in Singapore’s architectural history if only old colonial buildings are preserved. 

Golden Mile Complex represents a particular type of building and architectural style characteristic of Singapore’s post-independence era, he added.

Property analysts, however, said that the incentives doled out by URA for developers may not be enough to tempt them given the Covid-19 crisis.  

Mr Desmond Sim, head of research for Southeast Asia for property consultancy CBRE, said that the incentives are more of a “deal sweetener”, instead of a “dealbreaker or dealmaker”. 

“The main driver is still dollars and cents,” he said.

The partial waiver of the development charge, though it would help to reduce costs, would not amount to much, because it would probably come in at less than S$1 million, Mr Sim said.

Even then, he called this a “multi-win” initiative because the private sector would have the opportunity to partake in the urban redevelopment of Singapore. 

Mr Alan Cheong, executive director of research and consultancy at real estate service provider Savills, said that the incentives might have swayed developers in a pre-Covid-19 environment. 

Now, the uncertainties thrown up by the pandemic will affect how developers plan their land acquisition strategies. 

TODAY had previously reported that there had been no successful collective sale of residential sites in Singapore since the pandemic started.