International Plaza put up for collective sale with a record price tag of S$2.7 billion

• International Plaza, a mixed-use property, has an asking price of S$2.7 billion
• At that price, it would be the largest en-bloc sale on record, both in terms of the number of units and total price
• The building in Tanjong Pagar has 962 units of offices, shops and residences
• Its collective sales committee has applied for a 25 per cent increase in gross floor area under URA’s CBD Incentive Scheme
• A period of en-bloc fever had died in 2018 following new property cooling measures

SINGAPORE — International Plaza in Tanjong Pagar was put up for collective sale at a reserve price of S$2.7 billion on Wednesday (Sept 1), its marketing agent Edmund Tie & Company said. If sold at that price, it would be double the previous record for an en-bloc sale in Singapore, either residential or commercial.

This is the first en-bloc sale attempt for the 50-storey mixed-use property, in a prime Central Business District (CBD) location, comprising 962 shop units, offices, apartments as well as a car park and swimming pool. The 99-year leasehold property was completed in 1976.

In a statement, the marketing agent suggested that the buyer may wish to redevelop the site into a “bold, iconic” new building.

To that end, the collective sale committee of International Plaza has applied to the authorities for 25 per cent intensification of its current 134,260.93 sqm of gross floor area, the agent said.

If approved, the site could be redeveloped with an enlarged gross floor area of 167,826.16 sqm.

In July, the majority of the property’s owners — close to 800 out of the 962 units — had consented to the en-bloc sale before their Aug 10 deadline, though the reserve price was not disclosed then.

Ms Swee Shou Fern, head and executive director of investment advisory at Edmund Tie, said that International Plaza offers “an exceptional redevelopment opportunity for the visionary developer to build a trophy integrated development in the vibrant Tanjong Pagar precinct within the CBD”.

The property is located next to Tanjong Pagar MRT Station, and is connected to the Central Expressway, Marina Coastal Expressway and Ayer Rajah Expressway as well as other major arterial roads.

“We envisage the new development to be one that is bold, iconic and innovative and will positively transform the urban landscape and fully embrace the elements of work, live and play,” Ms Swee said.

The collective sale follows a March 2019 announcement of the CBD Incentive Scheme by the Urban Redevelopment Authority (URA) to rejuvenate the area as a round-the-clock mixed-use district.

This is so that the “the CBD will not only be a place to work, but also a vibrant place to live and play in”, URA said then.

Under this scheme, qualifying properties can intensify their gross floor area by between 25 and 30 per cent depending on the proposed land use as well as their location within selected parts of the CBD.

The reserve price of S$2.7 billion works out to about S$2,448 per square foot (psf) per plot ratio based on the existing gross floor area.

If the intensification is approved under the URA scheme, it will be about S$2,170 psf per plot ratio.

Edmund Tie & Company said that the property’s commercial zoning under the Government's Master Plan 2019 also means that there is no Additional Buyer’s Stamp Duty payable for the purchase of the collective sale site. There will also be no restriction on foreign ownership.

The tender closes on Nov 30 at 3pm.

The sale announcement follows an increase to the development charge rates for landed and non-landed uses for the half-year period starting from Wednesday (Sept 1). Development charge rates for commercial uses were reduced for the same period.

In 2017, 27 en-bloc residential deals were made totalling S$8.13 billion in value. The following year, there were 35 en-bloc residential deals, with sales totalling more than S$10.8 billion.

That period of en-bloc fever came to a halt at the end of 2018 when property cooling measures by the authorities came into force, with the pandemic in 2020 likely to have scuppered plans for such sales to go ahead.

There have been collective sales with high asking prices of more than S$2 billion in the past, though the deals did not materialise.

The Mandarin Gardens condominium had a higher asking price of S$2.9 billion in 2019, but it did not proceed with its en-bloc sale because it failed to gather the requisite approval from owners.

The collective sale record is held by the sale of Farrer Park condominium, which fetched S$1.34 billion in 2007. The condo has since been redeveloped into D’Leedon condo.