Golden Mile Tower relisted for S$556 million

Golden Mile Tower relisted for S$556 million

This reserve price is 7.3% lower than the one in its 2023 proposal to sell en bloc for $600 million.

Aug 8, 2024

GOLDEN Mile Tower will be reintroduced for collective sale again, this time with a lower reserve price of S$556 million, down 7.3% from the S$600 million reserve price set in the last effort.

The reduced reserve price amounts to a land rate of S$1,117 per square foot (psf), before land-betterment fees and a premium to renew the lease for another 99 years.

Anna Tan, business development director at Tag Realty, the sales agent, informed us that the present effort is "quite promising" - the owners have submitted an outline proposal to the Urban rehabilitation Authority (URA) for the site's rehabilitation.

The planned renovation would have two buildings, one 32 storeys and the other 35 storeys, with a plot ratio of 5.3 and gross floor space of 46,253.1 square metres (sq m).

Tan stated that 30 percent of the mixed-use development will be for shops, 48 percent for offices, 16 percent for hotels, and 6 percent for "distinctive penthouses with a private sky club."

Furthermore, she stated: "With no Additional Buyer's Stamp Duty for commercial buyers and no restrictions on foreign ownership, this is a prime investment opportunity in a high-demand location."

The owners of 6001 Beach Road's 99-year leasehold commercial property are making their third en bloc effort. It was originally offered for collective sale in November 2022 at an approximate price of S$650 million; it closed with no offers in early 2023. It was reissued in April 2023 with a reserve price of S$600 million, but no buyers were found.

According to prior estimates, Golden Mile Tower is worth S$598 million.

At the original asking price of S$600 million, retail unit owners would have received an estimated sum ranging from S$370,000 to S$14.7 million, depending on the size of their property.

Those who owned office spaces would have gotten between S$540,000 and S$12.4 million.

Golden Mile Tower, located in District 7, has a gross floor area of 38,953 square meters and an 8,727 square metre site area. It consists of 405 strata lots and includes 251 retail units, 152 office units, a theatre, and a parking lot.

The 22-story skyscraper, which is allocated for commercial use under the URA's 2019 Master Plan, has a lease of around 46 years.

Tan stated that the tender for Golden Mile Tower will most likely be released later this month and close in October, with the outline application intended to be accepted by URA.