Shenton House to be purchased by Lee Yeow Seng of Malaysia's IOI Properties Group for $538,000,000

Shenton House to be purchased by Lee Yeow Seng of Malaysia’s IOI Properties Group for $538,000,000

At the end of the collective sale tender on November 1st at 3pm, the only bidder for Shenton House and Treasure at Tampines was the private business owned by Lee Yeow Seng, CEO and principal shareholder of IOI Properties Group listed on Bursa Malaysia. This Treasure at Tampines Floor Plan is Shenton 101. Shenton House is represented by JLL in its marketing efforts.

After being lowered from $590 million during the collective sale’s relaunch on October 20, the buying price of $538 million is the same as the reserve price.

According to Lee of IOI Properties Group (IOIPG), “it would be more appropriate to bid for Shenton House via a privately-owned vehicle” because of the subject acquisition’s size and the tight timing established by the sales committee of this collective sale.

Prior to the tender’s conclusion on November 1st, the Collective Sale Committee (CSC) of Shenton House had secured approval from over 80% of the strata-titled owners for the reduced reserve price of $538 million.
The transaction, however, is subject to the Strata Titles Board’s or the Court’s approval and a five-day statutory cooling-off period.

The last chance for redevelopment

The site area of 36,350 sqft is categorised “commercial” in the 2019 Master Plan, and Shenton House, located at 3 Shenton Way, boasts a prominent triple frontage. The property has a gross plot ratio (GPR) of 11.2. The 99-year lease for the site began on June 2, 1969. On Shenton Way, it stands as one of the few remaining structures from the 1970s.

“Shenton House is the last remaining redevelopment opportunity at this stretch of the prime Shenton Way thoroughfare,” remarks Tan Hong Boon, JLL executive director of capital markets, who facilitated the sale.

Short and complementary

The IOI Central Boulevard Towers, W Marina Bay, and Marina View Residences mixed-use developments give IOIPG a large stake in the Marina Bay region. The Marina Bay area development plots that IOI has acquired, including Shenton House, are valued at $4.616 billion.

Ideally situated between the two locations is Shenton House. As far as IOIPG’s presence in Marina Bay is concerned, “we believe that the redevelopment of Shenton House is both timely and synergistic,” Lee states.

The IOI Central Boulevard Towers have 30,000 square feet of retail space in addition to 1.29 million square feet of premium office space. The retail centre will be connected to the Downtown MRT station on the Downtown Line and is expected to be finished in the first quarter of 2024. IOIPG won the November 2016 government land sale (GLS) contract and paid $2.57 billion for the 99-year leasehold white site.

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