Singapore gadget central Sim Lim Square has launched its next collective sale tender using a sweetener for potential developers – an additional 27 percent of built-up space in addition to the chance of reduced growth charges.
However, the book price remains unchanged at greater than $1.25 billion. The final date of this tender is Dec 30.
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“The present net lettable area of 237,066 sq feet seemed a little low because of the wastage of shared areas, corridors… Thus, we appointed an architect to redraw the construction map, and in the process, discovered that the built-up space was considerably higher than we anticipated at 499,715 sq feet – 27 percent greater than the 391,000 sq feet from the planning documents”
Six-storey Sim Lim Square, together with 492 components across a floor area of 22,007 sq m, was finished in 1987 and soon became famous for its electronic equipment and IT products and services retailers. The storyline is completely zoned for commercial use, therefore there’s not any mandatory requirement to leading up the lease, which has 63 years ago.
“Along with that, we also found that the mall had inhabited a land parcel of 8,066.7 sq m. But through the years, some land was surrendered into the road book, leading to the current land area of 7,260.6 sq m.
“What this means is when the upcoming programmer submits his advancement application, he can submit the land area of 8,066.7 sq m, that may potentially lead to savings on development charges,” Mr Gupta said.
The mall is attempting to attract international capital making institutional purchases in Singapore, he added.
The land rate might also be reduced further if developers qualify for converting the house for other applications under the Urban Redevelopment Authority’s Strategic Development Incentive scheme, Mr Gupta said.
In another incentive for Reits or mall operators seeking to revitalise the mall, Sim Lim Square has been earmarked for neighborhood usage. “This means that in case the programmer creates spaces for neighborhood use, they can ask additional gross floor area, which will also decrease the land rate,” Mr Gupta added.
Part of this mall’s first time storey has also recently got approval to operate till 3am, as well as liquor and entertainment licences for clubs and bars, ” he said. Hopefully, these incentives can help generate more buzz among developers for your mall’s second tender,” said Mr Gupta.
Mr Tan said this was a result of several factors such as the uncertain global economic outlook because of this US-China trade war, and muted belief after collective sale catalyst came to an end after the heating measures last year.
Collective sale curiosity in certain commercial properties has never completely faded. The tender submission date to its 780 million collective sale of The Arcade at Raffles Place has been extended to March 5 next year from Jan 8, after feedback from developers that they need much more time to assess the website.