The historic Golden Mile Complex at Beach Road, which was gazetted as a conserved development in October, is up for collective sale again at the same reserve price of $800 million after the last effort failed due to a lack of interest.
The lease on the 16-story building with 718 strata-titled flats is up in 47 years. Its owners previously attempted an en bloc sale in October2018, but the first round’s two tenders failed to find purchasers in July 2019.
The collective sale was promptly relaunched in August 2019, with the collective sale committee and marketing agent Edmund Tie continuing to offer comments on the planned conservation to the Urban Redevelopment Authority (URA).
At $800 million, the approximate land pricing, including differential premium and lease upgrading premium, will be about $1,350 per square foot per plot ratio, depending on the planned use mix.
Because Golden Mile Complex is classified for commercial use, there is no extra buyer’s stamp duty to pay. International ownership is also unrestricted.
The Golden Mile Complex, built in 1973, is the first large-scale strata-titled construction to be preserved in this area. Signature building elements include a step terrace, slanted beams, and “floating” staggered stairs, all of which are known for their Brutalist architectural style.
The site’s maximum gross floor space is expected to be 81,000 square meters. In addition, a new 30-story skyscraper might be constructed next to the preserved structure.
URA is proposing extra planning incentives in exchange for developers adhering to the conservation criteria. These include a one-third increase in floor space with a complete tax exemption for the preserved floor area, a partial tax exemption for the additional floor area, a 99-year lease renewal, and the opportunity to change the 1.3 hectare site’s perimeter.
When Minister for National Development Desmond Lee announced the building’s conservation in October, he noted, “The incentive package is unique to Golden Mile Complex since its conservation is the first of its type, another pioneering endeavor.”
“We hope that developers will take into account the site’s potential as well as our aim to revitalize a national symbol,” the minister stated.
“Golden Mile Complex is a national symbol that has defined the aesthetic character of our built environment,” said Ms Swee Shou Fern, executive director of investment advice at Edmund Tie. Its remarkable architecture and internationally iconic reputation will provide enormous opportunity for the property to be transformed into a lively destination with aspects of work, living, and play.
“In addition to financial incentives in the form of development fee exemptions, the (conservation incentives) package provides developers with freedom in the use mix as well as architectural flexibility by permitting site boundary rearrangement,” she said.
A building analysis of the Golden Mile Complex, conducted by URA, will be included in the current tender to assist bidders in factoring in rehabilitation works in their assessment.
Golden Mile Complex’s tender will conclude at 3 p.m. on February 28, 2022.