The Urban Redevelopment Authority (URA) has given the green light to an outline application for the voluntary conservation of Golden Mile Tower. This would only be implemented if the 99-year leasehold development is successfully sold in a collective sale and the new developer plans to redevelop the property.
Based on documents obtained by EdgeProp Singapore, the government has indicated that if the developer voluntarily conserves the existing cinema block, it may allow the site’s gross plot ratio (GPR) to increase from 4.46 to 5.6, taking into account the current site area of 93,902.5 sq ft. This would subsequently boost the allowable gross floor area (GFA) of the redevelopment to 525,854 sq ft, a significant increase from its current GFA of 419,142 sq ft. Moreover, voluntary conservation would also allow for a higher maximum building height of 164m, as compared to the current height limit of 145m for the site.
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In August last year, the owners of Golden Mile Tower made their third collective sale attempt, setting a reserve price of $556 million. This would have been the third en bloc sale and redevelopment of this 99-year leasehold development.
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According to Anna Tan, the business development director at Tag Realty, the marketing agent for the collective sale of Golden Mile Tower, the reserve price for the 99-year leasehold development has remained unchanged. This amounts to a land rate of $1,350 per sq ft, which includes the cost of renewing the land tenure but does not include land betterment charges.
“The increase in building height limit under the voluntary conservation option presents exciting possibilities for developers to revamp the property and create a striking presence in the skyline,” says Tan. “It also means that commercial and hotel spaces in the new development could feature 5m floor-to-ceiling heights, while residential units could offer 3.6m ceiling heights.”
The approved voluntary conservation of Golden Mile Tower holds significant value, especially since the neighboring Golden Mile Complex, now known as Golden Mile Singapore, was declared a conservation area in 2021. The development is a joint venture between Perennial Holdings and Far East Organization. The commercial units were launched in December last year and the new residential units, housed in a 45-storey tower, are expected to be launched in the current quarter.
“This is a rare opportunity to redevelop Golden Mile Tower, considering the limited land supply along Beach Road and the anticipated price appreciation due to ongoing rejuvenation efforts, such as the recent launch of Golden Mile Singapore and the surrounding Kallang Alive masterplan,” says Tan. “This redevelopment offers an opportunity to create a new mixed-use development in a prime location along Beach Road, and its heritage and future potential make it an attractive investment opportunity for both local and foreign investors.”