The Urban Redevelopment Authority (URA) has given the green light for the potential conservation of Golden Mile Tower. This decision will only take effect if the 99-year leasehold development is successfully sold in a collective sale and a developer plans to redevelop the property.
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Based on documents seen by EdgeProp Singapore, the government has stated that if a developer voluntarily conserves the existing cinema block, the site’s allowable gross plot ratio (GPR) could increase from 4.46 to 5.6, given the current land area of 93,902.5 sq ft. This would result in a higher redevelopment allowable gross floor area (GFA) of 525,854 sq ft, a substantial increase from the current GFA of 419,142 sq ft. Additionally, voluntary conservation would also allow for a higher maximum building height of 164m, compared to the current limit of 145m for the site.
The recent attempt for a collective sale of Golden Mile Tower was made in August last year, with a reserve price of $556 million. This was the third en bloc attempt by the owners of the 99-year leasehold development.
According to Anna Tan, 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 remains unchanged, translating to a land rate of $1,350 per sq ft. This rate includes the cost of renewing the land tenure, but does not take into account land betterment charges.
“A higher building height limit, given under the voluntary conservation options, presents opportunities for developers to revamp the property into a striking presence on the Singapore skyline. It also means that the new development could feature commercial and hotel spaces with 5m floor-to-ceiling heights, while residential units could offer 3.6m ceiling heights,” says Tan.
The approval for the voluntary conservation of Golden Mile Tower is significant, especially since the neighboring Golden Mile Complex, which has now been restored as Golden Mile Singapore, was also gazetted for conservation in 2021. Golden Mile Singapore, a joint development between Perennial Holdings and Far East Organization, launched its commercial units in December last year, with plans to launch the new residential units in this quarter.
“This is a rare opportunity to redevelop Golden Mile Tower, given the limited land supply along Beach Road and the price increase due to rejuvenation efforts such as the launch of Golden Mile Singapore and the neighboring Kallang Alive masterplan,” says Tan.
She adds that the redevelopment of Golden Mile Tower presents a unique opportunity to create a new mixed-use development in a prime location along Beach Road. The building’s heritage and future potential make it an attractive investment opportunity for both local and international investors.