The Urban Redevelopment Authority (URA) has given approval for an initial proposal for the voluntary conservation of Golden Mile Tower. This would only take effect if the property, which has a 99-year leasehold, is successfully sold in a collective sale and the developer plans to redevelop the site.
According to documents obtained by EdgeProp Singapore, the government has stated that it may increase the site’s allowable gross plot ratio (GPR) from 4.46 to 5.6 if the developer voluntarily conserves at least the existing cinema block. This would be based on the current site area of 93,902.5 sq ft.
The higher GPR would also result in an increase in the allowable gross floor area (GFA) for the redevelopment, from its current 419,142 sq ft to 525,854 sq ft. In addition, voluntary conservation would also allow for a higher maximum building height of 164m, compared to the current height limit of 145m.
The most recent attempt by the owners of Golden Mile Tower to sell the property collectively took place in August last year, with a reserve price of $556 million. This was the third unsuccessful en bloc attempt for the 99-year leasehold development.
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Anna Tan, business development director at Tag Realty (the marketing agent for the collective sale of Golden Mile Tower), has stated that there has been no change in the reserve price for the property. This translates to a land rate of $1,350 per sq ft, which includes the cost of renewing the land tenure but does not factor in any land betterment charges.
“The increase in building height control under the voluntary conservation option presents opportunities for developers to revamp the property with a striking presence in the skyline. It also means that the new development’s commercial and hotel spaces could feature 5m floor-to-ceiling heights, while residential units could offer 3.6m ceiling heights,” says Tan.
The approval for voluntary conservation of Golden Mile Tower is particularly significant as its neighbour, Golden Mile Complex (now restored as Golden Mile Singapore), was gazetted for conservation in 2021. Golden Mile Singapore, a joint development by Perennial Holdings and Far East Organization, launched its commercial units last December. The new residential units, housed within a 45-storey tower, are expected to be launched this quarter.
“This presents a rare opportunity to redevelop Golden Mile Tower, given the limited land supply along Beach Road and the resultant price appreciation from 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 an opportunity to create a new mixed-use development in a prime location along Beach Road. The property’s heritage and future potential make it a unique investment opportunity for both local and international investors.