Industry watchers expect price tag may surpass S$280 million
ABI Plaza, a 12-storey freehold office building with triple frontages along Keppel, Tanjong Pagar and Lim Teck Kim roads, is understood to be on the market.
Market observers suggest the pricing expectation may be above S$280 million.
ABI Plaza’s owner – listed MYP Ltd, controlled by the family of Indonesian tycoon Tahir – paid S$175 million for the property in 2011. This worked out to around S$1,890 per square foot (psf) on its net lettable area of about 92,500 sq ft.
At the time, the property was known as RCL Centre.
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Completed in 1994, the building stands to benefit from the Central Business District (CBD) Incentive Scheme by the Urban Redevelopment Authority (URA).
The site on which ABI Plaza stands is zoned for commercial use with a 5.6 plot ratio under the URA’s Master Plan 2019. The building’s existing gross floor area (GFA), though, reflects a slightly higher plot ratio.
The CBD Incentive Scheme, which was unveiled last year, aims to spur owners of older, predominantly office buildings in some parts of the central business district to redevelop their properties into mixed-use projects.
By promoting a wider diversity of uses – for example, having more residences and hotels – the scheme seeks to inject a live-in population into the CBD and liven up the district in the evenings and on weekends. It took effect from Nov 27 last year, with the gazetting of URA’s Master Plan 2019.
The ABI Plaza site stands to gain up to 25 per cent more GFA if it were to be redeveloped under either a hotel scheme, or for commercial and residential use.
If the site is redeveloped into residential with commercial at first-storey use, the GFA can be increased by up to 30 per cent.
Assuming a potential buyer is planning a commercial and residential redevelopment scheme, a price of S$280 million for ABI Plaza would work out to slightly more than S$2,000 psf per plot ratio inclusive of development charges payable to the state, analysts estimate.
JLL and Quillion Global are understood to be the marketing agents for ABI Plaza.