{"id":363214,"date":"2023-11-02T00:44:15","date_gmt":"2023-11-01T16:44:15","guid":{"rendered":"https:\/\/www.mingtiandi.com\/?p=363214"},"modified":"2023-11-06T21:16:36","modified_gmt":"2023-11-06T13:16:36","slug":"ioi-properties-boss-buys-singapores-shenton-house-for-392m","status":"publish","type":"post","link":"https:\/\/www.mingtiandi.com\/real-estate\/projects\/ioi-properties-boss-buys-singapores-shenton-house-for-392m\/","title":{"rendered":"IOI Boss Buys Shenton House for $392M in Singapore\u2019s Second-Largest Deal of 2023"},"content":{"rendered":"<div id=\"attachment_363215\" style=\"width: 790px\" class=\"wp-caption alignnone\"><img decoding=\"async\" aria-describedby=\"caption-attachment-363215\" class=\"size-full wp-image-363215\" src=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/11\/Shenton-House-Property-Photo.webp\" alt=\"Shenton House Property Photo\" width=\"780\" height=\"474\" srcset=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/11\/Shenton-House-Property-Photo.webp 780w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/11\/Shenton-House-Property-Photo-400x243.webp 400w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/11\/Shenton-House-Property-Photo-640x389.webp 640w\" sizes=\"(max-width: 780px) 100vw, 780px\" \/><p id=\"caption-attachment-363215\" class=\"wp-caption-text\">Shenton House will soon make way for a new IOI tower<\/p><\/div>\n<p>A private company controlled by the vice chairman of Malaysia\u2019s IOI Properties Group has struck a deal to make Singapore\u2019s second largest real estate acquisition of 2023, picking up the Shenton House commercial tower in the central business district for S$538 million ($392 million), according to an announcement on Wednesday by JLL.<\/p>\n<p>The acquisition by the company belonging to Lee Yeow Seng, who also serves as chief executive of the Kuala Lumpur-listed builder, sets the tycoon and his company up to develop up to 507,500 square feet (47,148 square metres) of combined commercial and residential space on the site fronting Shenton Way opposite the Singapore stock exchange and adjacent to Asia Square in the Marina Bay area.<\/p>\n<p style=\"text-align: center;\"><a data-no-instant=\"1\" href=\"https:\/\/ad.doubleclick.net\/ddm\/trackclk\/N6563.3378992MINGTIANDI\/B30546704.375324595;dc_trk_aid=566156183;dc_trk_cid=192150727;dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;tfua=;ltd=;dc_tdv=1\" rel=\"noopener\" class=\"adv-link\" target=\"_blank\" aria-label=\"Copy of APAC_EN_Capabilities_Static_StandoutAPAC_780x250_Real Estate\"><img decoding=\"async\" src=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/Copy-of-APAC_EN_Capabilities_Static_StandoutAPAC_780x250_Real-Estate.jpg\" alt=\"\"  srcset=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/Copy-of-APAC_EN_Capabilities_Static_StandoutAPAC_780x250_Real-Estate.jpg 780w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/Copy-of-APAC_EN_Capabilities_Static_StandoutAPAC_780x250_Real-Estate-400x128.jpg 400w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/Copy-of-APAC_EN_Capabilities_Static_StandoutAPAC_780x250_Real-Estate-640x205.jpg 640w\" sizes=\"(max-width: 780px) 100vw, 780px\" width=\"780\" height=\"250\"   \/><\/a><script language='JavaScript1.1' src=\"https:\/\/ad.doubleclick.net\/ddm\/trackimpj\/N6563.3378992MINGTIANDI\/B30546704.375324595;dc_trk_aid=566156183;dc_trk_cid=192150727;ord=+ Date.now();dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;tfua=;gdpr=${GDPR};gdpr_consent=${GDPR_CONSENT_755};ltd=;dc_tdv=1?\" attributionsrc ><\/script><\/p>\n<p>\u201cWith over half a million square feet of gross floor area, we will develop this strategically located and very prominent site into a premier Grade A office and luxury branded service residences. This purchase demonstrates my continued confidence in Singapore\u2019s prime office sector and residential rental market,\u201d Lee said.<\/p>\n<p>IOI has been among the most aggressive buyers of commercial sites in Marina Bay having paid the equivalent of $1.1 billion to acquire <a href=\"https:\/\/www.mingtiandi.com\/real-estate\/crelist\/ioi-properties-wins-marina-bay-site-in-singapore\/\">a mixed-use plot a block south of Shenton House<\/a> in 2021. The company\u2019s IOI Central Boulevard office tower, which in June <a href=\"https:\/\/www.mingtiandi.com\/real-estate\/projects\/morgan-stanley-leasing-five-floors-at-ioi-central-boulevard-in-singapore\/\">won a five-floor pre-leasing commitment<\/a> from Morgan Stanley, is located one block north of Lee\u2019s new project.<\/p>\n<h3>Work, Live and Play<\/h3>\n<p>Shenton House\u2019s 36,350 square foot site is the prime target of the acquisition, with the 1954-vintage tower set to make way for a combined commercial and residential complex which, under government incentives established in 2019 to encourage building of residential in Singapore\u2019s urban core, would allow the developer to build 25 percent more space on the prime site than if it pursued a pure office strategy.<\/p>\n<div id=\"attachment_353121\" style=\"width: 682px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" aria-describedby=\"caption-attachment-353121\" class=\"size-full wp-image-353121\" src=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/06\/Files_about-us_image_ioi_director4_b.jpg\" alt=\"IOI Properties executive vice chairman Lee Yeow Seng (IOIGroup.com)\" width=\"672\" height=\"480\" srcset=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/06\/Files_about-us_image_ioi_director4_b.jpg 672w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/06\/Files_about-us_image_ioi_director4_b-400x286.jpg 400w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/06\/Files_about-us_image_ioi_director4_b-640x457.jpg 640w\" sizes=\"(max-width: 672px) 100vw, 672px\" \/><p id=\"caption-attachment-353121\" class=\"wp-caption-text\">IOI Properties executive vice chairman and CEO Lee Yeow Seng (IOIGroup.com)<\/p><\/div>\n<p>At the agreed compensation, and after paying an estimated land betterment charge and lease top up fee to the government to win a fresh 99-year leasehold term, Lee is paying the equivalent of S$1,885 per square foot of built area in the project, assuming that the developer pursues a mix of 60 commercial to 40 percent residential.<\/p>\n<p style=\"text-align: center;\"><a data-no-instant=\"1\" href=\"https:\/\/www.mingtiandi.com\/real-estate\/events\/oxford-ivanhoe-kic-savills-on-singapore-india-markets\/\" rel=\"noopener\" class=\"adv-link\" target=\"_blank\" aria-label=\"14 NOVEMBER 2023 conrad centennial Singapore\"><img decoding=\"async\" src=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/11\/14-NOVEMBER-2023-conrad-centennial-Singapore.jpg\" alt=\"\"  srcset=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/11\/14-NOVEMBER-2023-conrad-centennial-Singapore.jpg 780w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/11\/14-NOVEMBER-2023-conrad-centennial-Singapore-400x128.jpg 400w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/11\/14-NOVEMBER-2023-conrad-centennial-Singapore-640x205.jpg 640w\" sizes=\"(max-width: 780px) 100vw, 780px\" width=\"780\" height=\"250\"   \/><\/a><\/p>\n<p>\u201cShenton House is the last remaining redevelopment opportunity at this stretch of the prime Shenton Way thoroughfare,\u201d said Tan Hong Boon, an executive director with JLL\u2019s capital markets division in Singapore, whose team advised on the transaction. \u201cGiven the limited supply of new Grade A offices in the core of the CBD as occupiers look to locate to low carbon modern office space, as well as the limited availability of luxury rental housing in the area, the Shenton House site will fill these gaps timely and further contribute to the rejuvenation of Shenton Way.\u201d<\/p>\n<h3>Market Slows<\/h3>\n<p>Lee is acquiring the strata-title tower through the ownership group\u2019s third attempt at a collective sale of the aging building after an initial attempt in February of this year at a reserve price of S$590 million had failed to receive a bid by the April deadline.<\/p>\n<p>The lead owners then launched a second attempt in June at the reduced price of S$538 million, but failed to persuade enough owners to sell at the reduced price.<\/p>\n<p>At the agreed compensation, Shenton House still ranks as Singapore\u2019s second-biggest ticket for a single property asset in the city-state this year, according to Mingtiandi statistics, ranking behind only <a href=\"https:\/\/www.mingtiandi.com\/real-estate\/projects\/mainland-billionaires-bright-ruby-buying-singapore-mall-for-667m\/\">the S$908 million collective sale of the Far East Shopping Centre<\/a> on Orchard Road to Chinese billionaire Du Shuanghua\u2019s Bright Ruby one month ago.<\/p>\n<p style=\"text-align: center;\"><a data-no-instant=\"1\" href=\"https:\/\/www.mipim-asia.com\/?utm_source=mingtiandi&#038;utm_medium=barter_website&#038;utm_campaign=mipimasia2023\" rel=\"noopener\" class=\"adv-link\" target=\"_blank\" aria-label=\"AR-607487_Mipim Asia_23_Banner Resize 780&#215;250\"><img decoding=\"async\" src=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/AR-607487_Mipim-Asia_23_Banner-Resize-780x250-1.jpg\" alt=\"\"  srcset=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/AR-607487_Mipim-Asia_23_Banner-Resize-780x250-1.jpg 780w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/AR-607487_Mipim-Asia_23_Banner-Resize-780x250-1-400x128.jpg 400w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/AR-607487_Mipim-Asia_23_Banner-Resize-780x250-1-640x205.jpg 640w\" sizes=\"(max-width: 780px) 100vw, 780px\" width=\"780\" height=\"250\"   \/><\/a><\/p>\n<p>In July, a holding company linked to Singapore\u2019s Worldwide Hotels Group <a href=\"https:\/\/www.mingtiandi.com\/real-estate\/finance\/pan-pacific-selling-singapore-parkroyal-to-worldwide\/\">acquired the ParkRoyal on Kitchener Hotel from Pan Pacific Hotels<\/a> Group for S$525 million.<\/p>\n<p>\u201cThis bid recognises the attractiveness of Singapore\u2019s office sector and residential rental market underpinned by Singapore\u2019s exceptional fundamentals as Asia\u2019s financial and business centre,\u201d JLL\u2019s Tan said.<\/p>\n<p>Investment in Singapore real estate, including land sales, is predicted to drop to no more than S$21 billion this year from S$24.7 billion in 2022, according to a recent report from Savills. That slowdown in property trades comes despite prime office rents in the central business district around Raffles Place and Marina Bay having risen 5.1 percent in the first three quarters of 2023, according to a separate study by Knight Frank.<\/p>\n<p>Growth in office rents slowed to 0.8 percent in the third quarter, with rising interest rates and growing geopolitical uncertainty further deterring trades.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A private company controlled by the vice chairman of Malaysia\u2019s IOI Properties Group has struck a deal to make Singapore\u2019s second largest real estate acquisition of 2023, picking up the Shenton House commercial tower in the central business district for&#8230;&nbsp;<a href=\"https:\/\/www.mingtiandi.com\/real-estate\/projects\/ioi-properties-boss-buys-singapores-shenton-house-for-392m\/\">Read&nbsp;More>><\/a><\/p>\n","protected":false},"author":178,"featured_media":353121,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[3401],"tags":[6794,6454,5382,5359,3013,5576,282],"ppma_author":[8841],"authors":[{"term_id":8841,"user_id":178,"is_guest":0,"slug":"michael-cole","display_name":"Michael Cole","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/3ade7d9efc9643ef5127fe8275be2eb2?s=96&d=mm&r=g","user_url":"","last_name":"Cole","first_name":"Michael","description":""}],"_links":{"self":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/posts\/363214"}],"collection":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/users\/178"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/comments?post=363214"}],"version-history":[{"count":0,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/posts\/363214\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/media\/353121"}],"wp:attachment":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/media?parent=363214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/categories?post=363214"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/tags?post=363214"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/ppma_author?post=363214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}