IOI Properties’ Lee Yeow Seng Acquires Shenton House for S$538 Million
In a successful collective sale, Shenton House, located in Singapore’s Central Business District, has been sold for S$538 million. The buyer, Shenton 101 Pte Ltd, is owned by Lee Yeow Seng, the Group CEO of IOI Properties Group (IOIPG), a listed company on Bursa Malaysia Securities. Lee participated in the acquisition in his personal capacity due to the acquisition’s size and the tight timeline set by the collective sales committee (CSC).
IOIPG has a substantial presence in the Marina Bay area through properties like IOI Central Boulevard Towers, W Marina Bay, and Marina View Residences. Lee sees the acquisition and redevelopment of Shenton House as timely and synergistic with IOIPG’s existing presence in Marina Bay.
With over half a million square feet of gross floor area (GFA) for the Shenton House site, Lee plans to develop it into a Grade A office with luxury branded serviced residences. The site is eligible for a 25% bonus GFA under the CBD Incentive Scheme (CBDIS), allowing it to be redeveloped into mixed-use commercial with residential or a hotel. The land rate for this acquisition is about S$1,889 per square foot per plot ratio (psf ppr) based on the gross plot ratio of 14.
JLL’s executive director for capital markets, Tan Hong Boon, noted that the sale had obtained more than 80% of the owners’ consent prior to the tender’s close. This sale is subject to the statutory five-day cooling-off period until Monday and conditional on the CSC obtaining the approval of the sale from the Strata Titles Boards or the Court.
The acquisition of Shenton House follows IOI Properties’ strategy to strengthen its presence in the prime office sector and residential rental market in Singapore, reflecting confidence in the city-state’s real estate market.
Shenton House’s successful en bloc sale contributes to the rejuvenation of the Shenton Way area, as it is considered the last remaining redevelopment opportunity along this stretch of Shenton Way. This sale also aligns with the growing demand for new Grade A offices in the core of the Central Business District (CBD) and luxury rental housing.
The sale of Shenton House is a significant development in the ongoing trend of collective sales in Singapore’s real estate market.
