One of the iconic constructions in the Central Business District (CBD) of Singapore, the 38-year old CPF Building will be put up for sale really soon for an estimated sale price of more than S$450 million.
It is currently standing at 46-storey tall at 79 Robinson Road, with a total net lettable area (NLA) of approximately 325,000 square feet (sqft). Also, It will be left with a 52-year lease at the end of 2015.
The most recent acquisition of a current building standing in CBD was when GSH Corporation bought over the existing Equity Plaza, and to be renamed to GSH Plaza.
It was mentioned that CPF Board’s service centre will continue it’s operation at the building till further notice. However, the offices are set shift out by the 4th quarter to their new leased space of 260,000 sqft at Novena Square.
The CPF Building may only be sitting on a land size of estimated 47,055 sqft, but according to the Urban Redevelopment Authority (URA)’s Master Plan of 2014, it can be redeveloped into a new commercial building with a maximum height of 50-storey. It was also noted that the land has a plot ratio of maximum 12.88 with an additional plot ratio bonus due to its land size and located within a short distance to Tanjong Pagar MRT station. Therefore, this new commercial building could have a total gross floor area (GFA) of maximum 606,068 sqft, providing a great potential for redevelopment which is certainly a significant plus point for property developers to consider.
Not only that, It was suggested by market analysts that before the building is being opened for tender bids or expressions of interest, the building’s current GFA has to be verified in order to produce a precised calculation of the premium difference which is required to be paid to the state by the winning bidder of the site, for utilizing the unused GFA.
Other considerations by potential developers bidding for this plot include assessing the development type which will blend into the government’s overall plans for the district and also to find out the likelihood of a lease top-up for the the site.