V on Shenton (UIC Building Redevelopment)

[Baby]

Depending who get it. If local developers, it's likely to go for residential as it gives them quick return...as office return will be slower over years..and before it's development complete, BFC and the white site behind OneShenton may had captured office tenants earlier.

[RafflesCity]

UIC poised to buy rest of UIC Building?

10 Apr 07

En bloc deal could value Shenton Way office block at $630m: analysts

MAINBOARD-LISTED United Industrial Corporation is poised to buy the remaining 21 per cent of UIC Building that it does not already own under a collective sale that could value the ageing leasehold Shenton Way office block at about $630 million, say market watchers.



This pricing works out to about $900 psf of potential gross floor area inclusive of a total of around $180 million payable to the state for development charges and upgrading the site's lease to 99 years from the current remaining term of about 61 years.

UIC Building, which is being marketed by CB Richard Ellis, is understood to have earlier attracted three bids - from City Developments, Wing Tai and UIC itself - in an expression of interest exercise which closed on Feb 8.

Analysts reckon that UIC would be in a better position to pay a higher price to the other owners as, unlike rival developers, its outlay will be lower since it already owns 78.8 per cent of the building. UIC is controlled by Singapore's Wee Cho Yaw and Philippine tycoon John Gokongwei.

'For UIC to be in talks with other owners to buy the building through a collective sale, its latest offer must be higher than the top price indication achieved during the expression of interest,' said a real estate market watcher.

'And as UIC already owns 78.8 per cent of share values in the development, it's probably going about the collective sale carefully, being mindful of the minority owners and ensuring that the sale process is handled in a transparent way - to minimise hiccups later when an application is made to the Strata Titles Board,' he added.

Under Master Plan 2003, the 72,960 sq ft site is zoned for commercial use with an 11.2+ plot ratio and qualifies for a 10 per cent bonus plot ratio. The site has a 35-storey height limit. The maximum potential gross floor area works out to 898,867 sq ft inclusive of the bonus plot ratio.

Despite the current shortage of office supply on the island, market watchers reckon the best and highest redevelopment use for the UIC Building site would probably still be residential, rather than office.

This is because a residential development will be able to achieve a higher efficiency (ratio of net saleable area to gross floor area) and lower construction/ interest costs.

Any redevelopment will be subject to approval from the authorities, including the Urban Redevelopment Authority.

A full-residential redevelopment scheme could result in about 600 units averaging 1,500 sq ft being built on the site, or 750 apartments assuming a smaller average unit size of 1,200 sq ft.

Property consultants reckon a realistic selling price to assume for a new condo project on the UIC site, given the substantial number of units involved and the fact that the site is not next to the popular Marina Bay, could be about $1,500 psf on average.

Factoring in profit margins for the developer and rising construction costs, the land price works out to about $900 psf of potential gross floor area.

When an expression of interest exercise was conducted in late December, the asking price bandied was 'over $830 million'. However, this was probably the price agreed with the sales committee based on owners' expectations of a price of $2,000 psf for their respective existing strata areas in the building (the building has about 415,000 sq ft existing strata area) - rather than an evaluation of what price the market can support for a redevelopment scheme.



By KALPANA RASHIWALA

[Charging Bull]

UIC acquiring UIC Building for S$600m
By Loh Kim Chin, Channel NewsAsia | Posted: 13 April 2007 2215 hrs



SINGAPORE: United Industrial Corporation (UIC) has announced its intention to redevelop UIC Building.

In a statement out on Friday, UIC said it is acquiring the property along Shenton Way for S$600 million.

UIC is making the purchase through its wholly-owned subsidiary, UIC Investments.

Currently, UIC own about 78.8 percent of UIC Building.

At S$600 million, the purchase price works out to about S$870 per square foot per plot ratio.

Last year, UIC invited expressions of interest for UIC Building.

It was said to be asking for at least S$830 million for the collective sale.

UIC is widely expected to redevelop the site into a condominium in view of the current feverish sentiment for residential properties in the Central Business District.

The deal is subject to approval by the Strata Title Board.


- CNA/so

[freelance]

Originally Posted by RafflesCity

UIC poised to buy rest of UIC Building?

Property consultants reckon a realistic selling price to assume for a new condo project on the UIC site, given the substantial number of units involved and the fact that the site is not next to the popular Marina Bay, could be about $1,500 psf on average.

Looks like the new benchmark has been set for Icon...

[RafflesCity]

UIC buys UIC Building under collective sale

14 Apr 07

Deal prices Shenton Way property at $600m

UNITED Industrial Corporation (UIC) yesterday announced it had inked a deal to buy UIC Building at Shenton Way under a collective sale that prices the property at $600 million, or $870 per square foot of potential gross floor area inclusive of development charge and differential premium to top up the site's lease to 99 years.

The mainboard-listed company said subsidiary proprietors of the building who own at least 80 per cent of share values have accepted UIC's offer to purchase the property yesterday. The subsidiary proprietors include UIC and its fully owned unit, UIC Development (Pte) Ltd, which together hold 78.8 per cent of share values in the property.

Analysts note the net real acquisition cost to UIC for purchasing the 21.2 per cent of the property that it does not already own works out to about $127 million.

CB Richard Ellis brokered the deal.

The collective sale is subject to approval from the Strata Titles Board and the obtaining of a Qualifying Certificate from the Controller of Residential Property, if applicable.

UIC is said to be planning a twin-tower residential development on the site.

'But looking at the way office values are shooting up, I wouldn't be surprised if they changed their minds and redeveloped the site into a new office development instead,' said a market watcher.

According to a BT report earlier this week which said UIC was poised to buy the rest of the building that it does not already own, the building had attracted three bids - from UIC, City Developments and Wing Tai in an expression of interest exercise which closed on Feb 8.

Analysts reckon that UIC would be in a better position to pay a higher price to the other owners as, unlike rival developers, its outlay will be lower since it already owns 78.8 per cent of the building.

Under Master Plan 2003, the 72,960 sq ft site is zoned for commercial use with an 11.2+ plot ratio and qualifies for a 10 per cent bonus plot ratio. The plot has a 35-storey height limit.

The maximum potential gross floor area of the site works out to 898,867 sq ft inclusive of the bonus plot ratio.

A full-residential redevelopment scheme could result in about 600 units averaging 1,500 sq ft being built on the site, or 750 apartments assuming a smaller average unit size of 1,200 sq ft.

Of course, any redevelopment scheme will have to be approved by the authorities.


By KALPANA RASHIWALA

[Baby]

There goes CDL Mr Kwek's dream of buying over Shenton House and UIC to develop his mini city within CBD ! His idea was to build new hotel, office, and retail along the Shenton Way..with 1 Shenton residential, this was a good concept.

I felt UIC invitation bids early this year was just for show.., since they already own 78% of the stake....

[Jim856796]

Should the UIC Building be demolished? I hope not. We may have to wait until 2013 for that to happen.

[RafflesCity]

Any idea why 2013?

When do the tenancies in the building expire? It might be redeveloped as a new office building.

[Jim856796]

It has 40 floors and it is only 35 years old. If this buillding goes to be with its Lord now, we may have our own 130 Liberty Street.

[Jim856796]

I don't want the building deceased and any redevelopment plans for this tower are unacceptable.

[ddes]

What's with you and buildings that cannot be demolished?

In Asia, that's how things roll. Conservation and preservation of architecture take second place to economic development and the need for prime office space, which even in the biggest Asian cities like Shanghai lack too.

[RafflesCity]

What is more dramatic was the demolition of Scotts Shopping Centre, built only in the 80s.

UIC is one of the earlier skyscrapers here, along with DBS and CPF.

[wonuraimo]

Well they could always build another skyline peak around that area.Up to 250m right?Maybe something to complement Capital Tower perhaps?

[Jim856796]

Originally Posted by ddes

What's with you and buildings that cannot be demolished?

In Asia, that's how things roll. Conservation and preservation of architecture take second place to economic development and the need for prime office space, which even in the biggest Asian cities like Shanghai lack too.

But you don't see any other Asian city besides Hong Kong tearing down any buildings taller than 100 metres.

[ddes]

Originally Posted by Jim856796

But you don't see any other Asian city besides Hong Kong tearing down any buildings taller than 100 metres.

Well, other Asian cities are demolishing buildings shorter than 100m that are worth much more in cultural value like the hutongs in Beijing and up till recently, those unique Shanghai colonial buildings.

[spikeshamz]

Maybe they should just changed it to another high end residential like the ascott. And built new office towers gleemming with glass on the new marina south area...

[redstone]

Originally Posted by ddes

Well, other Asian cities are demolishing buildings shorter than 100m that are worth much more in cultural value like the hutongs in Beijing and up till recently, those unique Shanghai colonial buildings.

Singapore did that too. Many of our shophouses and all the kampongs had been demolished.

[Autobots]

UIC plans to redevelop UIC Building at 5 Shenton Way



SINGAPORE : Mainboard-listed United Industrial Corporation (UIC) plans to redevelop the UIC Building at 5 Shenton Way.

The company has paid an estimated development charge of S$160.1 million to the Urban Redevelopment Authority for the proposed redevelopment.

This is based on a 60 per cent residential and 40 per cent commercial mix with a gross floor area of 926,589 square feet (86,083 square metres).

UIC said the proposed redevelopment will be financed by internal funds and bank borrowings.

It said it is not expected to have any material impact on its net tangible assets and earnings per share for the financial year ending 31 December 2010. - CNA /ls

[Vrooms]

Here's the current UIC Building:


I think its about time to redevelop this building. It was built in 1973 and is 153metres tall. What is the height limit for this plot?

[spikeshamz]

This building is one of the nicest in the strip. Even though that it is short in height, It has a very particular design....There is too much modern buildings now along shentonway..
1973 is not an old building. Look at Chicago which has buildings dates back to 1800s. What do we have, Short shophouses..... We need to retain those old landmarks skyscrapers..