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Golden Mile Complex, with its iconic stepped form, emerged as a symbol of this rapid national development. The building synthesised the prevailing international architectural aesthetic with a young nation's ambitions of urban renewal. - BT File photo
GOLDEN Mile Complex has been put up for sale in its second collective sale attempt at a reserve price of S$800 million after the Urban Redevelopment Authority (URA) announced on Oct 22, 2021 that Golden Mile Complex will be gazetted as a conserved building in view of its historical and architectural significance. Under the conservation status, the 47-year-old complex's main building with its signature terraced facade on top of a podium block will have to be retained.
Alongside the conservation requirements, a set of planning incentives will also be offered to support the adaptive reuse and commercial viability of the building given the building owners' interest in a collective sale. The incentives include bonus floor area which will allow the building of an additional 30-storey tower within the existing site, a partial development charge waiver on the additional floor area, a development charge waiver for the enhancement in value of the conserved gross floor area, adjustment of the site boundary to be more regular, the option to top up the lease on the land to 99 years, and the flexibility to adapt the building to a mix of possible uses.
Alongside the conservation requirements, a set of planning incentives will also be offered to support the adaptive reuse and commercial viability of the building given the building owners' interest in a collective sale. The incentives include bonus floor area which will allow the building of an additional 30-storey tower within the existing site, a partial development charge waiver on the additional floor area, a development charge waiver for the enhancement in value of the conserved gross floor area, adjustment of the site boundary to be more regular, the option to top up the lease on the land to 99 years, and the flexibility to adapt the building to a mix of possible uses.
Golden Mile Complex was completed in 1973, and its sister building Golden Mile Tower, located next door, was completed a year later. Some long-time business owners still occupy their units today, but little else has remained the same for this Brutalist icon.
In 2006, a politician described Golden Mile Complex as a "vertical slum" and a "national disgrace". Years of poor maintenance, low occupancy and low rent had caused the building's physical state to deteriorate.
The physical decline of Golden Mile Complex stems from its status as a strata-title leasehold property, which means that the building has hundreds of individual owners. At the start of the lease, everyone pools money into a fund, known as a sinking fund, which is used for building repairs. But there is no mechanism for the sinking fund to maintain the cash flow. Over time, the money dries up. The shared swimming pool has long been drained and lies unused, abandoned. Pipes often leak into residents' bedrooms and balconies.
In 2006, a politician described Golden Mile Complex as a "vertical slum" and a "national disgrace". Years of poor maintenance, low occupancy and low rent had caused the building's physical state to deteriorate.
The physical decline of Golden Mile Complex stems from its status as a strata-title leasehold property, which means that the building has hundreds of individual owners. At the start of the lease, everyone pools money into a fund, known as a sinking fund, which is used for building repairs. But there is no mechanism for the sinking fund to maintain the cash flow. Over time, the money dries up. The shared swimming pool has long been drained and lies unused, abandoned. Pipes often leak into residents' bedrooms and balconies.
The last sale attempt of the property had ended in July 2019, with the 2 tenders in the first round of the collective sale exercise closing with no bids. The reserve price for the sale remains the same as its previous attempt. Depending on the proposed mix of uses, the indicative land rate will work out to S$1,350 per square foot (psf) per plot ratio, including differential and lease upgrading premiums.
While developers keen to bid for the collective sale of Golden Mile Complex may be constrained by the building's conservation status, there are also incentives for the collective sale to take place. Kiwi Lim from Huttons Asia felt that the government also provided various carrots for developers who are keen to redevelop this beautiful project in a prime location with lots of upside potential with incentives such as increasing its gross plot ratio and waiving part of the development charge among others, making the Golden Mile Complex site much more appealing to entice developers. The upcoming potential future developments nearby will also make this future mixed development an attractive project.
While developers keen to bid for the collective sale of Golden Mile Complex may be constrained by the building's conservation status, there are also incentives for the collective sale to take place. Kiwi Lim from Huttons Asia felt that the government also provided various carrots for developers who are keen to redevelop this beautiful project in a prime location with lots of upside potential with incentives such as increasing its gross plot ratio and waiving part of the development charge among others, making the Golden Mile Complex site much more appealing to entice developers. The upcoming potential future developments nearby will also make this future mixed development an attractive project.
Business Times article on 30 Nov 2021
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