Singapore, April 25, 2017 - Cushman & Wakefield has been appointed the sole marketing agent for the sale of 139 Cecil Street (the “Property”) through an expression of interest exercise which will close on 25 May 2017, 3.00 pm. The indicative price for the property on a completed basis is $210 million.
Built in the 1980s, the existing building is an 11-storey office building with an untapped plot ratio. Sitting on a 99 year leasehold land since 20 August 1981, the Property has a site area of approximately 7,936 sq. ft. According to the 2014 Master Plan, it is zoned as ‘Commercial’ with a plot ratio of 11.2+, and building height control of up to 35-storey.
The existing building is currently vacant and the vendor has commenced work to redevelop it into a new 16-storey boutique commercial building with office space, ground-level F&B outlets and car park facilities. The new total leasable area is estimated to be 85,000 sq. ft. and will comprise a communal roof terrace with recreational facilities such as swimming pool, gym, Jacuzzi, outdoor dining area and cabana. The redevelopment is expected to complete by 2Q 2018.
According to Shaun Poh, Executive Director of Capital Markets at Cushman & Wakefield, “This sale represents a great opportunity for investors to acquire a rare and sizable office building along the coveted Cecil Street in the heart of Singapore’s CBD area. It will be very attractive for end users who seek to own a CBD office building with appropriate naming and signage. The developer has obtained approval to strata subdivide the new development into 99 office units and 3 retail units, so that the subsequent owner has the option to sell the strata titled units when the market returns”.
He added, “The office leasing market appears to be stabilizing as evidenced by the marginal rental decline in the last quarter of 2016 and healthy take up of new office projects such as Marina One, 5 Shenton Way and Guoco Tower. The timing of the expected completion would be ideal for investors who seek to ride on the anticipated office market upswing by mid-2018.”
Singapore continues to see a strong inflow of liquidity seeking prime office assets in the CBD with several foreign investors recently making high profile acquisitions. For instance, the neighbor’s property 137 Cecil Street was sold recently for $210 million or $3,109 psf on NLA. Late last year, 110 Robinson Road a similar aged office building was sold for $45.1 million or $3,169 psf on an ‘as is where is’ basis. More recently, GSH Plaza along the same street as the Property was sold to HK-listed Fullshare via a company sale which valued the asset at $725.2 million or $2,900 psf for the office units.
Located along Cecil Street, the Property is easily accessible by both public and private transportation with five MRT Stations (Raffles Place, Telok Ayer, Downtown, Tanjong Pagar and Shenton Way) within a 500 meters radius. Accessibility is further enhanced by its proximity to major trunk roads like Shenton Way, Cross Street and expressways like Central Expressway (CTE) and East Coast Expressway (ECP). Amenities and facilities like eateries, banking services, retail outlets are also within close proximity to the property.
Left: Existing Building; Right: Artist's impression (after redevelopment)
Artist's impression (after redevelopment)
For further information, please contact:
Executive Director, Capital Markets
+65 9662 6430
Communications Manager, Singapore
+65 6317 8335