SINGAPORE (EDGEPROP) - The owners of Grand Building, a 10-storey commercial building at Phillip Street in Raffles Place, have put their property sale with Edmund Tie as the sole marketing agent.
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The Grand Building sits on a site area of 493.6 sqm (5,313 sq ft) with a 999-year lease from 1827. The site is zoned for commercial use with a plot ratio of 15 with a maximum height of 50 storeys under the URA Master Plan 2019. (Find Singapore commercial properties with our commercial directory)
The indicative guide price of the building is $195 million, which translates to $2,447 psf per plot ratio based on the maximum gross floor area of 79,695 sq ft for the site. This is the first time that the owners of Grand Building have attempted a collective sale.
The 10-storey building was built in 1957 and was developed by Royal Group of Companies Ltd (not related to the property investment and hospitality company Royal Group, controlled by Ashok Kumar Hiranandani and his son Bobby, that owns the two adjacent buildings, Royal Group Building at 3 Phillip Street and Royal One Phillip at 1 Phillip Street).
The existing Grand Building has a total area of 22,303 sq ft with average floor plate of 2,100 sq ft. Over the past 20 years, there have only been three recorded transactions at Grand Building, based on caveats lodged with URA Realis. The latest was for the fourth floor strata unit that was sold for $3.8 million ($1,810 psf), based on a caveat lodged in Jan 2016.
In the 2019 Master Plan, URA announced a CBD incentive scheme to encourage rejuvenation of the CBD “as a 24/7 mixed-use district” not just for work, but live and play too. Raffles Place will retain its predominantly commercial character as the core area of the CBD, says Edmund Tie. Meanwhile, Robinson Road, Shenton Way and Tanjong Pagar will have a blend of mixed-uses.
Located in Raffles Place, Grand Building’s neighbours include landmark towers such as OCBC Centre, One Raffles Place, Republic Plaza and UOB Plaza as well as the upcoming CapitaSpring, a redevelopment of the former Golden Shoe Car Park.
“As commercial properties in Raffles Place are tightly held by the owners, Grand Building offers a rare and exceptional opportunity for investors to secure a commercial real estate at an affordable quantum in the Raffles Place within the CBD,” says Swee Shou Fern, executive director of investment advisory at Edmund Tie.
Swee sees interest from companies seeking to own a corporate headquarters with a strong presence in the core city centre with the potential for naming or signage rights for the building.
The tender for the site will close on Dec 7.
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