20 Cecil Street, with four contiguous floors of strata-office units up for sale (Credit: CBRE)
SINGAPORE (EDGEPROP) - A portfolio of Grade-A strata office units at 20 Cecil Street is up for sale via an expression of interest (EOI) exercise, according to a May 11 press release by CBRE. CBRE is the exclusive marketing agent for the deal.
See also: Two freehold strata F&B units at Oxley Tower for sale at $21 mil
The portfolio comprises 22 unts across four contiguous levels, with a total area of 24,477 sq ft. It has a guide price of $75.88 million, which works out to $3,100 psf based on the strata area. CBRE says the units have a 2.9m floor-to-ceiling height and include specifications such as full curtain window and air-conditioning which allows for independent unit operation.
20 Cecil Street is a 28-storey Grade-A office building with dual frontages along Cecil Street and Church Street. It has a 99-year leasehold tenure and is zoned for commercial use, meaning that both locals and foreigners are eligible to purchase the units up for sale. In addition, no additional buyer’s stamp duty (ABSD) or seller’s stamp duty will be imposed on the transaction. The building has direct sheltered access from Raffles Place MRT Station (on the East-West North-South Lines). (Find Singapore commercial properties with our commercial directory)
Michael Tay, head of capital markets, Singapore, at CBRE, expects strong interests from both investors and owner-occupiers for this portfolio, “given the building’s hi-specs quality, accessibility and strategic location”.
The new owner also has the option to lease out the units, which will achieve a rental yield of around 3.5% — higher than residential yields, Tay adds.
Meanwhile, Joshua Giam, associate director of capital markets, Singapore, at CBRE, points out that prime strata office space will be increasingly hard to come by, in view of the government’s move to restrict strata subdivision of commercial properties in the central areas.
“With the recent announcement of the increase in residential ABSD in December 2021, we have been receiving a lot more enquiries for commercial assets, as investors are optimistic on the long-term potential for both rental increase and capital appreciation,” he adds. Giam believes the portfolio will be a good opportunity for family offices, investors or owner-occupiers. The EOI exercise will close at noon on June 14.
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