SINGAPORE (EDGEPROP) - Three contiguous floors of strata office space at Plus Building, an office tower at 20 Cecil Street in the CBD, are up for sale. Each floor has a gross floor area (GFA) of 11,216 sq ft, which means the combined space makes up about 33,648 sq ft.

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Colliers and PropNex International have been jointly appointed to market the property. According to a Jan 9 joint press release by the firms, the asking price for each floor is between $36 million and $37 million. The offices have a floor-to-ceiling height of 2.8m as well as floor-to-ceiling windows offering a 180-degree view of the city.

Plus Building is a Grade-A office development in Raffles Place. The 28-storey tower has a 99-year leasehold tenure with effect from Dec 7, 1989. It has dual frontages along Cecil Street and Church Street, together with direct sheltered access from the Raffles Place MRT Interchange Station. It is also a two-minute walk to the Telok Ayer MRT Station.

Tang Wei Leng, managing director and head of capital markets & investment services, Singapore, at Colliers, calls the property a “rare opportunity” to acquire strata office space in the CBD, which is a tightly held market. “Currently, the market is experiencing a tight supply of high-quality office stock in the core CBD due to a lack of new supply and withdrawal of existing stock for redevelopment,” she explains. Supply has also been further restricted by the change in government policy to restrict strata subdivision of commercial assets in the central region.

Ismail Gafoor, executive chairman and CEO of PropNex, concurs, adding that vacant full-floor plates in Grade-A offices in the CBD are hard to come by, particularly in the coveted Raffles Place area. “We have seen strong demand from family offices and tech companies that are relocating their offices to Singapore and are seeking vacant units for their own use, with Raffles Place being their top priority,” he observes.

Tang highlights that tight supply will support a strong rental upside for the property, noting that rents for premium and Grade-A offices in the core CBD grew 5.9% y-o-y in 2022. “Investors should consider purchasing multiple floors to enjoy long-term capital appreciation or to look forward to the prospect of a collective sale in the future, where they would have more significant voting rights in this development,” she says.

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