Freehold strata office floor at 15 Scotts for sale at $52.5 mil
/ EdgeProp Singapore |
15 Scotts (Picture: CBRE)
SINGAPORE (EDGEPROP) - A strata office floor at 15 Scotts, a freehold commercial development in the Orchard Road precinct, is up for sale via an expression of interest exercise at an indicative price of $52.5 million. CBRE is the exclusive marketing agent for the property.
The strata office floor spans 13,734 sq ft, representing approximately 12.7% of the total strata area, or 12.6% of the total share value of the development. Based on the floor area, the indicative price works out to $3,822 psf.
Formerly known as Thong Teck Building, 15 Scotts is a nine-storey strata-titled commercial development with a 40m-wide frontage along Scotts Road, off Orchard Road. The development underwent extensive asset enhancement works, including a refresh of the common areas and enhancement of the façade, which was completed in 2015. (Find Singapore commercial properties with our commercial directory)
The property is within walking distance of the main Orchard Road shopping belt and Orchard MRT Station on the North-South Line. The station will also become an interchange for the Thomson-East Coast Line by end-2022.
Recent resale transactions at 15 Scotts show that units at the development have transacted at prices between $3,693 to $3,988 psf (Source: EdgeProp Research)
Clemence Lee, executive director of capital markets, Singapore, at CBRE, notes that freehold strata office floors remain highly sought after by both owner-occupiers and investors, given that such assets are tightly held and rarely made available. “Due to their rarity, there have been no transactions in the last four years involving entire strata office floors in Orchard Road,” he says.
The last strata office floor transaction occurred in October 2017, when the entire 18th floor at Tong Building was sold for $23.3 million to Top Global. Before that, the entire 13th floor at Tong Building was sold in May 2016 to the family office of luxury watch and jewellery house Chopard for $25.5 million.
Lee anticipates the trend to persist, given that Orchard Road is among the key areas where strata subdivision is no longer allowed in existing developments and on redevelopment sites. “This ban will further restrict the supply of good-quality freehold strata offices available for sale and existing good-quality strata office developments such as 15 Scotts will stand to benefit,” Lee adds.
15 Scotts is also expected to benefit from the ongoing rejuvenation of the Orchard Road precinct, which Lee believes will help support strong rental and capital appreciation for units at the development.
The expression of interest exercise for the strata office floor at 15 Scotts will close on Oct 6 at 3pm.
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