Strata office floor at Suntec Tower 1 for sale at $41.8 mil

The office floor on the 31st storey comprises three units which are fully tenanted until October 2025 (Photo: PropNex)

SINGAPORE (EDGEPROP) - An entire office floor on the 31st storey of Suntec Tower 1 has been put on the market with a guide price of $41.8 million. According to the exclusive marketing agent PropNex, the property comprises three individual strata titles and is available for sale via private treaty. At a combined strata area of 12,282 sq ft, this works out to a guide price of $3,403 psf.

The office units have a 99-year leasehold from 1989, with a remaining lease of about 64 years. They are fully tenanted until October 2025, providing immediate monthly rental income of more than $130,000, says Henry Lim, associate district branch director of PropNex. The tenant has expressed interest in extending the lease, he adds.

The three strata units are between 3,735 and 4,758 sq ft. Lim notes that the incoming owner has the flexibility to keep the whole floor as it is, or divest the units separately in the future.

Foreigners and companies are eligible to purchase commercial property without paying for additional buyer’s or seller’s stamp duty.

Based on URA caveats, the office units were purchased in June 2011 at $30.27 million. The first unit measuring 4,758 sq ft was bought at about $11.7 million. The second unit of 3,735 sq ft was purchased at $9.2 million, while the third unit occupying 3,789 sq ft was transacted at $9.34 million. All three units were transacted at $2,465 psf based on floor area.

Suntec Tower 1 is one of five office towers in the Suntec City development on 7 Temasek Boulevard. The development also comprises a retail mall and convention centre. Located within the CBD, it is served by three MRT lines via the Esplanade, Promenade and City Hall MRT Stations.

This is the second office floor at Suntec Tower 1 that has been put up for sale this month. On July 10, a full strata office floor on the 27th storey was put up on the market at an indicative price of $42.8 million. With a floor area of 12,045 sq ft, this translates into a guide price of $3,553 psf. JLL is marketing the office floor via an expression of interest exercise that closes on Aug 20.

So far this year, the development has seen a total of five transactions ranging between $3,200 psf and $3,817 psf, based on caveats lodged.

The most recent transaction was in June, when a 3,079 sq ft strata office unit on the 37th floor changed hands for $11.5 million, or $3,736 psf.

Lim says that Suntec City strata office spaces, particularly high-floor units, tend to enjoy strong demand from investors and occupiers due to their central location, wide commercial offerings on-site and accessibility.