Three strata commercial units at GB Building on Cecil Street up for sale at $69 mil
/ EdgeProp Singapore |
Three strata commercial units at GB Building (left) located at 143 Cecil Street, are on the market for an overall guide price of $69 million (Photo: Samue Isaac Chua/The Edge Singapore)
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SINGAPORE (EDGEPROP) - Three strata commercial units at GB Building, located at 143 Cecil Street, have been launched for sale by PropNex Realty through an expression of interest exercise with an overall guide price of $69 million.
The three units have a combined strata floor area of 31,086 sq ft, comprising a retail podium on the first and second floors which span 13,067 sq ft as well as office units on the third and eighth floors with strata areas of 12,594 sq ft and 5,425 sq ft respectively.
The retail podium and the eighth-floor office unit are up for sale with vacant possession while the third-floor office space is currently tenanted to two tenants — a service office and a law firm.
The three units were previously transacted in July 2021 for a total of $52.06 million, in a deal brokered by Knight Frank. The retail space on the first and second floors were sold for $25.48 million ($1,950 psf) while the office space on the third and eight floors changed hands for $18 million ($1,429 psf) and $8.58 million ($1,582 psf) respectively.
The properties are zoned for commercial use, meaning that both Singaporeans and foreigners are able to acquire them, with no additional buyer’s stamp duty or seller’s stamp duty payable. The commercial units can be purchased individually or collectively as a portfolio, as well as equity sale. (Find Singapore commercial properties with our commercial directory)
GB Building is a 26-storey office development with a three-storey basement car park for 105 vehicles situated at the junction of Cecil Street and McCallum Street. It has a 99-year leasehold land tenure commencing from October 1982.
The building is within walking distance to the Tanjong Pagar MRT station on the East-West Line and Telok Ayer MRT station on the Downtown Line, as well as the upcoming Shenton Way MRT station on the Thomson-East Coast Line.
“This portfolio presents a rare opportunity for investors to acquire the units for rental income or for own use by businesses, amid a gradually improving office space market,” says Navin Bafna, senior associate division director at PropNex.
Citing URA’s office rental index, Bafna points out rents of office strata commercial units at GB Building rose by 1.9% in 2021, reversing an 8.5% decline in 2020. “We think office rentals have likely bottomed and could continue to inch up this year,” he remarks.
“Meanwhile, the retail podium on Level 1 and 2 — among the largest single strata retail space in the CBD — is suitable for an anchor tenant looking to offer unique retail concepts or as a showroom or office space,” Bafna adds.
GB Building falls under the government’s CBD Incentive Scheme, which is aimed at encouraging the redevelopment of older buildings to mixed-used projects to rejuvenate the CBD.
Subject to conditions, a higher gross plot ratio for the conversion of existing office developments to hotel and residential use will be allowed under the CBD Incentive Scheme.
“The three strata units have a total share value of 20.8%, which is a substantial stake in the development. This means that the successful buyer of the portfolio will have a certain level of influence should the owners of the building decides to put GB Building up for collective sale to realise its untapped potential arising from the CBD Incentive Scheme,” Bafna notes.
The expression of interest exercise for the three strata units will close on May 7.
Check out the latest listings near GB Building, 143 Cecil Street, Tanjong Pagar MRT station, Telok Ayer MRT station, Shenton Way MRT station
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