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Three strata office units at Suntec City for sale at $57.1 mil

By Nicholas Lam

/ EdgeProp Singapore |

August 13, 2024 2:57 PM SGT

The portfolio comprises the entire 38th floor and two other strata units on level 16 of Suntec Tower 1. (Photo: CBRE)

A portfolio of three strata office units in Suntec Tower 1 has been put on the market with a guide price of $57.1 million. The portfolio comprises the entire 38th floor and two other strata units on level 16.

The 38th floor unit spans about 10,097 sq ft and has a guide price of $33.8 million. This translates to about $3,350 psf. The other two units span 3,498 sq ft and 3,897 sq ft with a guide price of $11 million ($3,145 psf) and $12.3 million ($3,156 psf) respectively. The office units have a 99-year leasehold tenure from 1989, with a remaining lease of about 64 years.

According to CBRE, the exclusive marketing agent for the properties, the sale will be conducted through an Expression of Interest (EOI) exercise. The properties can be sold together, or individually. All three units are also currently owner-occupied and will be sold with vacant possession or on a short-term leaseback agreement.

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

“This portfolio presents an opportunity for investors to ride on Singapore’s resilient office sector with an established asset that has a proven track record,” says Mr Michael Tay, head of capital markets in Singapore at CBRE.

He adds that strata offices in prime locations with excellent specifications such as Suntec City can only become more valuable following URA’s 2022 restriction on strata subdivision in future commercial developments within key locations in the Central Area.

Based on URA caveats, the 38th floor of Suntec Tower 1 was last purchased in March 1996 for about $18.3 million ($1,817 psf). The other two units on the 16th floor were last purchased together in June 2001 for about $9.2 million. With a combined floor area of about 7,395 sq ft, this works out to $1,250 psf.

Recent office transactions at Suntec City, tabulated by EP Buddy. (Source: URA, EdgeProp Singapore)

According to CBRE, strata office units in Suntec City have been trading at an average of $3,411 psf over the past 12 months. These include the sale of a 3,079 sq ft unit on the 37th floor of Suntec Tower 1 for $11.5 million ($3,736 psf) in June. A different 37th floor unit spanning 2,196 sq ft at Suntec Tower 1 was sold for $8.09 million ($3,684 psf) in March.

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