THE landmark Central Provident Fund (CPF) Building in Robinson Road is up for sale – and the price tag could well be more than $450 million.
The spokesman added that the board, which will put up the building for sale by tender between July and September, has signed a long-term lease agreement to rent space at Novena Square towers A and B.
The sale is the latest in a move begun in 2008 for government offices to move out of the CBD and release space there for the private sector.
The CPF Building at 79 Robinson Road is 47 years old. Its 46 storeys have a net lettable area of more than 300,000 sq ft. The site has 52 years of its 99-year lease left, according to brokers.
Market watchers estimate that the building should fetch more than $450 million – or more than $1,400 per sq ft – based on its remaining lease and available space.
However, the buyer will have to pay development charges – fees to intensify land use – if it decides to tear down the building and build a new one to maximise its allowable gross floor area of 606,000 sq ft.
Additional charges for a lease top-up to 99 years could also be levied. The likely price tag is expected to draw property funds and developers.
The last major commercial property deal was the 50-storey AXA Tower in Tanjong Pagar just across the road, which changed hands for $1.18 billion last month from BlackRock to Perennial Real Estate Holdings.
Brokers said the timing of the sale is important and the CPF Board could get a higher price when demand for office space is still high.
The current office space crunch is expected to ease only after next year, when new office buildings like Marina One and Guoco Tower are ready.