Formerly known as Singapore Airlines (SIA) building, the 35-storey office tower has been selected by CLSA Capital Partners to do exclusive diligence for purchase. The pricing is above S$530m or S$1800 psf based on net lettable area (NLA) of nearly 293,270 sqft. The maximum development potential has been tapped. The zoning of the site is commercial use with a balance lease tenure of 76.5 years.
Two commercial buildings, one in Middle Road and the other in Robinson Road, have been put up for sale by tender.
Both have retail space, and are near MRT stations.
One of the buildings, a 35-storey office tower at 77 Robinson Road, has a total net lettable area of about 294,000 sq ft, including 6,018 sq ft of retail space on the prime street level and 180 carpark spaces.
The property already has tenants, including Adidas Singapore and DVB Bank.
DTZ said in a statement yesterday that potential buyers could increase the property’s value by renovating office lobbies, common areas, and expanding the retail area.
It said: “Given the rejuvenation underway in the Robinson Road-Shenton Way precinct, this is an opportune time to carry out asset enhancement initiatives.”
DTZ noted that OUE Downtown and AXA Tower are undergoing renovations, and the upcoming Tanjong Pagar Centre and Frasers Towers “will inject even more vitality”.
DTZ will accept submissions of expression of interest until Oct 15.
The other commercial building up for sale is the nine-storey The Prospex, which sits “right in the heart of Bugis”, at the intersection of Victoria Street and Middle Road.
The site at 108 Middle Road is near Bugis MRT station, Bugis Junction and the National Library.
The building, which has a retail podium of two floors, has a site area of about 5,300 sq ft, with an approved gross floor area of about 41,800 sq ft.
Strata subdivision, with a combined area of about 30,800 sq ft, has been approved.
Mr Andrew Moore, chief executive of property fund management Pamfleet Group, noted that there has been tenant interest to rent the office space at about $8 per sq ft, while the retail space could command rents of more than $25 per sq ft.
Mr Jeremy Lake, CBRE’s executive director of investment properties, said: “We have observed that all Central Business District (CBD) building transactions over the past year are in excess of $200 million, and it is rare for one to be able to purchase a whole building in the CBD in the region of $80 million.”
He noted that in the light of recent keen interest in whole commercial buildings, “we expect this property to attract interest from both local and foreign buyers”.
The expression of interest for the Middle Road development will close at 3pm on Oct 23.