Tag Archives: Downtown

Samsung Hub Office sold at S$3280 psf

The 20th floor of the 999-year-leasehold Samsung Hub office tower is sold at S$43.07 million or S$3,280 psf based on the strata area of 13,132 sq ft. Standard Commodity Trade Centre Pte Ltd is selling the space on a vacant possession basis to Lei Shing Hong Properties (Singapore). The buyer plans to occupy the space for its own use.

The company is part of Hong Kong-based Lei Shing Hong group, which is involved in businesses ranging from retailing premium cars, trading and securities brokerage, to property development and investment. The S$3,280 psf fetched for the 20th floor is identical to that for the 21st level back in 2014.

Office landlords in CBD call the shots amid crunch

The pendulum is swinging in favour of office landlords in the third quarter, with rents and capital values continuing to climb, said consultancy Colliers International yesterday.

It noted that most areas – called micro-markets – are experiencing a worsening supply squeeze that has generated occupancy rates of 95 per cent and kept rents rising for 18 months.

“The tight market has given landlords greater pricing power over tenants and we are seeing a growing divide between the type of spaces tenants desire in relation to affordability and landlords’ rental expectations,” said Mr Marcus Loo, the firm’s executive director of office services.

Raffles Place and New Downtown are the market’s red-hot zones.

Monthly rent for premium-grade offices shot up 6.1 per cent from the second quarter to the third to $11.67 per sq ft (psf) a month, the highest quarterly growth in three years, while Grade A office rents rose 2.9 per cent to $10.25 psf.

Rents for Grade A offices in other areas of the Central Business District (CBD) have expanded between 0.4 per cent and 2.9 per cent quarter on quarter and are heading for the “psychological rental benchmark level” of $10 psf a month, said Colliers.

Overall, the average occupancy rate for completed premium-grade and Grade A offices in the CBD has held firm during this quarter, at 96.5 per cent – the highest in six years.

The average occupancy rate is 97.2 per cent in Orchard Road, 97.8 per cent in the city fringe and 98.8 per cent in the suburbs.

While there were fewer transactions of strata-titled office units due to the Hungry Ghost Festival, the market for sales en bloc has been “bustling with activity” in this quarter.

Anson House in Tanjong Pagar sold for $172 million, Straits Trading Building in Battery Road reportedly went for $450 million and three levels of GB Building in Cecil Street sold for about $31.7 million in total.

The prices at these sales pushed up capital values, which are up 2.2 per cent for premium-grade offices and by 1.9 per cent for Grade A ones in the Raffles Place and New Downtown.

Ms Chia Siew Chuin, director of research and advisory at Colliers International, said rents of premium-grade office space in this zone are expected to grow close to 15 per cent for the full year, with rents in overall CBD grades A and B office space growing up to 10 per cent. She said capital values for premium and Grade A offices in Raffles Place and New Downtown will grow about 5 per cent this year.

The report also noted that more tenants have been asking for longer lease terms of, say, five years, with an option to extend for another five, or six-plus-six- year terms, with built-in rental review terms.

“(This) provides tenants with more stability and allows them to spread their asset depreciation for the longer period of time…

“However, longer lease terms do not generally equate to lower rents. Landlords may factor in potential rental upside if they are tied to a longer period of time,” said Mr Loo.

GB Building floors for sale

http://www.businesstimes.com.sg/premium/singapore/three-gb-building-office-floors-sale-20140722

ABOUT 16,000 square feet of office space spanning three contiguous floors in GB Building in the Central Business District (CBD) have been put on the market for between S$32.1 million and S$33.7 million, or between $2,000 and $2,100 per square foot.

Each floor of the space, occupying the 20th to 22nd storeys of the Cecil Street building, ranges from 5,210 sq ft to 5,425 sq ft in size, is rectangular and column-free.

DTZ Debenham Tie Leung (SEA) is marketing the property, which is being sold with vacant possession.

GB Building comprises a 23-storey office tower atop three storeys of commercial space and has 67 years left on its lease.

It has three levels of basement carpark lots and is within walking distance of Tanjong Pagar MRT station on the East-West Line and the upcoming Shenton Way MRT station on the Thomson Line.

DTZ investment advisory services director Tan Chun Ming said that the property was a “rare opportunity” for owner-occupiers.

Given that the space is strata-titled, he expects keen interest from a range of investors looking to capitalise on the rising rental rates in the CBD.

A DTZ report has noted that average gross monthly rents in Marina Bay rose 6.5 per cent to S$12.25 psf in the second quarter from the first.

But average gross monthly rents for Shenton Way, Robinson Road and Cecil Street – older areas of the CBD – had stagnated at S$8 per sq ft.

Average office prices in those three areas inched up 0.2 per cent in Q2 from the previous quarter, supported by continued interest in strata-titled office units and en bloc office deals, as further rental increases are expected, said the report.

Based on caveats information from URA Realis, the top three strata floors of SBF Centre on Robinson Road, were transacted at an average price of S$3,069 psf in April. Last November, one strata floor at Eon Shenton on Shenton Way went at S$2,550 psf.

The expression of interest exercise for the GB Building space closes on Aug 21. Interested parties may submit bids for single or multiple floors.

BT: Inspiration behind MBFC

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THE recently released Urban Redevelopment Authority (URA) Master Plan 2013 highlights Marina Bay as the new financial and residential district in the urban city centre.

Currently, the Marina Bay Financial Centre (MBFC), which saw its second phase completed earlier this year, is the only development on the new Marina Bay site. Consisting of five buildings – two residential and three commercial, MBFC was designed as a landmark development, artistically merging the older part of the business district with future developments by Marina Bay.

Developed as a joint venture (JV) by Cheung Kong (Holdings), Hongkong Land and Keppel Land, MBFC was envisioned by the developers to provide a dynamic urban environment that would create a strong profile on the Singapore skyline.

To achieve this vision, international architectural firm Kohn Pedersen Fox Associates (KPF), the lead designers behind MBFC, incorporated the idea of a crystalline language using sloping surfaces and slanted tops to give a sense of layering and depth.

KPF architects Robert Whitlock and Bruce Fisher explained that while the design team started out with a more dramatic concept for the buildings, the concepts had to be reconciled with both the height limits of the area and the fundamentally commercial nature of the development.

“The tops of the buildings in the original design were conceived with steep angles and poetic expressions,” explained Mr Whitlock, design principal at KPF, during an interview with BT at the firm’s New York head office.

“From an architectural point of view, there was a lot of pressure to balance the architectural expression, in terms of an iconic set of buildings, with numerous client requirements, particularly efficiencies, that tempered building forms,” said Bruce Fisher, director, KPF.

Owing to the massive scale of the MBFC projects, which spans a four hectare site – synonymous in scale to London’s Canary Wharf, the KPF team worked closely with two local architectural firms – DCA for Phase 1 and A61 for Phase 2 – to ensure the project kept to its tight deadline and met all the requirements.

“Our role for the project was to advise on local authority guidelines and how to achieve the design intent while complying with the stringent requirements. We were more involved in the layout of the residential units based on the developer’s complex unit mix, working closely with KPF to fit the units within the building form and external envelope,” explained Khoo Poh Bin, director, DCA.

The A61 team, on the other hand, worked more closely on the commercial towers given their past expertise on such projects, including working on One Raffles Quay with KPF.

Although the tasks were distributed, the team essentially worked as one to ensure coherence and continuity in fulfilling the developers’ vision. As Mr Khoo noted: “The 12-hour time difference meant work continued without interruption 24/7. We would finish our part in Singapore and update KPF in New York for them to carry on and vice versa, which proved to be an ideal arrangement for the developer.”

According to Mr Whitlock, the developers had very exacting guidelines on how they envisioned the buildings to look and perform with full glass façades and no curved elements in the form.

“The JV’s brief was based entirely on the perceived needs of the financial services community, with a requirement for very efficient floor plates and unlimited views. The horizontal sunshades gave us a way to provide some variation and environmental performance to the facades while delivering floor to ceiling glass, edge to edge,” said Mr Whitlock.

Furthermore, given that MBFC was primarily a commercial venture, there was no need for it to be as dramatically configured, per se, added Mr Fisher.

The workhorse

“The MBFC is really the incredible work horse of Singapore and perhaps, because of that, a little less expressive than say the casino or the Esplanade,” Mr Fisher said.

The URA, too, had a list of requirements. For one, they required that the buildings’ glass exterior meet a minimum glazing level and not have a green tint.

“One Raffles Quay and the NTUC building, which create a sort of gateway to Marina Bay, were clad in green glass and the URA requested a different expression for the MBFC project so that there would be more visual diversity to the area,” commented Mr Whitlock.

Additionally, URA’s guidelines stipulated that there be a street wall, at least 19 metres in height, surrounding most of the site, to create continuity between adjacent development sites. “At heart, this is an urban planning gesture that helps to provide a sense of defined space,” explained Mr Fisher.

However, based on the design of the site, the architects felt that a solid wall would not fill the space adequately, and hence offered alternative solutions.

The design team proposed that the site have 19-metre canopies, instead of a wall, to allow for an open, less restrictive, appearance. “With the canopies, we ended up with a structure that defines the street edge but is very porous,” said Mr Fisher.

“The wall requirement was not working for the architecture, so we had to present alternatives. The URA gave us guidelines, but as with most zoning guidelines, the authorities cannot always predict exactly how guidelines will translate into the final build-out,” he continued. “It is really up to the architects to take this abstract concept and challenge it, to achieve the best results for all parties.”

In consideration of the different requirements – both from the developers and the URA, the architects eventually altered the designs to showcase a lesser degree of dramatic expression to allow for more efficient and dense buildings that complemented the surrounding architecture.

In addition, as Mr Whitlock explained: “The MBFC buildings needed to be more than what you see in the old city where you have a lot of distinct buildings coming together to represent an urban identity, just by virtue of proximity and density.”

“We were trying to find a common architectural language that is appropriate for both commercial and residential uses to allow the architecture of each building to be a little bit subordinate to the collective identity.”

Although the architects faced challenges in trying to deliver a design that met demands of both the developers and the URA, the MBFC site was an area they were extremely familiar with.

Back in 2001, KPF was independently commissioned by Mapletree Investments to conduct studies on the type of programmes and density that should be put on the Marina Bay site.

This was because the master plan that had been in place for a decade needed revision, based on a new understanding within the URA on how the landfill site might be developed to meet today’s needs.

“We did a study for them to look at the application of a mixed-use model that would bring multiple uses to the site and make the most of its adjacency to both Marina Bay and the traditional banking centre,” explained Mr Whitlock.

According to KPF, Mapletree used the study to carry out their own research internally before releasing tender conditions to bidders in 2003, for the Marina Bay white site.

The development guidelines eventually released to interested bidders took KPF’s preliminary studies to an entirely new level.

“There is a huge leap from deciding that you want to develop a site to establishing a framework that will set up the proper moves for later development,” said Mr Whitlock.

Balancing all needs

While KPF’s underlying concepts of connectivity to the traditional city centre, provision of public open space and introduction of the mixed use model were implemented in Mapletree’s revised plans, the main difference was the requirement for a higher density area and for the site to be fully integrated with all of the city’s other systems and infrastructure.

With the new guidelines they received, KPF spent a great deal of time contemplating the layout of the buildings to allow for architectural expression, without compromising on the practical and utilitarian needs of the site. “A traditional master plan development might have placed the buildings as squares on a chessboard where everything lines up. We chose however to subtly rotate the towers to maximize views in all the buildings and relieve the feeling of density on the site,” Mr Whitlock said.

However, despite the stringent guidelines and myriad requirements, the architects felt that such a process enables better architecture.

As Mr Whitlock noted: “When you work on a project like this, you start to have a different understanding of architecture. Typically, an architect is trying to design a building that is built on a site. They want it to be beautiful and expressive of both the owner’s and architect’s aspirations. With any luck, it tries to find some clues with the local context so it does not feel like it has been dropped from a spaceship.

“But when you have to design a whole city within a city in a way where it has some richness, some subtlety, and an endless play between the built environment and public spaces, all of which must relate to the rest of the city – it takes things to an entirely different level.”