Capitaland is said to be in exclusive negotiations to acquire Asia Square Tower 2 from Blackrock. Based on sources, the price under negotiations is above S$2,700 psf. The recent sales of Asia Square Tower 1 in June 2016, and the GLS in November 2016 won by IOI Properties @ S$1689 psf, demonstrate strong confidence in the office market in Marina Bay area. Tower 2 comprises of offices and the Westin Hotel. It was over 90% occupied as in end 2016.
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.