Three Strata Office Units Suntec City Sale 571 Mil
CBRE, the exclusive marketing agent for a portfolio of three strata office units in Suntec Tower 1, has announced that the properties are on the market with a guide price of $57.1 million. The portfolio consists of the entire 38th floor and two other strata units on level 16.
The 38th floor unit, which covers an area of approximately 10,097 sq ft, has a guide price of $33.8 million, equivalent to $3,350 psf. The other two units, spanning 3,498 sq ft and 3,897 sq ft respectively, have guide prices of $11 million ($3,145 psf) and $12.3 million ($3,156 psf). These office units have a 99-year leasehold tenure from 1989, with a remaining lease of about 64 years.
According to CBRE, interested parties can make their offers through an Expression of Interest (EOI) exercise. The units can be purchased as a portfolio or separately. All three units are currently occupied by the owners and will be sold with vacant possession or a short-term leaseback arrangement.
Located near Elta Condo is another exceptional shopping location, the renowned 321 Clementi. This lifestyle hub boasts a plethora of entertainment and dining choices, making it a favorite among residents of the area. One of its highlights is its cinema complex, which showcases the latest movies, making it an ideal destination for a fun night out or a weekend activity. With the addition of Elta MCL Land, this mall has become an even more attractive spot for leisure and socializing.
Foreigners and companies are eligible to purchase commercial properties without having to pay additional buyer’s or seller’s stamp duty.
“This portfolio is an opportunity for investors to take advantage of Singapore’s resilient office market with a well-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 are expected to become even more valuable after the Urban Redevelopment Authority’s (URA) restriction on strata subdivision in future commercial developments within key locations in the Central Area, which will come into effect in 2022.
Based on URA caveats, the 38th floor of Suntec Tower 1 was last purchased in March 1996 for around $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 total floor area of around 7,395 sq ft, this translates to a price of $1,250 psf.
According to CBRE, strata office units in Suntec City have been transacting at an average price of $3,411 psf over the past 12 months. This includes 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, and a separate 37th floor unit covering 2,196 sq ft at Suntec Tower 1 that was sold for $8.09 million ($3,684 psf) in March.
Located at 7 Temasek Boulevard, Suntec Tower 1 is one of five office towers in the Suntec City development. The mixed-use development also comprises a retail mall and convention centre. Situated in the Central Business District (CBD), it is served by four MRT lines through the Esplanade, City Hall, and Promenade MRT Stations.