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Thread: Two commercial buildings in prime areas up for tender

  1. #1
    Join Date
    Oct 2011
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    Default Two commercial buildings in prime areas up for tender

    http://www.straitstimes.com/business...-up-for-tender

    Two commercial buildings in prime areas up for tender

    A 35-storey office building in Robinson Road (above) and The Prospex (left) in Middle Road, both in prime areas, are expected to attract keen interest.

    Sep 3, 2015

    Rachael Boon


    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.

    A 35-storey office building in Robinson Road (above) and The Prospex in Middle Road, both in prime areas, are expected to attract keen interest.

    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.

  2. #2
    Join Date
    Oct 2011
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    Default Prospex owner selling whole building instead of strata sales

    http://www.businesstimes.com.sg/real...f-strata-sales

    Prospex owner selling whole building instead of strata sales

    Move to sell entire building through EOI comes amid recent sluggish office strata launches in the market

    Lynette Khoo

    [email protected]@LynetteKhooBT

    Sep 3, 2015


    THE Prospex, a nine-storey commercial building in Bugis, has been put up for sale by private real estate investment firm Pamfleet Group with an asking price of S$80 million or S$1,913 per square foot (psf) of gross floor area.

    The move to sell the entire building through an expression of interest (EOI) rather than to stick to the original plan of selling strata units came amid recent sluggish office strata launches in the market.

    Approvals have already been granted for strata sub-division for a combined area of 30,807 sq ft. The site spans about 5,264 sq ft with an approved gross floor area of 41,806 sq ft. But CBRE, the sole marketing agent for the property, said that the change of plans followed unsolicited requests for the purchase of the whole building from owner-occupiers and investors, both local and overseas.

    According to CBRE executive director for investment properties Jeremy Lake, the response was strong from industries that included legal, design, corporate communications, IT, education, and finance.

    Pamfleet group chief executive Andrew Moore said that since the completed facade was unveiled close to the property obtaining its temporary occupation permit, there has been strong interest from companies looking to use it as a corporate headquarters.

    "The new buyer could also explore using part of the premises for owner-occupation and lease out the rest of the space, or even make use of the subdivided titles to sell some units individually," Mr Moore said.

    No space is leased out yet in the property, though Pamfleet said that there has been tenant interest to rent the office space at about S$8 psf, and the retail space could see rents in excess of S$25 psf.

    After Pamfleet acquired The Prospex - its first property here - at S$45 million in April 2013, it made major alterations and additions to the building to achieve the current modern look. The renovations were completed last month and the EOI closes on Oct 23. The 99-year leasehold property has a balance tenure of 58 years. It has two levels of retail podium and is located at the intersection of Victoria Street and Middle Road, hence boasts high visibility and proximity to the Bugis MRT station. It is near the Bugis Junction, the InterContinental Hotel, the National Library and integrated developments South Beach and DUO.

    Mr Lake noted that all CBD buildings transactions over the past year have been in excess of S$200 million, making this property in Bugis a "valued opportunity to purchase a commercial building in the CBD at an attractive price".

    Elsewhere, owners of two adjacent buildings at Cecil Street - ICS Building (the former Aviva Building) and Cecil House - were said in July to be mulling putting up their properties for sale in view of the struggling strata-sales market, which has been in a decelerating mode.

    Slowing rental growth, toppish prices, and competition for buyers have plagued the 259-unit GSH Plaza (the former Equity Plaza) in Raffles Place where some 60 units are said to be sold since April with 11 caveats lodged at a median price of S$3,082 psf, and the 86-unit Crown at Robinson (the former Chow House) at Shenton Way where eight caveats have been lodged at a median S$3,528 psf.

    But Colliers International is expecting transactions to pick up in the second half, led by the release of new units in these two projects and possibly the launch of Woods Square in Woodlands. About 48 caveats were lodged for new strata-titled office sales in the second quarter, up from eight caveats in the first quarter.

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