Thye Hua Kwan entities granted options to buy 2 office floors at Solitaire on Cecil for S$103.2m

Investing in freehold prime S’pore offices aimed at providing sustainable rental income to the charities; purchases subject to regulatory nods

May 16, 2023

THREE entities affiliated to the Thye Hua Kwan (THK) Group of Charities are in the early stage of buying two office floors at the freehold Solitaire on Cecil for about S$103.2 million.

The THK entities are buying Levels 10 and 14 in the 20-storey development that will come up on the former PIL Building site. The predominantly office project, at 148 Cecil Street, is slated for completion around 2027.

Options to purchase the two office floors, each comprising eight strata units totalling 12,465 sq ft, were granted to the THK entities in late April.

Thye Hua Kwan Moral Charities (THKMC) is buying all eight strata units on Level 10.

On level 14, Ang Mo Kio-Thye Hua Kwan Hospital (AMK-THKH) is buying seven strata units and Thye Hua Kwan Holdings, the remaining unit on the floor.

Enough investments in bonds and equities

THKMC and AMK-THKH have Institution of Public Character (IPC) status.

When contacted by The Business Times, Phillip Tan, chairman of the joint investment committee of THKMC and AMK-THKH, said : “The investment committee believes that these two organisations have enough investments in bonds and equities. To widen their spread of investments, the committee has recommended that the respective boards of these two IPCs invest in freehold Singapore offices in prime areas with prospects of good sustainable rental income.”

Options to purchase the offices at Solitaire on Cecil will be exercised by the two organisations, subject to approval from the relevant authorities, Mr Tan added.

Exercise of the option to purchase the unit by Thye Hua Kwan Holdings is subject to approval from the Accounting and Corporate Regulatory Authority, said Lawrence Ng, CEO of Thye Hua Kwan Moral Society (THKMS). Thye Hua Kwan Holdings is a nominee company of THKMS.

Social service

THKMC’s activities include a meals-on-wheels service for the aged and sick, early intervention for children with developmental needs, active ageing centres and family service centres.

AMK-THKH is a community hospital with 370 beds.

CBRE is understood to have brokered the sale of levels 10 and 14 at Solitaire on Cecil.

Solitaire on Cecil will have dual frontage on Cecil and Stanley streets. The project is being developed by a tie-up between TE Capital Partners and LaSalle Investment Management.

The 127-metre high project will have about 190,000 sq ft of office space, and two strata restaurant units at street level.

Assuming the THK entities receive regulatory nods to purchase levels 10 and 14, a total of eight of the development’s 15 office floors would be sold.

Except for level 6, which went for S$3,865 psf, the other seven floors have fetched above S$4,100 psf. The highest price of S$4,325 psf was fetched for the penthouse office floor, on level 20. The two restaurant units have been sold. The smaller unit of 936 sq ft, which faces Cecil Street, fetched about S$5,400 psf. The larger unit of 1,410 sq ft facing Stanley Street has sold for nearly S$6,000 psf.

https://www.businesstimes.com.sg/pro...e-cecil-s1032m