Top Global puts ground floor of 15 Scotts Road up for sale at S$38.8 million

May 25, 2023

TWO strata retail units held by property group Top Global on the ground floor of 15 Scotts Road are up for sale at S$38.8 million.

The two adjacent ground floor units have a combined strata area of approximately 6,437 square feet (sq ft). At S$38.8 million, the indicative price translates to around S$6,000 per square foot (psf), according to marketing agent Cushman & Wakefield on Wednesday (May 24).

15 Scotts Road is a freehold nine-storey commercial building with retail space on the ground floor and eight floors of office space, in the prime Orchard Road area. Under the Urban Redevelopment Authority’s (URA) Master Plan 2019, the site is zoned commercial with a plot ratio of 4.9.

Top Global had in 2019 acquired 23 strata units at 15 Scotts Road, then called Thong Teck Building, for S$170 million, according to a previous report in The Business Times. The parcel of office and retail space was acquired from entities that Kenneth Low Si Ren, executive director of Allied Technologies, is believed to have acquired from RSP Architects’ late founder Albert Hong. Since the acquisition, Top Global has delisted from the Singapore Exchange and was privatised in 2021.

“Most of the units have been sold over the last two years and we are now left with just three units – the two ground floor units we are launching now and one strata unit on the second floor,” a Cushman & Wakefield spokesman said.

Office space at 15 Scotts Road has been steadily selling in the last year. The latest transaction was sealed in December 2022, when 5,770 sq ft of space on the third level was sold for S$23 million, or S$3,986 psf. In November 2022, space on the sixth level totalling 2,497 sq ft sold for S$10 million, or S$4,028 psf. Top Global previously sold eight strata office lots occupying about 8,643 sq ft to multiple buyers for S$31.93 million in total, or just under S$3,700 psf in September 2021.

Between February and December 2022, Top Global has sold office space on the third, sixth and eighth floors for a total of almost S$55 million, BT understands from market sources.

Last October, Cortina Holdings bought the fourth floor of 15 Scotts Road, from Singapore Institute of Management Group for S$49 million.

The two ground floor units now on the market are currently tenanted to a luxury home interior decor brand and a premium spa facility.

In March 2022, URA announced that strata subdivision of commercial developments will no longer be allowed in the Central Area, including Orchard Road and Scotts Road.

Cushman & Wakefield’s executive director of capital markets Shaun Poh said: “As strata subdivision of commercial developments in Orchard Road is being restricted, the opportunity to own a piece of prime investment asset such as 15 Scotts is rare.”

Islandwide prime retail rents have continued to trend up on the back of rising shopper traffic and tenant sales, according to Cushman & Wakefield’s Q1 2023 report.

“Orchard prime retail rents could lead growth in 2023, underpinned by a strong tourism recovery and limited new prime retail supply in the pipeline,” it said.

Poh added that efficient floor plates on the ground floor allow for tenants to cater to changing demands of consumers. Based on past records, an ancillary cafe change of use approval was previously supported by relevant authorities.

The expression of interest exercise for the ground floor space on offer will close on Jun 30.