27 strata office units at 20 Cecil Street on sale for $100mil
These 27 units have a strata area of between 786 sq ft and 2,303 sq ft, which works out to an average price of $3,143 per sq ft (psf) based on the total strata area of around 31,979 sq ft. Image: PropNex
A portfolio of 27 strata office units spanning over four floors at 20 Cecil Street has been launched for sale with an indicative price of $100 million.
This works out to an average price of $3,143 per sq ft (psf) based on the total strata area of around 31,979 sq ft, revealed joint marketing agents PropNex Singapore and Savills Singapore.
Nestled at the junction of Church Street and Cecil Street, 20 Cecil Street is a mixed-use building comprising a 26-storey office tower sitting on top of a two-storey retail podium. The office building features a spacious pickup & drop-off point, grand double-volume lobby entrance and sheltered access to Raffles Place MRT Interchange Station. It is also near the Telok Ayer MRT Station.
Located at levels 4, 5, 9 and 17, the 27 units have a strata area of between 786 sq ft and 2,303 sq ft. Each of the units are generously spaced and come with regular, column-free layout as well as VRF air-conditioning system, allowing for independent unit operations.
The marketing agents noted that the units can be acquired individually or in bulk, with individual price starting from around $2.4 million.
“As multiple units can be amalgamated into one large office space where the configuration can be tailored to meet the needs of all business needs, we expect keen interest from family offices, high net-worth individuals, investors and end-users,” said Yap Hui Yee, Director of Investment Sales & Capital Markets at Savills Singapore.
“The investors will be attracted to the tenanted units with secure cashflow and strong tenant covenants. It is also attractive to the end-users who are looking to acquire office units with strategic location and excellent specifications,” she added.
PropNex Realty Associate Division Director Navin Bafna expects robust interest from both local and international investors eyeing to own a prime investment within the heart of Singapore.
“The strata units at 20 Cecil St present a rare investment opportunity for investors looking to buy Grade A offices within the 600 – 1,300 sq ft range. It is not often that you can find individual Grade A strata offices for sale within the CBD, let alone units of this size,” he said.
Jeremy Lake, Managing Director of Investment Sales & Capital Markets at Savills Singapore, explained that strata offices are popular among real estate investors because their deal size can be easily custom fit to match their budget.
“Typically, investors have the choice to buy individual units, multiple units, whole floors or even multiple floors. The transaction costs are also low compared with residential and the yields are higher than residential.”
He noted that 20 Cecil Street buyers can expect “net yields of around 3% to 3.5% while borrowing costs are lower and in the range of 1.75%”.
He added that buying interest from local and investors from Hong Kong have been returning as both are unfazed of the work from home trend and “recognise that high quality strata offices in Raffles Place are hard to come by”.
Source: CommercialGuru, 14 Oct 2020