IOB Building up for sale, owner expect offers in excess of $1,800psf
It is situated right across Telok Ayer MRT station on the Downtown Line, near Raffles Place MRT interchange and the upcoming Shenton Way MRT station on the Thomson-East Coast Line.
IOB Building, a six-storey office building with two levels of basement carpark at 64 Cecil Street, has been put up for sale, revealed marketing agent Knight Frank Singapore.
With a 99-year leasehold tenure that started in May 1983, the property sits on an 891.8 sq m (9,599 sq ft) site that is zoned “commercial” under the 2019 Master Plan with an allowable gross plot ratio of 12.6.
The site can be redeveloped into a new 15-storey office building with total gross floor area of around 120,947 sq ft, subject to the relevant authorities’ approval.
Knight Frank said it has submitted “an outline application for change of use to ‘residential with commercial at the first-storey’ and ‘hotel’” to URA, with a reply expected soon.
Located at the junction of Cross Street and Cecil Street, IOB Building is near various landmarks including CapitaGreen, Prudential Tower, Manulife Tower as well as upcoming development The Clan Hotel and CapitalSpring.
It is situated right across Telok Ayer MRT station on the Downtown Line, near Raffles Place MRT interchange and the upcoming Shenton Way MRT station on the Thomson-East Coast Line.
The owner expects offers in excess of $1,800 per sq ft per plot ratio (psf ppr), including the differential premium for the site’s intensification and extension of lease to a fresh 99 years.
“We believe that IOB Building presents a truly unique and rare redevelopment opportunity within the central business district (CBD) given the exceptional, tightly held commercial market in Singapore,” said Ian Loh, head of investment and capital markets (land, building & collective sales) at Knight Frank Singapore.
“The government has not placed any office sites on the confirmed list under its GLS programme – there is only one white site at Marine View under the Reserve List. As such, we expect the office supply in the CBD to remain low, until 2025.”
The tender for IOB Building closes on 24 March.
Source: CommercialGuru, 18 February 2020