March 07, 2022
SINGAPORE, 07 March 2022 – PropNex Realty, Singapore’s largest real estate agency has launched an Expression of Interest (EOI) exercise for the sale of three strata commercial units at GB Building, located at 143 Cecil Street in the heart of the central business district (CBD). The portfolio of three strata units – exclusively marketed by PropNex - has an overall guide price of $69 million.
The three commercial units have a combined strata floor area of 31,086 sq ft. They comprise a retail podium on the 1st and 2nd floor which spans 13,067 sq ft, as well as office units on the 3rd and 8th floors with strata areas of 12,594 sq ft and 5,425 sq ft, respectively. The retail podium and the 8th floor unit are put up for sale with vacant possession, while the 3rd floor office space is currently tenanted to two tenants – a service office and a law firm.
Given its prime location in the Downtown Core Planning Area in the city centre, GB Building enjoys easy access to a wide range of amenities and has excellent transport connectivity. It is within walking distance to the Tanjong Pagar MRT station on the East-West Line and Telok Ayer MRT station on the Downtown Line, as well as the upcoming Shenton Way MRT station on the Thomson-East Coast Line. The building has a 3-storey basement car park for 105 vehicles.
GB Building, a 26-storey office development is prominently situated at the junction of Cecil Street and McCallum Street – with a double frontage on both streets. It has a 99-year leasehold land tenure commencing from October 1982.
Navin Bafna, Senior Associate Division Director at PropNex, said, “Sizable strata commercial units in the CBD are usually tightly held and there is limited supply available for sale. This portfolio presents a rare opportunity for investors to acquire the units for rental income or for own use by businesses, amid a gradually improving office space market. According to the Urban Redevelopment Authority’s office rental index, the rents of office space rose by 1.9% in 2021, reversing an 8.5% decline in 2020. We think office rentals have likely bottomed and could continue to inch up this year. Meanwhile, the retail podium on Level 1 and 2 – among the largest single strata retail space in the CBD - is suitable for an anchor tenant looking to offer unique retail concepts or as a showroom or office space.”
GB Building falls under the government’s CBD Incentive Scheme, which is aimed at encouraging the redevelopment of older buildings to mixed-used projects to rejuvenate the CBD and reposition the city as a vibrant place to live and play in. Subject to conditions, a higher gross plot ratio for the conversion of existing office developments to hotel and residential use will be allowed under the CBD Incentive Scheme.
“The three strata units have a total share value of 20.8%, which is a substantial stake in the development. This means that the successful buyer of the portfolio will have a certain level of influence should the owners of the building decides to put GB Building up for collective sale to realise its untapped potential arising from the CBD Incentive Scheme,” Mr. Bafna noted.
As the properties are zoned for commercial use, both Singaporeans and foreigners are able to acquire them, with no additional buyer’s stamp duty or seller’s stamp duty payable. The commercial units can be purchased individually or collectively as a portfolio, as well as equity sale.
The EOI exercise for the three strata units will close on 7 May 2022.
February 24, 2022