Three floors at 105 Cecil Street The Octagon Singapore, have been launched for bulk sale via a tender.
This includes the prime retail unit at the ground floor and also two office floors in the 25-storey building.
At the S$43 million indicative price, the rate of the land is S$3,500 psf in case of the ground floor retail space and S$2,450 psf for the two levels of office space. This was announced by Cushman & Wakefield the marketing agent for the sale.
The total strata area for this sale is estimated to be 15,995 sq ft. The retail unit at the ground floor has 3,617 sq ft and the offices at level second and fourth level in the building have 6,189 sq ft of floor area each.
The retail unit is currently occupied by a fitness centre where as the two upper floors currently house two childcare centres managed by different operators.
The Octagon Singapore is well-located and falls in the intersection of Cecil Street and Boon Tat Street. The Telok Ayer and the Raffles Place MRT stations are nearby.
According to Cushman & Wakefield’s Executive Director of Capital Markets, Shaun Poh the demand for freehold strata office space and retail spaces is high, especially in the Central Business District.
The recently announced CBD Incentive Scheme which was announced as a part of the URA’s Draft Master Plan is also likely to rejuvenate and transform the order office buildings.
This has increased opportunity for older office buildings to cash in on the scheme.
Under this scheme URA shall increase the gross plot ratio for office properties in CBD area to encourage their conversion into mixed-use properties.
The aim is to increase vibrancy in CBD after dark with more residential properties and hotels coming in.
The scheme shall be applicable to Shenton Way, Anson Road, Cecil Street, Tanjong Pagar and Robinson Road areas.
It must also be mentioned that earlier in February; Murdaya family which controls the Central Cipta Murdaya, the Indonesian conglomerate bought three levels at The Octagon Singapore.
The purchase saw them picking Levels 14, 15 and 17 for close to S$45.5 million and the land rate paid was S$2,450 psf for the 18,568 sq ft strata area.
It had also bought Levels 9 and 10 for S$30.3 million paying a price of S$2,450 psf few months earlier.
According to Mr Poh while the five floors that were sold in the recent months weren’t fully occupied, the ones that have been put up are fully occupied including the retail unit at the ground floor.
He concluded by saying that ground floor retail space is hard to find for sale in CBD and this would increase interest in this sale.
The tender expertise for this sale closes on July 3 at 3:00 PM.