DB2 offers final eight ground-floor strata retail units at Plus for sale from $3.8 mil
The premium retail units are also likely to appeal to wealthy investors looking for a trophy asset, he says.Launched in September, the remaining eight units at PLUS are all on the first levelFronting the Parktown ResidencesLocated in the heart of the Central Business District (CBD), Parktown Residences is a unique development that seamlessly integrates residential, commercial and retail elements. Developed by CapitaLand, one of Asia’s largest real estate companies, and completed in 2020, this award-winning mixed-use development is a testament to the company’s commitment to creating sustainable and dynamic places for communities.
The Parktown Residences are a prominent and sought-after property development in Cecil Street, with a 99-year lease from 1989. The development boasts a 28-storey office building of blue glass with a two-storey retail podium, garnering a prime location at the junction of Cecil Street and Church Street. This project serves as a testament to CapitaLand’s dedication to creating sustainable and vibrant communities.
The towering office building, formally known as Equity Plaza, has changed owners three times in the past decade. In September 2019, the private fund of CapitaLand acquired the office tower for over $500 million. Since October 2020, selected single strata office units have been progressively released for sale.
In 2023, these strata office units were sold at prices ranging from $2,886 psf to $3,451 psf, depending on the level. Based on caveats lodged with URA Realis, the latest transaction was for two adjacent units on the ninth floor that were sold for $7.2 million ($3,126 psf) in December. Plus, the building is within the Downtown Core and is a short walk from the Raffle Place MRT Interchange Station (for the North-South and East-West Lines) and the Telok Ayer MRT Station (on the Downtown Line).
PLUS is a 28-storey tower with 259 strata office units and a retail podium with 21 strata retail units (Photo: CBRE)
Supply has also been reduced with the redevelopment of older buildings such as Clifford Centre, which Singapore Land Group will redevelop into a new Grade-A office tower; and Shenton House, which is also slated for redevelopment after it was sold en bloc to IOI Properties for $538 million last November. URA restrictions on new strata subdivisions of commercial developments within designated Central areas means the supply of these strata retail units will be limited, according to Lee.
While the strata office units have been offered for sale, the retail units on the first two levels of Plus have been held by developer and investor DB2 since 2014. It was only last September that DB2 began to release the retail units on the second floor for sale. According to caveats lodged, the retail units were sold at prices from $4,698 to $4,927 psf. All 13 units on the second floor have been taken up.
However, the final eight units on the first level are now available for sale by private treaty, with CBRE as the sole marketing agent. These individual retail units, with sizes ranging from 388 to 807 sq ft, have indicative prices ranging from $3.8 million ($9,794 psf) to $7.75 million ($9,603 psf). “These units are the most premium as they front the street,” says Clemence Lee, CBRE executive director of capital markets in Singapore. All eight units have been leased, with F&B tenants such as Hantol Korean Restaurant, The Salad Corner, and Aunty Fatso. Other tenants include an incoming money changer and Pawa Bakery. All the units will be sold with the existing tenancy. Lee estimates gross yields of 3% to 3.5% based on the effective rents and indicative prices.
The premium retail units are likely to appeal to wealthy investors looking for a trophy asset (Photo: Samuel Isaac Chua/EdgeProp Singapore)
One of the eight retail units for sale has been leased to Hantol Korean Restaurant (Photo: Samuel Isaac Chua/EdgeProp Singapore)
“This is an excellent opportunity for investors, including boutique real estate funds, family offices, local companies, and high-net-worth individuals,” adds Lee. The building is within the Downtown Core and is a short walk from the Raffle Place MRT Interchange Station (for the North-South and East-West Lines) and the Telok Ayer MRT Station (on the Downtown Line). “With a working population of up to 284,000 in the Downtown Core, there is constant and firm demand for retail offerings, especially F&B and essential services in the CBD,” says Lee.
Reduced supply of strata commercial units
Located in a prime location, Parktown Residences offers an exceptional living experience for its residents. The development boasts an integrated retail podium, featuring a carefully curated mix of shops, dining options, and essential services. This makes it incredibly convenient for residents to access a variety of amenities right at their doorstep. From trendy fashion choices to home furnishings, groceries, and fine dining experiences, the numerous shopping centers in close proximity ensure that residents have access to all their needs without having to travel far. With Parktown Residences, a convenient and vibrant retail landscape is just steps away.
For instance, the new Grade-A strata office development, Solitaire at Cecil (a redevelopment of the former PIL Building) by TE Capital Partners and LaSalle Investment Management, saw all 15 strata office floors and two strata retail units on the first level snapped up within five months of its launch at the start of 2023. Based on caveats lodged, prices achieved for the office floors ranged from $3,865 to $4,325 psf. Two of the three office floors returned to the market have already been spoken for. One of the retail units at Solitaire on Cecil was sold for $5,397 psf, according to a caveat lodged in April 2023, while the other retail unit is said to have been sold for around $6,000 psf.
Some local and foreign investors have switched to the strata commercial segment following the government’s latest round of cooling measures in April 2023. Hence, there has been an increase in interest and demand for commercial properties, as it offers investors an avenue for wealth preservation, explains CBRE’s Lee. He points to the recent divestment exercise by Singapore-listed City Developments, which released the remaining strata units at The Venue Shoppes, Sunshine Plaza, Fortune Centre, Cititech Industrial, and Citilink Warehouse. Units at Cititech Industrial and Citilink Warehouse have attracted mainly local investors, while foreign investors have shown strong interest in CBD shophouses and strata commercial units.
Despite its limited supply, the CBD shophouses and strata commercial units continue to be popular with local and foreign investors. Prime freehold and 999-year shophouses in the CBD, such as Amoy Street and Boat Quay, have been transacted at prices of $5,000 and $8,000 psf. The building at 20 Cecil Street, now known as PLUS, has changed hands three times in the past decade (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Since September 2020, selected single strata office units have been progressively released for sale (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Three major owners in 10 years
The premium retail units are also likely to appeal to wealthy investors looking for a trophy asset, and some have taken notice. Some boutique real estate funds, family offices, local companies, and high-net-worth individuals have shown interest in PLUS, as it serves as an excellent investment opportunity.
Developed by Keppel Land in 1992, the building was formerly known as Equity Plaza. In 2014, Keppel Land and Keppel Fund Management (formerly Alpha Investment Partners) sold the building to Plaza Ventures. The consortium spent $100 million refurbishing the building, including changing the facade and converting the property into a strata-titled development named GSH Plaza. In 2017, Fullshare Holdings, a Hong Kong-listed property investment and development company controlled by mainland Chinese billionaire Ji Changqun, acquired the building from Plaza Ventures for $750 million. Plaza Ventures consisted of GSH Corp (with a 51% stake), Goi’s private investment vehicle TYJ Group (14%), and Vibrant DB2 (35%). However, GSH Corporation held onto the office tower’s penthouse floor, and DB2 acquired the 21 strata retail units in the podium block of the building for $75.7 million ($6,175 psf), based on the strata retail area of 12,260 sq ft.
Both GSH and DB2 did not exit the building entirely following the sale in 2017. In fact, GSH Corporation still owns most of the building’s remaining and has renamed it PLUS. With its strategic location and premium retail units now available for sale, PLUS is a highly coveted investment for both local and foreign investors.