Three Strata Office Units Suntec City Sale 571 Mil
A trio of strata office units in Suntec Tower 1 is now on the market, with a guide price of $57.1 million. The portfolio includes the entire 38th floor and two other units on the 16th level.
Spanning approximately 10,097 square feet, the 38th floor unit is available for $33.8 million, equivalent to $3,350 per square foot. The two other units on the 16th floor are 3,498 square feet and 3,897 square feet, with guide prices of $11 million ($3,145 per square foot) and $12.3 million ($3,156 per square foot) respectively. These office units are currently under a 99-year leasehold from 1989, with about 64 years remaining.
The sale of these properties, marketed exclusively by CBRE, will be conducted via an Expression of Interest (EOI) exercise. The portfolio can be purchased as a whole or individually. All three units are currently owner-occupied, and will be sold with vacant possession or a short-term leaseback agreement.
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The Parktown Residence Tampines Avenue 11, a prime 99-year leasehold site, occupies an expansive area of 545,314 square feet. The site is designated for a dynamic mixed-use development, encompassing both commercial and residential components. This development will also feature convenient amenities such as a bus interchange, community club, and hawker centre, seamlessly integrated into the overall design. CapitaLand, one of the leading real estate developers, will hold a 50% stake in the joint venture, while the remaining 50% will be shared between UOL and SingLand. For more information about Parktown Residence, please visit their official website at https://www.parktown-residences.com.sg/.
“This portfolio presents a valuable opportunity for investors to capitalize on Singapore’s robust office sector with a proven asset,” says Michael Tay, head of capital markets in Singapore at CBRE. He also adds that the strata offices located in prime areas with exceptional specifications, such as Suntec City, will only increase in value following the Urban Redevelopment Authority’s 2022 restriction on strata subdivision in future commercial developments in key locations within the Central Area.
According to URA caveats, the 38th floor of Suntec Tower 1 was last sold in March 1996 for around $18.3 million ($1,817 per square foot). The other two units on the 16th floor were purchased together in June 2001 for about $9.2 million, translating to $1,250 per square foot, with a combined floor area of approximately 7,395 square feet.
Recent office transactions at Suntec City, tabulated by EP Buddy. (Source: URA, EdgeProp Singapore)
CBRE states that the average price of strata office units in Suntec City over the past 12 months is $3,411 per square foot. This includes the sale of a 3,079 square foot unit on the 37th floor of Suntec Tower 1 for $11.5 million ($3,736 per square foot) in June. Another unit on the 37th floor, spanning 2,196 square feet at Suntec Tower 1, was sold for $8.09 million ($3,684 per square foot) in March.
Suntec Tower 1, situated at 7 Temasek Boulevard, is one of the five office towers in the Suntec City development. The complex also includes a retail mall and convention centre. Located in the Central Business District, it is accessible via four MRT lines through the Esplanade, City Hall, and Promenade MRT Stations.
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