A SINGLE floor of strata office space at 15 Scotts Road has been put up for sale by Top Global with an indicative price of S$76 million.

This translates to around S$3,419 per square foot (psf) in strata area, said exclusive marketing agent Cushman & Wakefield (C&W) on Tuesday (Jan 9). The second-floor space is currently approved for childcare use and leased to a childcare operator.

Formerly known as Thong Teck Building, 15 Scotts Road is a freehold nine-storey commercial building with retail space on the ground floor and eight floors of office space. 

The second-floor space up for sale has a total strata area of 22,227 square feet (sq ft) that includes an open courtyard and sky terrace, and would provide ownership of more than 20 per cent of the share value of the property, said C&W.

Shaun Poh, C&W’s executive director of capital markets, said: “This allows the new owner to participate significantly in the decision-making process with regards to the building’s future collective sale potential, as the subject freehold site has yet to maximise its plot ratio of 4.9 per Urban Redevelopment Authority (URA)’s Master Plan 2019”.

The space being marketed is part of a batch of the building’s strata lots acquired by Top Global in 2019 for S$170 million. The company has been steadily selling the assets since 2021, after it delisted from the Singapore Exchange and was taken private.

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Eight lots occupying about 8,643 sq ft were sold in September 2021 to multiple buyers for S$31.93 million in total, or just under S$3,700 psf.

Units on the third, sixth and eighth floors were sold for a total of almost S$55 million between February and December 2022.

In July 2023, two strata retail units on the ground floor were sold by Top Global for S$4,828 psf – or S$31.08 million – to retailer House of Hung, below the indicative price of S$38.8 million, or close to S$6,000 psf.

In October 2022, Cortina Holdings bought the fourth floor from Singapore Institute of Management Group for S$49 million, or S$3,568 psf.

C&W estimates that the supply of strata office space outside of the Central Business District will be limited in the next three years, with no new supply until 2028 for the Orchard area. Strata subdivision is no longer allowed for commercial properties in parts of the Central Area, including Orchard Road and Scotts Road.

“Orchard Road Grade A office rents are projected to grow by approximately 4 per cent per annum on average till 2027,” it said.

The expression-of-interest exercise for the second-floor space will close on Feb 22.