The Hour Glass acquires two levels of office units in Tong Building for S$68.5 million
The two floors in the freehold Orchard Road office property are near the watch retailer’s corporate offices in the same building
LUXURY watch retailer The Hour Glass announced on Thursday (Sep 26) that it exercised the options to purchase two levels of office units in Tong Building for S$68.5 million.
The purchases are for units located from #09-01 to #09-04 and #10-01 to #10-04. The total strata area of the two floors is 13,734 square feet (sq ft).
The sellers for these units are See Hoy Chan Realty and See Hoy Chan Land.
Located at 302 Orchard Road, Tong Building is a freehold office property. The two office floors are near The Hour Glass’s corporate offices in the same building.
The purchase consideration was arrived at on a “willing buyer-willing seller” basis, and will be funded mainly by internal resources, said the company.
The acquisition of these units is part of the group’s strategy to “invest in high-quality assets which will complement the group’s commercial properties in the region, and have potential for its own use”, it added.
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The purchase is expected to be completed in December.
Marketing agent Savills Singapore said: “In light of the recent Urban Redevelopment Authority’s regulations disallowing further strata subdivision in Orchard Road and some parts of the Central Business District, these freehold office floors stand out as a significant investment. The limited availability of such properties underscores their value and desirability.”
Besides the units on levels nine and 10, Savills brokered a deal for a level-six unit in August. The 6,867 sq ft unit was transacted for S$31.33 million, or S$4,562 per square foot (psf) and sold to Parkway Hospitals Singapore by Nanyang Holdings.
Yap Hui Yee, Savills Singapore’s executive director of investment sales and capital markets, added that the cumulative sales of these three levels reached approximately S$100 million, with an average blended price of S$4,845 psf.
These floors attracted interest from family offices, medical groups and users, and owner occupiers, said Yap. She added that the rejuvenation of Orchard Road will draw investors to assets in the area.
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