Strata office floor at 15 Scotts Road for sale with S$52.5m indicative price

A STRATA office floor at 15 Scotts Road has been put up for sale via an Expression of Interest (EOI) with an indicative price of S$52.5 million, said exclusive marketing agent CBRE on Wednesday (Aug 31).

It has a strata area of 13,734 square feet — representing about 12.7 per cent of the total strata area. The indicative price thus translates to around S$3,822 per square foot on the total strata area.

At present, the office is fully occupied by a mix of tenants, which means the incoming owner will be able to enjoy immediate rental income, said CBRE.

Further, foreigners are also eligible to purchase the commercial property with no additional buyer’s stamp duty or seller’s stamp duty, they added.

“Freehold strata office floors housed in good quality office developments in Orchard Road are tightly held and rarely made available,” said Clemence Lee, executive director of capital markets, Singapore at CBRE. “As such, these assets are highly sought after by a wide range of owner-occupiers and investors such as family offices, boutique real estate funds, local companies and high-net-worth individuals.”

Lee noted that there has not been any transactions involving entire office floors in the Orchard area in the last 4 years.

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The last 2 strata office floor transactions include the sale of the entire 18th floor at Tong Building to Top Global for S$23.3 million in October 2017, as well as the sale of the entire 13th floor at Tong Building for S$25.5 million to Chopard’s family office in May 2016. 

Given that strata subdivision will no longer be allowed in existing developments and redevelopment sites in Orchard Road, the supply of good quality freehold strata offices available is likely to be restricted, said Lee.

“Existing good quality strata office developments, such as the one at 15 Scotts Road, will stand to benefit,” he added.

The EOI exercise will close on Oct 6 at 3 pm.