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Three floors at The Octagon up for sale with total S$43m indicative price
THREE floors at The Octagon, a 25-storey freehold office building on 105 Cecil Street, have been launched for bulk sale by tender on Monday.
The prime ground floor retail unit and two office floors have a total indicative price of S$43 million, which works out to S$3,500 psf for the retail floor and S$2,450 psf for the office floors, according to sole marketing agent Cushman & Wakefield.
Located on the first, second and fourth floors, the properties have a total strata area of around 15,995 square feet (sq ft). The ground floor retail unit occupies 3,617 sq ft while the two upper office floors span 6,189 sq ft each.
The ground floor unit is leased to a fitness centre while the two upper office floors are occupied by two separate childcare centres, according to Cushman & Wakefield.
The Octagon is located at the junction of Boon Tat Street and Cecil Street, and is within walking distance of Raffles Place and Telok Ayer MRT stations.
Shaun Poh, executive director of Capital Markets at Cushman & Wakefield, said there continues to be strong interest for freehold strata retail and office floors within the central business district (CBD) like The Octagon.
"The recent CBD incentive scheme announced at the launch of the URA Draft Master Plan has also encouraged the owners of the older office buildings to relook their options for their properties," he added.
The scheme will see the Urban Redevelopment Authority (URA) offer an increase in gross plot ratio for areas in the CBD to encourage the conversion of existing office developments to hotel and residential uses. It applies to Cecil Street, Anson Road, Shenton Way, Robinson Road and Tanjong Pagar areas.
In February, a company controlled by the Murdaya family behind Indonesian conglomerate Central Cipta Murdaya, increased its presence at The Octagon by purchasing another three levels – Levels 14, 15 and 17 – for nearly S$45.5 million. This worked out to S$2,450 psf based on the 18,568 sq ft total strata area.
It previously spent S$30.3 million for levels nine and 10 of The Octagon, a deal which also worked out to S$2,450 psf. The family already owns the top two floors of the 25-storey building.
Mr Poh added that unlike the previous five strata floors recently sold in the Octagon, the latest three floors are fully occupied and include the entire ground floor retail unit.
“Prime ground floor retail space in the core CBD is highly sought after and hardly available for sale,” he said.
The tender exercise will close at 3pm on July 3.