Three strata commercial units in CBD up for sale via expression of interest

THREE strata-titled commercial units in GB Building are up for sale via expression of interest. The building is located at 143 Cecil Street in the central business district (CBD).

The units, which have a total strata area of 31,086 square feet (sq ft), can be purchased individually or as a portfolio, exclusive marketing agent Knight Frank said on Thursday. It declined to name the seller and the price of the portfolio. 

The portfolio includes a retail podium spanning the first and second levels of the building, as well as full-floor office units on the third and eighth floors, with strata areas ranging from 5,425 sq ft to 13,067 sq ft.

The retail podium is available for sale with vacant possession, while the office units are for sale with existing tenancies, which include a service office and food-delivery business.

GB Building is a 26-storey office development with a three-level basement carpark for 105 vehicles. The 99-year leasehold building is situated at the junction of Cecil Street and McCallum Street and is near Tanjong Pagar MRT station, Telok Ayer MRT station and the upcoming Shenton Way MRT station.

Ian Loh, Knight Frank Singapore's head of Capital Markets (Land and Building, Collective and Strata Sales), said the three units for sale represent about 22 per cent of the total strata area and 21 per cent of the total shares of GB Building.

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"This is a considerably large stake in the development, and such capacity will come into play during a collective-sale exercise," he said.

New buyers of the units may have a chance to capitalise on untapped plot ratio via a collective sale with other owners if there are plans for redevelopment, Knight Frank noted.

GB Building falls within the Central Business District Incentive Scheme, which encourages the conversion of existing, older office developments into mixed-use developments to rejuvenate the CBD.

If there are plans for redevelopment with the stipulated change of land use, the Urban Redevelopment Authority has provisions for increases in development intensity.

"We expect strong interest from investors looking to have a stake in the CBD commercial market, where most buildings are usually wholly held by conglomerates," Mr Loh said, adding that strata commercial units, particularly in District 1, are highly sought after by investors as they are rarely available and tightly held.

Knight Frank said it is noticing more activity in the office market, and expects to see more strata office opportunities coming up.

As the assets are zoned for commercial use, both locals and foreigners are eligible to purchase. There is also no additional buyer's stamp duty or seller's stamp duty imposed on the transaction.

The expression of interest exercise will close at 3pm on April 28.