Two 999-year strata office floors on Cecil Street put on market for S$30m

TWO 999-year leasehold strata office floors at TPI building, a 6-storey office tower along Cecil Street, have been put up for sale via expression of interest, said CBRE in a press release on Thursday (17 Feb).

The indicative price for both floors combined is S$30 million, which translates to about S$3,818 per square foot (psf) for the total strata area.

Each floor has a strata area of 3,929 square feet (sq ft), amounting to a total of 7,858 sq ft for both, representing 31 per cent of the entire building strata area. The floors are located on the top 2 levels - level 5 and 6.

CBRE said both floors have existing tenants and can be sold collectively or individually. The property provides the prospective owner with immediate rental income, the agent added.

Foreigners are eligible to purchase the office floors as there is no additional buyer's stamp duty or seller's stamp duty imposed on the commercial property transaction.

The agent noted that the building is a walking distance away from Telok Ayer MRT station and Raffles Place MRT interchange. Food and beverage amenities are accessible within a short proximity as well, CBRE said.

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CBRE's senior director of capital markets Clemence Lee said he expects strong interest for the floors as it is becoming rarer to find 2 continuous floors in the central business district available for sale. He observed that most 999-year office floors have been purchased by high net worth individuals or family offices for long-term investment.

Lee said the new owner can look forward to strong rental and capital appreciation in the mid to long term due to the resilience of the office sector driven by strong demand and tight supply.

He highlighted that TPI building is currently under-utilised and only has 3 other owners within the building. He believes this presents an opportunity for all the owners to jointly redevelop or refurbish the building or to embark on a collective sale.

The expression of interest exercise for the 2 strata office floors closes on Mar 24, 2022 at 3 pm.