This strata lot allows buyer(s) to hold more than 20% in share value of the entire development.
Cushman & Wakefield (NYSE: CWK), a leading global real estate services firm is pleased to offer the exclusive sale of the entire second-floor office space at 15 Scotts Road, one of Singapore's most prestigious districts via an Expression of Interest.
Formerly known as Thong Teck Building, 15 Scotts is a prime freehold 9-storey commercial building
prominently located along the busy thoroughfare of Scotts Road, and surrounded by notable shopping malls, luxury hotels, the American Club, and the Tanglin Club. The building underwent a comprehensive $15 million refurbishment in 2015 that included the upgrade of common areas and a new full-height curtain wall.
In the next 3 years, the availability of strata office space outside of the Central Business District will be greatly limited, with no incoming supply until 2028 for the Orchard area. The Orchard Road Grade A office rents are projected to grow by approximately 4% per annum on average till 2027. Coupled with the URA’s circular in March 2022 on the restrictions for strata subdivision of commercial properties along Orchard Corridor, this opportunity provides potential buyers with a rare strata investment asset that is well positioned to withstand the test of time and benefit from rental growth that comes with limited supply.
At S$76 million, the indicative price of the entire Level 2 of 15 Scotts translates to around S$3,419 per square foot (psf). The last transaction in this building was in July 2023, also brokered by Cushman & Wakefield, for its ground floor units, marking the highest recorded S$4,828 psf in this development.
Mr. Shaun Poh, 傅子伟, Executive Director of Capital Markets said: “The strata office floor spans a generous strata area of 22,227 sq ft which includes an open courtyard and sky/ roof terrace. It is currently approved for childcare use and leased to a childcare operator. This would appeal to owner occupiers or education providers looking for a sizable space that comes with an outdoor area to operate the specialized trade. With the current strata subdivision restriction in prime areas, we do not foresee any of the big floor plates with a single ownership to be released anytime soon. The opportunity presents a unique chance for investors and businesses looking to establish a presence in a highly coveted location.”
Mr Poh added, “Acquisition of this full floor strata commercial lot would entail the ownership of more than 20% in share value, which allows the new owner to participate significantly in the decision-making process with regards to the building’s future collective sale potential as the subject freehold site has yet to maximise its plot ratio of 4.9 per URA Master Plan 2019. With the recent collective sale of Far East shopping Centre at record price, we are confident to attract strong interest from investors for this asset.”
Zoned full commercial, foreigners are eligible to buy without attracting Additional Buyer’s Stamp Duty. The Expression of Interest exercise will close on Thursday, 22 February 2024, 3pm.
