4 Office floors at The Arcade put up for sale
Posted on November 23, 2007
Filed Under Office
Almost 18 per cent of The Arcade at Raffles Place comprising four floors have been put up for sale through an expression of interest exercise, and the indicative price range is between $80 million and $90 million. Based on the indicative price, the unit price for the 32,120 sq ft of space is between $2,500-$2,800 psf. CB Richard Ellis (CBRE) and Jones Lang LaSalle are advising the owners jointly on the divestment. CBRE added that the owners are Singaporean.
CBRE director (Investment Properties) Charles Hoon also said that the four strata-titled floors for sale represent a rare opportunity to own commercial space at Raffles Place because most of the office buildings in the area have single owners.
Mr Hoon did say that the original developer of The Arcade still owns about 30 per cent of the building so there is a potential to redevelop the site through a collective sale especially as the existing built-up gross floor plot reflects a plot ratio of about 8 but can be maximised to about 14.
The Arcade is a 20-storey mixed commercial and retail building comprising an office tower and a three-storey retail podium with a total net lettable area of about 118,317 sq ft. The property is held on a mixture of 999-year and 99-year leasehold interests. The current yield is about 2 per cent but Mr Hoon said that with leases expiring next year, rental appreciation can be expected.
(Source: sgpropertypress.wordpress.com/Business Times, 23 Nov 2007)
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