The Central Provident Fund (CPF) Board has nominated its freehold Anson Road premises for sale at an expected SGD 200 million.
79 Anson Road has been put up for sale. The freehold property is expected to fetch about SGD 200 million on the market, based on a selling price of at least SGD 2,000 psf on its strata area of 100,007 sq ft.Taking into consideration its current leasing configuration, the property offers net lettable area of 88,636 sq ft. The sale is being marketed by CBRE through an expression of interest exercise that will close on 23 October.
CBRE executive director Jeremy Lake said, "The deal size of SGD 200 million plus is in the sweet spot for many buyers including property funds and private Asian buyers. Investors will be attracted to the 100% occupancy and secure cashflow. It's also possible that developers will be looking to landbank the property for future redevelopment." Located about 250 m away from Tanjong Pagar MRT station, the 23-storey building occupies a central location in the heart of Singapore's CBD. It received Temporary Occupation Permit in 1992.
The Board is selling its eight floors of office space (levels 16 to 23) plus a ground-floor retail unit fronting Anson Road.
CPF Board's space comprises of 17 strata titles - representing about 44% of the entire property - with most floors split into two strata titles of about 4,746 sq ft and 6,339 sq ft each.
The remainder of the space in the 23-storey building is held by German fund manager SEB in the form of 22 strata titles totalling 117,423 sq ft on levels 1 and 5 to 15. Market sources said that SEB is also seeking to sell its space in the building.
The property has existing gross floor area of 289,185 sq ft, which slightly exceeds the 275,369 sq ft allowed under the plot ratio of 8.4 designated for the 32,782 sq ft site under Master Plan 2008. The commercial-zoned site may be built up to 35 stories.
79 Anson Road offers a number of potential opportunities. The space currently occupied by CPF Board is fully leased with a passing rent averaging SGD 5.84 psf per month, representing net yield of 3%.
Potential buyers may also desire the property as a source of steady rental income, while organisations seeking a flagship or headquarters property may also be interested.
Lastly, with new strata office units in the vicinity fetching up to between SGD 2,800 psf and SGD 3,100 psf, the site could prove lucrative for buyers keen on further splitting up the office spaces.
Tags: Business space, Office for lease, Shop for rent