-- CBRE, as the exclusive marketing agent, is pleased to offer an entire floor plate located within the high zone of Prudential Tower for sale. The sale will be conducted through an Expression of Interest exercise, which will close on Thursday, 28 March 2024, at 3pm.
Prudential Tower is a premium-grade, 30-storey strata-titled office tower that is located in the heart of Singapore’s Central Business District – Raffles Place. The office tower sits prominently along a corner land plot that fronts one of the CBD’s busiest traffic junctions, with an impressive dual road frontage of approximately 87 metres along Cecil Street and Church Street. Prudential Tower is also well-equipped with a dedicated drop off point, which is accessible via Cheang Hong Lim Place and has a total of 181 car park lots from the 2nd to 8th floor. The sale opportunity has a strata area of 11,819 sq ft and is fully leased to a multi-national real estate consultancy firm, offering investors stable and immediate rental.
The indicative guide price for the asset is S$36 million, or approximately S$3,050 psf on the existing strata area. Being a “Commercial” property, companies and foreigners are eligible to purchase the subject property, with no Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) imposed on the purchase.
Clemence Lee, Executive Director of Capital Markets, Singapore at CBRE, says, “In Singapore, strata office buildings make up only approximately 15% of the total office stock. Coupled with the recent policy implementation by URA to restrict strata subdivision of existing and new commercial buildings in key areas within the CBD, the supply of new strata commercial properties will likely remain tight in the near future. As such, strata offices located in well located Grade A developments such as Prudential Tower will continue to be of strong interest to a wide range of buyers such as owner occupiers, corporate investors, family offices and high-net-worth individuals.”
Mr Lee adds, “Raffles Place – the nexus of commercial activity in the CBD, continues to experience a new wave of rejuvenation and maintains a healthy office occupancy of above 93%. For example, aside from the completion of CapitaSpring in 2022 and 55 Market Street in 2023, Singapore Land Tower is currently undergoing major AEI and the former Clifford Centre will be redeveloped into a new office tower. The completion of these projects will instill new vibrancy and dynamism in the sub-market and reinforce it as destination of choice for local and global occupiers.”
Although the entire floor plate is currently being occupied by a single tenant, the incoming owner has the option to improve rents by subdividing the floor into smaller units upon expiry of lease of the existing tenant. The new owner can also consider further subdividing the floor into smaller strata units to sell in the future, subject to approval from the MCST and relevant authorities. Smaller units of with a lower investment quantum typically fetch a higher price on a psf level. For example, notable small unit transactions at Prudential Tower and PLUS over the last few years have ranged between $3,250 to $3,450 psf.
Prudential Tower enjoys unrivalled connectivity, with an MRT entrance located right at its doorstep, offering direct and fully sheltered access to Raffles Place MRT Interchange. Telok Ayer MRT Station is also a short 2-mins walk away. It is also enveloped by a myriad of F&B offerings and service amenities at Raffles Xchange, China Square and Telok Ayer Conservation Area and Lau Pa Sat. The nearby Central Expressway (CTE) and Ayer-Rajah Expressway (AYE) also makes it highly accessible to other parts of Singapore.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2023 revenue). The company has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
