Press Release

A Portfolio of Grade A Strata Office In The Heart of Raffles Place For Sale via Expression Of Interest

CBRE is pleased to offer for sale, a portfolio of office units spanning across 4 levels in 20 Cecil Street, with a 99-year leasehold tenure (w.e.f. 1989).

11 May 2022

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A Portfolio of Grade A Strata Office In The Heart of Raffles Place For Sale via Expression Of Interest

Singapore, 11 May 2022 – CBRE is pleased to offer for sale, a portfolio of office units spanning across 4 levels in 20 Cecil Street, with a 99-year leasehold tenure (w.e.f. 1989). As the exclusive marketing agent, CBRE will conduct the sale via an Expression of Interest exercise which closes on 14 June 2022 at 12pm.

The portfolio comprises a total of 22 strata units across four levels – with a total area of approximately 24,477 sq ft and features premium office specifications including, a 2.9-meter floor-to-ceiling height with full curtain window and air-conditioning which allows for independent unit operation.

Enjoying prominent dual frontages along Cecil Street and Church Street, the 28-storey Grade A office building also boasts a grand marble-clad office entrance lobby, with direct sheltered access from Raffles Place MRT station, generous car parking provision of 86 lots across three basement levels and an exclusive sheltered drop-off point.

Zoned for “Commercial” use, both locals and foreigners are eligible to purchase the subject property, and there will be no Additional Buyers’ Stamp Duty or Sellers’ Stamp Duty imposed on the transaction.

The portfolio has a guide price of S$75.88 million, which translate to approximately S$3,100 per square foot based on the strata area.

Mr Michael Tay (郑兆能), Head of Capital Markets, Singapore at CBRE, says, “Given the building’s hi-specs quality, accessibility and strategic location, we expect strong interest from both investors and owner-occupiers for this portfolio. 20 Cecil Street has been popular among tenants and owner-occupiers considering the strong tenant profile from diverse trade mix it currently accommodates. It is uncommon to own 4 contiguous floors in an office building in Raffles Place and this presents a good opportunity for end-user occupiers or investors to acquire quality premises for their own operations and be among some of the MNC brands in the locale. The buyer can also choose to lease out the units which will give a rental yield of approximately 3.5%, which is much higher than yields for residential units.”

The Raffles Place precinct has undergone an exciting rejuvenation with the completion of CapitaSpring. This has brought even more MNC tenants into the vicinity from a diverse mix of sectors – including JP Morgan, Redhat, Millennium and SMBC, all of whom have chosen to locate in this vicinity.

The office occupancy in the Raffles Place sub-market remained strong even through COVID-19 with an average occupancy rate of above 90% in the past 3 years. With the opening of borders and work-from-home no longer the default mode of work in Singapore, occupancy rate is expected to remain strong with a potential for rental upside as leasing demand continues to stay strong.

Mr Joshua Giam, Associate Director of Capital Markets, Singapore at CBRE says, “Considering that the government has restricted strata subdivision of commercial properties in the central areas, this means that prime strata office will be limited in supply and increasingly hard to come by. With the recent announcement of the increase in residential additional buyers’ stamp duty in December 2021, we have been receiving a lot more enquires for commercial assets, as investors are optimistic on the long-term investment view on the potential of both rental increase and capital appreciation. This portfolio will also be a good opportunity for family offices, investors or owner occupiers.”

One recent transaction of strata Grade A office in the Raffles Place District is an office unit on Level 12 in Samsung Hub which changed hands at S$4,155 per square foot in January 2022.

20 Cecil Street enjoys direct sheltered connectivity from Raffles Place MRT station, which allows tenants and visitors to access surrounding developments within the vicinity through the well-connected underground walkways. Retail amenities and F&B offerings are aplenty, being closely located to Lau Pa Sat, a hawker centre occupying level 2 and 3 of CapitaSpring, as well as retail offering at Far East Square.

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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 2021 revenue). The company has more than 105,000 employees (excluding 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.