Rare opportunity to acquire a 999-year trophy office building in the heart of Singapore’s CBD
October 17, 2022
Singapore, 17 October 2022 – CBRE, as the exclusive marketing agent, is offering investors a rare opportunity to acquire a corner standalone office building located at 51 Club Street, Singapore, on a 999-year tenure. The sale will be conducted through an Expression of Interest exercise, which will close on Thursday, 22 November 2022, at 3pm.
51 Club Street is a 5-storey commercial building with a gross floor area of 28,876 sq ft. Extensively refurbished in 2011, the asset has premium grade office specifications such as a regular, efficient floorplate, generous floor-to-ceiling height, a passenger lift that serves all floors in the building, and a private parking facility with 5 lots. The highly visible corner building has a roof terrace offering a panoramic view of the CBD and Chinatown skyline and boasts an impressive 60-metre-wide dual road frontage along Club Street.
Indicative price for 51 Club Street is S$120 million, or approximately S$4,155 psf on the total gross floor area. Foreigners and corporates are eligible to purchase the commercial property with no Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD).
Michael Tay, Head of Capital Markets, Singapore, CBRE, says, “Freehold / 999-year boutique office buildings, with a palatable investment quantum of approximately $120 million within the CBD, are rarely made available. These assets are highly sought after by a wide range of buyers such as family offices, boutique real estate funds, corporates, and high-net-worth individuals. 51 Club Street represents a once-in-a-generation opportunity for investors and owner-occupiers, to acquire a freehold equivalent trophy office building located within the heart of the CBD bearing a prestigious address.”
Deriving its name from elite social clubs along the street in the late 19th to early 20th century, Club Street was the place for businessmen and affluent merchants to gather. Due to its rich history, the charming area has attracted numerous family offices, wealth management firms, and associations as their choice office location during the day. During the night, the area transforms into a trendy, upscale F&B and lifestyle destination featuring numerous renowned bars and dining establishments.
Clemence Lee, Executive Director of Capital Markets, CBRE Singapore, says, “At 51 Club Street, the completion of an extensive asset enhancement initiative in 2011 refreshed the building’s façade, interior, toilets, M&E and common areas, turning the asset into a modern office building. Furthermore, with its prominently wide frontage on a corner location, the building offers highly visible naming and signage opportunities to the new owner or an anchor tenant.”
Mr Lee adds, “Given the asset’s scale, multi-faceted value-enhancement strategies can be adopted, subject to approval from the relevant authorities. The roof terrace which offers magnificent views of the CBD and overlooks the surrounding conservation shophouses, presents an opportunity to house a rooftop bar or restaurant, given the rarity of such venues in the CBD. The ground floor can also potentially be converted into an area for F&B usage, while the second to fifth floor can possibly be retrofitted to house a boutique hotel or co-living facility. Additional options to enhance the value of the asset include retrofitting with sustainability features to improve its Green Mark Rating.”
Notably, located just a few doors down the road from 51 Club Street, is The Chinese Weekly Entertainment Club – the most notable of the four “Millionaire’s Club” in Singapore that still operates as an exclusive meeting place for the affluent in Singapore. With a new 19-storey 4-star hotel within the vicinity expected to be completed by Q1 2023, the hotel development will bring about 900 new rooms to the area, generating positive spillovers for businesses around Club Street. This will also further enhance connectivity of the area with the direct sheltered access via an underground pedestrian link to the Telok Ayer MRT station and Chinatown MRT Interchange.
51 Club Street enjoys seamless connectivity and is well connected to other parts of Singapore via public and private transportation. Telok Ayer MRT station, Tanjong Pagar MRT station, and Chinatown MRT Interchange are only a short walk away, and accessibility is set to further improve with the completion of Maxwell MRT station at the end of 2022. Numerous bus services can also be found along South Bridge Road. By car, the property is easily accessible to other parts of Singapore via expressways such as Central Expressway (CTE), Marina Coastal Expressway (MCE) and Ayer Rajah Expressway (AYE).
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.