8 Strata Office Units In 15 Scotts Divested For S$31.93m
SINGAPORE – Eight strata office units in 15 Scotts, which was previously known as Thong Teck Building, have changed hands for a total of S$31.93 million, reported The Edge on Friday evening (1 October, SGT).
Located on the 6th and 7th level of the 9-storey commercial building along 15 Scotts Road, the units have a combined strata area of roughly 8,643 sq ft. This means the office units were sold for slightly under S$3,700 psf based on URA REALIS data.
“It was a collective purchase by several individual buyers, some of whom were high net worth investors and others were family offices,” shared Shaun Poh, Executive Director of capital markets at Cushman & Wakefield (C&W), the appointed exclusive marketing agent.
“Not all (buyers) were investors. Some bought with the intention of using the office units themselves. It was a mix of local and foreign buyers,” he noted, pointing out that some of the office units unloaded were vacant, while others were leased.
The office assets were sold by local property developer Top Global Limited, which still holds 14 strata office units there on level 3, 6, 7, and 8. These are for sale via private treaty, with C&W marketing them.
Poh revealed that there’s a wide array of strata office units available from a compact 614 sq ft office space on level 6 to an entire floor plate spanning 22,227 sq ft on the 2nd floor. Prices range between S$3,356 sq ft and S$4,068 psf. In addition, Top Global is also selling the strata retail unit on 15 Scotts’ ground floor for S$6,611 psf.
Moreover, he highlighted that 15 Scotts has great redevelopment potential as the existing development only utilised 70 percent of its maximum plot ratio. Completed in the 1970s, the commercial building stands on a 37,241 sq ft freehold site. Under the 2019 Master Plan 2019, it has a plot ratio of 4.9 and is zoned for commercial use.
“Given that the surrounding buildings are zoned for commercial, residential or hotel use, there is a possibility of converting the site from its current use as an office into a mixed-use development, subject to approval from the relevant authorities.”
Furthermore, 15 Scotts’ current total floor area measures 107,747 sq ft, so if someone buys Top Global’s 22,227 sq ft office space, they will own 20.6 percent of the strata area and 20.07 percent of the share value. This is a sizeable stake that can be taken advantage of in future en bloc sale opportunities, Poh explained.
“It’s very rare to find freehold strata office units in the prime Orchard Road area in District 9. It’s attractive to investors, especially Indonesians and those from North Asia who traditionally prefer freehold property in the prime Orchard Road area,” he added.