Family Offices Ramp Up Purchase Of Prime Strata Office Space
SINGAPORE – Ultra-high net worth individuals and family offices are acquiring more prime strata office space in the city-state, particularly those in Suntec City Towers, reported The Edge on Friday morning (8 October, SGT).
For example, a portfolio of 6 office floors – 1 in Suntec City Tower 1 and 5 Suntec City Tower 2 changed hands in June. With a combined area of 78,491 sq ft, the properties were purchased by Silkroad Property Partners, while Savills negotiated the deal.
In Suntec Tower 2, 2 other office floors were launched for sale via an expression of interest (EOI) by Cushman & Wakefield (C&W). Both assets were owned by firms controlled by the Tsao Family Office and IMC Pan Asia Alliance Group, both of which are based there and owned by the Tsao family.
Based on a caveat filed in June, IMC’s 14,381 sq ft office unit at Suntec Tower 2’s 11th floor was held under Progress Realty and was divested for S$38.3 million (S$2,663 psf) to Brilliant Wealth Investments, a unit of AL Wealth Partners. The buyer is believed to have acquired one of the office units on behalf of a family office, while the other is for its own use.
Recently, a local investor bought 3 office units on level 6 of Suntec Tower 2 for S$33.08 million (S$2,300 psf) in all, but a caveat has not yet been filed. The assets, measuring a total of 14,381 sq ft as well, were previously owned by IMC under Chesser Pte Ltd.
C&W brokered transactions for the office units on level 6 and 11 of Suntec Tower 2. The Tsao Family Office will lease back one of the 3 office units on the 6th floor for 2 years, while IMC will lease back the 11th floor workspace until September 2022.
Notably, the increase in office prices at Suntec City accelerated since H2 2020. For instance, the latest deal for a 3,079 sq ft office unit on level 37 of Suntec Tower 1 saw the buyer forking out S$10.52 million or S$3,417 psf, the highest psf price at Suntec City so far this year and the most expensive psf price in record.