GB Building Sells 2 Strata Office Floors; Buyer May Be Eyeing En Bloc Sale
SINGAPORE – 3 strata-titled commercial units in GB Building have changed hands at an overall price of S$52.06 million, reported The Business Times on Tuesday morning (3 August, SGT).
These comprised a retail podium on level 1 and 2, the entire office floor on the 3rd floor, and the whole office floor on level 8. With a respective strata area of 12,594 sq ft, 13,067 sq ft, and 5,425 sq ft, the properties collectively measure 31,086 sq ft.
The larger office floor is being transacted for S$18 million or S$1,429 psf based on its strata area, while the smaller one is selling for S$8.58 million (S$1,582 psf). Meanwhile, the retail podium is being divested for S$25.48 million (S$1,950 psf).
All 3 strata-titled commercial units are being unloaded by a firm in receivership, whose sole shareholder is Singapore citizen Rajesh Bothra, with Knight Frank brokering the transaction.
They are being acquired by 3 entities whose sole shareholder is Dia-Globe (Singapore), a company involved in the wholesale of precious jewellery.
Altogether, the commercial spaces being transacted represent 21 percent and 22 percent of GB Building’s overall shares and total strata area, respectively.
Market observers pointed out that the sizeable stake can be a deciding factor if the entire property is put for en bloc sale.
Notably, there could be developers interested in buying the commercial building via collective sale to take advantage of the government’s CBD incentive scheme, which grants bonus gross floor area (GFA) to the property owner if they will convert their ageing office buildings into mixed-use developments.
Located at 143 Cecil Street, GB Building is a 26-storey block that stands on a land plot with a 99-year leasehold tenure commenced in October 1982. As such, it has a remaining tenure of slightly more than 60 years.
The commercial property is also close to 2 existing MRT stations – Tanjong Pagar and Telok Ayer – as well as the future Shenton Way MRT station.