Office Floor At 15 Scotts Available For S$52.5mil
SINGAPORE – Exclusive marketing agent CBRE announced that a strata office floor at 15 Scotts has been launched for sale via an expression of interest (EOI) exercise with a guide price of S$52.5 million, reported The Edge on Wednesday afternoon (31 August, SGT).
The indicative price translates to S$3,822 psf based on the asset’s floor area of 13,734 sq ft. It makes up 12.7 percent of the freehold commercial property’s overall strata area, and 12.6 percent of the project’s total share value.
15 Scotts is previously called the Thong Teck Building, a 9-level strata-titled commercial project along Scotts Road within the Orchard Road area. The asset underwent extensive upgrades, including improvement of the façade and a sprucing up of its common areas and, which was finished in 2015.
CBRE Singapore’s executive director of capital markets Clemence Lee revealed that freehold strata office floors here remain highly-coveted by investors and owner-occupiers, as such commercial properties are tightly held and rarely made available.
“Due to their rarity, there have been no transactions in the last four years involving entire strata office floors in Orchard Road.”
In fact, the last strata office floor deal in the area happened in October 2017, when the entire level 18 of Thong Building was divested for S$23.3 million to Top Global. Prior to that, the entire 13th floor at the same building was disposed in May 2016 to the family office of luxury watch and jewellery house Chopard for S$25.5 million.
Lee anticipates that freehold strata office floors will continue to see high demand, as strata subdivision in Orchard Road and select areas within the Central region is no longer permitted for existing buildings and on redevelopment sites
“This ban will further restrict the supply of good-quality freehold strata offices available for sale and existing good-quality strata office developments such as 15 Scotts will stand to benefit,” Lee concluded.
Furthermore, 15 Scotts is expected to gain from the ongoing rejuvenation of the Orchard Road area, which in turn would help support strong rental and capital appreciation in the office building.
The EOI exercise for the strata office floor at 15 Scotts shall close at 3pm on 6 October 2022.