Redeveloped PIL Building To Be Sold On Strata Basis
SINGAPORE – The joint venture redeveloping the PIL Building site in Cecil Street has recently appointed 5 real estate agencies to market the upcoming office property on a strata-titled basis, according to a report from The Business Times that was updated on Friday afternoon (2 December, SGT).
This marks a shift in strategy as LaSalle Investment Management and TE Capital Partners were earlier considering a forward sale of the entire commercial property.
Notably, property agencies SRI, Savills, Huttons, CBRE, and Cushman & Wakefield (C&W) have been seeking interest for an initial four office floors at Solitaire On Cecil, the new name of the redeveloped building.
In particular, the 5th floor is priced at S$47.74 million, which translates to S$3,830 psf based on its net saleable area of 12,465 sq ft. For level 15, the sellers are asking S$54.89 million, which works out to S$4,180 psf based on the office floor’s 13,132 sq ft net saleable area. The other 2 office floors are priced in between, and the buyers will make progress payments depending on the phases of the development’s completion.
Disposing the office floors on a strata-titled basis would make it easier to find buyers and the absolute price would be more attractive. In September, The Business Times reported that the joint venture is targeting to sell the entire office building for over S$760 million, which equates to S$4,000 psf based on its overall saleable area of roughly 191,800 sq ft.
Recently, the Urban Redevelopment Authority (URA) banned the strata subdivision of commercial properties in certain parts of Singapore’s Central Area, meaning the stock of strata-titled offices will remain limited. As for Solitaire On Cecil, the URA’s written permission for the redevelopment that was granted in July indicates that the new commercial property could be strata subdivided.
Notably, the 20-storey freehold office tower will come with 15 office floors measuring between 11,238 sq ft to 13,487 sq ft. It will also have two restaurants at the ground level.
Of the office floors, six levels will have one strata title per floor, while the other nine office floors will be further subdivided into eight smaller office units per floor, but it’s understood that the joint venture intends to dispose of them on a whole-floor basis as well.
Based on market chatter, interest has been encouraging from would-be buyers, which include family offices, firms looking to purchase office space for their own use, and super affluent Singaporean and foreign buyers, including those from China and Hong Kong.
Solitaire On Cecil’s office floors are enticing, given the rarity of freehold strata office properties in Singapore’s central business district (CBD). At present, there are fewer than 10 strata office buildings in the CBD with good specifications and relatively large floor plates. These include SBF Center, Suntec City, Samsung Hub, Prudential Tower, and Springleaf Tower. Of these, only Samsung Hub sits on a site with 999-year leasehold tenure, while the other four have 99-year leasehold tenures.
The freehold Solitaire On Cecil, which was designed by DP Architects, is expected to be completed by 2026.