TPI Building Strata Office Floors Available For S$30mil
SINGAPORE – Marketing agent Cushman & Wakefield (C&W) revealed that the two uppermost strata office floors at the TPI Building have been put up for sale for a total of S$30 million, reported The Edge on Tuesday afternoon (14 February, SGT).
Given that each office floor measures 3,929 sq ft, the asking price works out to S$3,818 psf. The office space also makes up about 30 percent of TPI Building’s overall strata area. In addition, C&W disclosed that both office floors are presently fully leased by one occupant, providing the new owner with immediate office rental income.
The 6-storey TPI Building along 62 Cecil Street stands on a site with a leasehold tenure of 999 years. Apart from being close to the intersection of Cross Street and Cecil Street, the office building is also near the Telok Ayer Station and Raffles Place MRT Interchange. It is also within proximity to the many F&B establishments situated within Lau Pa Sat, Amoy Street, CapitaSpring, China Square, and Stanley Street.
C&W’s Executive Director for capital markets Shaun Poh shared that the Cecil Street office submarket is poised to be rejuvenated under the Urban Redevelopment Authority’s (URA) Urban Design Guidelines, whose goal is to turn the area into a more bustling commercial and residential precinct.
“With the start of 2023, and after the Lunar New Year, we are seeing more transaction activities in the strata office market specifically around the central business district (CBD),” he noted, adding that he expects Cecil Street would pique the interest of more investors as the area under undergoes rejuvenation, with ageing buildings to be redeveloped.
In particular, Poh believes the two top office floors in TPI Building could entice family offices and high-net-worth individuals (HNWIs) thanks to the property’s 999-year leasehold tenure, and they can hold the asset for own use or as a long-term investment.
“The opportunity at TPI building presents a palatable investment for such investors to enter the office market without overly concerned with the interest rate environments. Above that, resilient rental growth is likely anticipated within the office sector, driven by strong market demand and a supply backlog in the office pipeline,” he added.
The deadline to submit offers for TPI Building’s two topmost strata office floors shall close on 17 March 2023.