Office floors in Springleaf Tower for sale, guide price $2,500 per square foot on strata area

CBRE announced yesterday (July 21) that it will offer floors 8 and 9 of Springleaf Tower for sale through an expression of interest, closing at 3:00 p.m. on August 25, 2021.

Springleaf Tower is a 37-storey Class A office building with a 99-year lease (from 1996) located at 3 Anson Road. The 8th and 9th floors each have a floor area of ​​approximately 10,333 square feet and offer exclusive use of the lift lobby, toilets and pantry. The building in question also offers first-class office amenities – including raised floors, 2.8-metre ceiling height and air conditioning that allows independent use of the floors.

The guide price for individual or collective sale of each floor is S$25.83 million, which equates to approximately S$2,500 per square foot depending on the floor area.

Both locals and foreigners are eligible to purchase the property in question, which is zoned for “commercial” use. No additional stamp duty is charged to either the buyer or seller upon purchase.

Springleaf Tower features a large marble-clad office lobby that is three stories high. The building offers ample parking with 131 spaces on floors three to five, as well as a covered egress area.

Due to the high quality of the building and its strategic location at the intersection with Anson Road, Springleaf Tower enjoys consistently high occupancy rates and can rely on a strong tenant profile with a diverse mix of industries.

Michael Tay, head of capital markets in Singapore at CBRE, says: “Springleaf Tower is in the hands of a few owners, so it is relatively unusual for office space in the building to be offered for sale. This would be a good opportunity for end-users to acquire high-quality space for their own operations and to be located amidst some multinational brands in the area.”

The Tanjong Pagar precinct has undergone an exciting rejuvenation, marked by the Guoco Tower, Frasers Tower and the newly completed 79 Robinson Road. Buildings also slated for the submarket as part of the redevelopment include the AXA Tower, Fuji Xerox Towers and Keppel Towers. Tanjong Pagar’s increasing popularity is reflected in the multinational tenants from a diverse mix of industries – including ABN Amro, Allianz, ByteDance, Equinix, ING and Microsoft, all of whom have chosen to locate in the area.

New lifestyle and F&B offerings now complement the commercial and residential elements for which this area is traditionally known, transforming Tanjong Pagar into a vibrant community hub for living, working and playing.

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Great investor interest is expected for the office floors in the Springleaf Tower.

Mr Tay added: “The Government’s CBD incentive schemes and strategic development incentives are designed to transform the area into a future-proof CBD enclave with a live, work and play vision that encompasses a dynamic mix of commercial, hospitality, residential and leisure. In addition, given the tight supply of prime CBD office space, we are optimistic that the offering will be very attractive to investors with medium to long-term investment horizons to capitalise on the potentially rising rents and capital values.”

A recent Grade A office transaction in the Central Business District involves Level 9 at Samsung Hub, which changed hands in May 2021 for S$4,050 per square foot.

Springleaf Tower has a direct covered access to Tanjong Pagar metro station. Tenants and visitors can also use the well-connected underground walkways to access the surrounding developments in the area. There are numerous retail and dining options as the building is in close proximity to Amoy Street Food Centre, Maxwell Food Centre, Lau Pa Sat Food Centre and the wide range of popular bars and restaurants in the shophouses along Telok Ayer and Amoy Street.

Mr Paul Hothe highest official at iCompareLoan said: “Real estate such as the office floors in the Springleaf Tower can be purchased in one’s own name.”

He added: “When purchasing a commercial property or industrial property under the name of a company that is well established and has an existing operating business with sound financials, the TDSR may be waived for the individual. However, the director will usually have to personally guarantee the loan that the company is taking. This may therefore affect other purchases made by the director, such as the purchase of a residential property, as the TDSR charge is applicable for guaranteeing a loan.”

The biggest winners from the various rounds of measures to cool the real estate market are likely to be owners of office and commercial buildings with commercial use. Covid-19 restrictions have also affected almost all categories of buyers and are likely to achieve their intended goals of cooling demand and dampening price growth.

According to a report, investors looking for alternatives to park their money amid measures to cool down the real estate market are turning their attention to the office and commercial building market as they are not affected by the current round of purchase or sale restrictions/encumbrances.

Mr Ho said that despite the property market restrictions imposed by the government last year, Singapore was still an attractive residential property market for investors.

Although the euphoria in the real estate market has been somewhat dampened by the slowdown and Covid-19 measures, Singapore is still at the forefront as an investment location for the real estate market – shoulder to shoulder with other cities in the world such as London, New York, Shanghai and Sydney.

“We need to be aware that there is a lot of excess capital floating around here and that Singapore has one of the lowest home loan interest rates in the region at 1.9 to 2 percent,” he added.

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