Three office floors at 20 Cecil Street are for sale
The Plus Building is located at 20 Cecil Street in the Raffles Place district of the CBD (Image: Colliers, PropNex)
SINGAPORE (EDGEPROP) – Three contiguous floors of office space in Plus Building, an office tower at 20 Cecil Street in the CBD, are up for sale. Each floor has a gross floor area (GFA) of 11,216 sq ft, meaning the total area is approximately 33,648 sq ft.
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Colliers and PropNex International have been jointly appointed to market the property. According to a joint press release from the two companies on January 9, the asking price for each floor is between $36 million and $37 million. The offices have 2.8-meter ceiling heights and floor-to-ceiling windows that offer 180-degree views of the city.
Plus Building is a prime office building in Raffles Place. The 28-storey tower has a 99-year lease since 7 December 1989. It has dual frontages along Cecil Street and Church Street, and direct covered access from Raffles Place metro interchange station. Telok Ayer metro station is a two-minute walk away.
Recent resale transactions at Plus Building show office units have sold for as much as $3,300 per square foot (Source: EdgeProp Research)
Tang Wei Leng, Managing Director and Head of Capital Markets & Investment Services in Singapore at Colliers, describes the property as a “rare opportunity” to acquire office space in the CBD, a market that is very tightly packed with people. “Currently, there is a shortage of quality office space in the central CBD due to a lack of new supply and existing space being taken away for new developments,” she explains. Supply has also been further constrained by the change in government policy to restrict the subdivision of commercial properties into condominiums in the central region.
Ismail Gafoor, Chairman and CEO of PropNex, agrees, adding that vacant floor plans for entire floors in prime offices in the CBD are hard to come by, especially in the coveted Raffles Place precinct. “We have seen strong demand from family offices and technology companies relocating their offices to Singapore and looking for vacant units for their own use, with Raffles Place being their top priority,” he notes.
Tang stresses that tight supply will lead to a sharp increase in rents for the property, pointing out that rents for premium and Grade A offices in the CBD have increased by 5.9% year-on-year in 2022. “Investors should consider purchasing multiple floors to achieve long-term value appreciation or look forward to the prospect of a future collective sale where they would have greater voting rights in this development,” she says.
Check out the latest offers near Cecil Street, Raffles Place MRT Interchange Station, Telok Ayer MRT Station.
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