Keck Seng Pte Ltd, the owner of Keck Seng Tower, has decided to put its leasehold 18-storey office building at Cecil Street up for sale.
No reserve price is set, but Colliers International, the property consultant responsible for the tender exercise that starts today, said there’s an indicative price of about $2,000psf — which could bring the price tag to above $240 million based on its 116,586sqf of nett lettable area.
Nearby, 1 Finlayson Green, a freehold-office building located at the heart of Raffles Place, was sold for around $2,650psf in May this year — more than 20 per cent higher than 1996’s peak for prime commercial properties.
And last month, a floor of Central, a 99-year retail-office space above Clarke Quay MRT station, transacted at about $2,850psf based on nett lettable area — the highest price fetched.
“(Keck Seng) property currently enjoys a 98-per-cent occupancy rate, with the last transacted rent in the range of approximately $6psf,” said Mr Dennis Yeo, Managing Director of Colliers International. “The current supply crunch has upped the asking rent to $6.50psf.”
Keck Seng Tower sits on 17,322sqf of 99-year leasehold land. Completed in 1984, the mixed-use commercial development has about 173,535 sqf gross floor area, including retail shops in the basement, first and mezzanine floors. The office units occupy the third to 18th floors, and 122 parking lots from the third to sixth floors.
The site is within walking distance to both Tanjong Pagar and Raffles Place MRT stations, as well as the yet-to-be-completed Circle Line’s Cross Street MRT station. Commercial buildings in the vicinity include Asia Chambers Building, Bangkok Bank Building, GB Building and The Octagon.
“With the current robust demand for office space, amidst soaring rents and tight office supply, particularly within the Central Business District (CBD), investors can expect to reap from this investment in the short-to-mid-term period,” Mr Yeo said.
“The successful buyer can choose to refurbish or redevelop the development, maximising its allowable gross floor area to approximately 198,000sqf,” he added.
The site is zoned for commercial use under the 2003 Master Plan, with a gross plot ratio of 11.2+ and has a maximum allowable height of 30 storeys.
Following UIC Building’s sale in April this year for redevelopment, Keck Seng Building is presently the only commercial property in the CBD up for tender.
The tender will close on Aug 8.
Source: Today, 10 July 2007