The Business Times | April 13, 2013
An 883 sq ft unit on 17th floor changes hands at $3,500 psf. Seller Arch Capital also seeking single buyer for the whole of 14th floor
The buzz continues for strata commercial units.
At Samsung Hub, a 999-year leasehold office tower in Church Street, another record per square foot price has been set, although for a small strata unit.
The 883 sq ft unit on the 17th floor has changed hands at $3,500 psf. Jones Lang LaSalle brokered the sale.
This busts the previous record in the building, $3,150 psf, that was achieved just last month when Qatar Airways picked up half of the 13th floor or 6,092 sq ft for about $19.2 million. The seller was Arch Capital. That deal was brokered by CBRE, which late last year also handled the sale of the remaining two units on the same level on behalf of Arch - a 3,143 sq ft unit that sold for $2,920 psf followed by a 3,875 sq ft unit which fetched $3,000 psf.
All the space on Level 13 was sold on a vacant basis.
Arch also owns the 14th floor, which comprises four strata units, all of which are leased to an American law firm until end-2014. CBRE conducted an expression of interest for this space which closed on March 28. The four units add up to 13,110 sq ft and Arch is looking for a single buyer for this space. The indicative pricing is $3,400 psf and negotiations are going on, says CBRE executive director Jeremy Lake.
Meanwhile, Jones Lang LaSalle, which was marketing the 17th floor in the same building, has found buyers for five of the six units on the floor. Options have been granted for the five units. Besides the $3,500 psf deal, the other four units are being sold at between $3,126 psf and $3,300 psf. The $3,300 psf was for a 1,335 sq ft unit; two units of 2,562 sq ft and 2,992 sq ft each went for $3,200 psf, while a 3,595 sq ft unit is changing hands at $3,126 psf.
The units on the 17th level are being sold by a partnership between Buxani Group and a group of investors advised by Seychelles-based Capital Management Group (CMG). The partnership is now left with one unit of 1,765 sq ft on this floor. Kishore Buxani, managing director of Buxani Group, says he may use this space for his office. Currently his office is on Level 16, and Buxani-CMG sold the whole of that level (13,132 sq ft) last December at $3,000 psf. The partnership still owns three entire levels in Samsung Hub - 18, 19 and 21.
These are part of the six floors it acquired in early 2007 for $1,560 psf.
In Cecil Street, the 25th level of GB Building was transacted in February for $10.9 million or $2,010 psf based on its 5,425 sq ft strata area. CBRE represented the seller, which is a private investment company controlled by Singaporean and overseas interests. GB Building is on a site with a balance lease term of about 68 years.
Meanwhile, near Novena MRT Station, Fragrance Group has been marketing Novena Regency, a retail-residential mixed development, since last week. The freehold project comprises 45 strata retail units and 55 apartments. The retail units comprise 14 food and beverage (F&B) units and 31 shop units.
Ranging from 624 sq ft to 990 sq ft, the F&B units are thought to be priced between $6,800 psf and $8,800 psf. The 31 shops units - between 161 sq ft and 667 sq ft - cost from $7,100 psf to $10,400-plus psf. The upper band is probably for a 161 sq ft shop unit. There are only two units of this size.
Word on the street yesterday afternoon was that about a dozen strata retail units and 20 residential units have been sold.
The 55 residential units in Novena Regency comprise 43 apartments (one, two and three-bedders priced at $2,300 psf on average) and 12 penthouses (comprising two, three and four-bedder units).
Novena Regency is being marketed by Knight Frank and L². Fragrance is developing the project on the Novena Ville site, which it bought in May last year for $131.5 million. This worked out to $1,839 per square foot per plot ratio, with no development charge payable. The site has a land area of 51,092 sq ft.
The project is being officially launched, marked by the start of an ad campaign, today.
Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Property Network Pte Ltd (L3007960A)