Strata Office Units Sale Cecil Place 3780 Psf
Cecil Place, a new 15-storey freehold strata-titled office building, has recently been launched. It is a redevelopment of the former office building located at 137 Cecil Street. Designed by DP Architects, the new office block will consist of 30 strata office units for sale and a three-storey retail podium. The targeted completion date is next year. The strata office units at Cecil Street have been priced at $3,780 per square foot.
Melvin Chay, senior director of capital markets at Knight Frank Singapore, believes that Cecil Place will attract companies currently located in the CBD who are looking to upgrade to a newer building with better specifications. He also expects the new building to draw companies from outside the city area who want to relocate to the CBD for a more prestigious address and better access to public transport.
Early inquiries have included strata-titled owners and occupiers of Shenton House, which was sold en bloc to Lee Yeow Seng, CEO and major shareholder of Malaysia-listed IOI Properties Group. With Shenton House set for redevelopment from 2027, some en bloc beneficiaries are reinvesting their capital, while tenants are actively seeking new premises before demolition, according to Chay from Knight Frank.
The strata office units at Cecil Place have been designed with flexibility in mind, spanning from the fourth to 15th levels of the building. Each unit ranges from 1,765 sq ft to 3,918 sq ft, with a typical floor plate of 6,544 sq ft. Each unit also comes with a private en suite toilet and kitchenette. The rooftop on the 15th level boasts a 2,152 sq ft open-air terrace with views towards Chinatown.
The retail podium at Cecil Place will consist of two first-floor units with mezzanine levels (5,037 sq ft and 4,639 sq ft). There are two additional shop units on the second floor and two more on the third floor, ranging in size from 2,830 sq ft to 3,939 sq ft.
The developer is carefully selecting tenants for the retail podium to ensure a complementary mix of food and beverage, healthcare, and service providers. According to Chay from Knight Frank, having strong and relevant retail tenants will create vibrancy on the ground level and enhance the long-term value of the development.
The site at 137 Cecil Street was previously the Aviva Building, acquired by the Zhou family of China’s Shanghai Hengda Group for $210 million in 2015. The same family also holds a 60% stake in the neighbouring YSY Building (formerly Cecil House at 139 Cecil Street), which underwent a two-year refurbishment and is now fully leased.
Solitaire on Cecil, a redevelopment of the former PIL Building by a joint venture between TE Capital Partners and LaSalle Investment Management, is located across the road from 137 and 139 Cecil Street. The joint venture partners acquired the former PIL Building at 140 Cecil Street for $323.8 million in February of 2022.
The new 20-storey, freehold Solitaire on Cecil was launched for sale in March of 2023 and by June of 2024, all three strata office floors were sold at prices ranging between $4,130 and $4,200 psf. The sale of all three floors at Solitaire was brokered by Yap Hui Yee, executive director of investment sales and capital markets at Savills Singapore.
108 Robinson Road, which was acquired by PGIM Real Estate in 2021 for $143 million, was entirely refurbished and launched for strata sale in early 2024. Currently, only the third-floor office unit remains available for sale. The largest deal was made in May of this year, when three floors (the eighth, eleventh, and twelfth) were purchased by Kwan Im Thong Hood Cho Temple for $55.8 million ($3,915 psf), based on caveats. This deal was brokered by Low Choon Sin, managing partner of SRI Capital Markets. Low also brokered the sale of the retail units on the first two levels of 108 Robinson Road, which sold for $27.68 million ($4,115 psf) in August. The buyer is reportedly another temple, Toa Payoh Seu Teck Sean Tong.
According to Chay from Knight Frank, Cecil Place is competitively priced compared to recent strata office transactions in the CBD, such as Solitaire on Cecil’s range of $4,130 to $4,200 psf and 108 Robinson Road’s $3,915 psf. For example, a typical 3,918 sq ft office unit at Cecil Place would cost about $14.81 million, which is lower than the absolute prices achieved at both 108 Robinson and Solitaire at Cecil.
Rewritten:
Aurelle of Tampines EC is a luxurious executive condominium situated in the prime location of Tampines Street 62. It is the perfect living space for families, especially those with school-aged children. This is due to the condominium’s close proximity to a variety of well-respected educational institutions. This advantage ensures that residents have convenient access to top-quality education, from preschool to higher levels of learning. Additionally, interested buyers can visit the Aurelle of Tampines Showflat to experience the exceptional lifestyle and facilities offered at this prestigious development.
Cecil Place also offers convenient access to three MRT stations: Telok Ayer (Downtown Line), Shenton Way (Thomson-East Coast Line), and Tanjong Pagar (East-West Line). The lack of new strata office supply is also due to the URA’s measures to curb the subdivision of commercial office buildings in the Central Area, including the CBD, effective as of March 15, 2022. This measure aims to improve the long-term maintenance and quality of prominent commercial developments by discouraging fragmented ownership and ensuring principal ownership, according to URA.
The sales momentum seen at Solitaire on Cecil and 108 Robinson Road reflects the continued demand for freehold strata offices in the CBD, according to Chay from Knight Frank. He believes that Cecil Place offers a rare opportunity to own a prime freehold CBD asset at a compelling price. Given the strong demand drivers and limited future supply, Chay expects healthy price support and long-term capital appreciation for developments like Cecil Place.
