A BATCH of six adjoining and refurbished strata offices at International Plaza in Tanjong Pagar are up for sale with a guide price of S$11.97 million.
They are available on a sale and leaseback scheme with immediate annual gross rental yield of 4.2 per cent for at least five years, said marketing agent Colliers International in a press statement on Friday.
The guide price works out to S$1,850 per square foot (psf) based on floor area. Colliers added this “compares favourably” with the average price of S$1,895 psf achieved for 13 office space transactions at International Plaza over the last six months.
The six strata offices have a combined floor area of approximately 6,469 sq ft and a 99-year leasehold tenure in effect since 1970. Due to the property’s commercial-use zoning, foreigners are eligible to purchase the office units. Additional buyer’s stamp duty and seller’s stamp duty are also not applicable, Colliers said.
Steven Tan, director, capital markets and investment services, Colliers International, said: “We believe the six strata offices offered for sale will appeal to astute investors, who are looking to capitalise on the tight CBD office space supply situation in Singapore over the next few years and are keeping an eye on potential upside opportunities over the longer term, as the government’s plans to develop the nearby Greater Southern Waterfront unfold.”
Adapted from The Business Times, 15 Feb 2019.