International property consultant, Colliers International will be launching for sale – via Expression of Interest – a commercial development comprising a 22-storey tower block and a six-storey podium block on July 2, 2008. The property, named SPRING Singapore, is located at No. 2 Bukit Merah Central.

Sitting on a 88,295 sq ft site, SPRING Singapore has a total gross floor area (GFA) of 355,153 sq ft. With a lettable area of approximately 198,744 sq ft, the property is currently close to full occupancy and has some 200 car parking lots.

The Urban Redevelopment Authority has granted a change of use to “Commercial” until the lease’s expiry in Year 2083.

Upon completion of the sale, SPRING Singapore would leaseback approximately 50 per cent of the building.

Mr Ho Eng Joo, Executive Director of Investment Sales at Colliers International, says, “The subject property is currently yielding a net lettable area of close to 60 per cent of the GFA. The successful buyer could re-configure the existing floor layout to maximise lettable area. To achieve maximum return on investments, investors could also potentially convert the podium block to retail use.

 

Mr Ho continues, “The existing office supply crunch – coupled with an upward spiral in office rents – has resulted to an increasing number of tenants seeking alternative commercial space in fringe CBD areas. Hence, there is a potential for rental appreciation upon lease renewal.

Given the good location of the property and the rare availability of an office development near the CBD for sale, we expect to see keen interest for the subject property.”

Interested buyers are invited to submit their offer to Colliers International by July 29, 2008.