2011-03-22

Singapore

Colliers International is putting up for sale – by Expression of Interest – a seven-storey office development located at 22 Martin Road.

International property consultant, Colliers International is putting up for sale – by Expression of Interest – a seven-storey office development located at 22 Martin Road.

Interested buyers are invited to submit their offer to Colliers International by April 21, 2011.

Sitting on a freehold land of approximately 11,473 sq ft, the 10-year-old development has a gross floor area of some 34,556 sq ft and a net lettable area of 31,603 sq ft.  It currently houses retail space on the ground storey and office space from the second to the seventh storey.  There are 29 car parking lots available in the basement and ground levels.

The subject property is currently fully leased to a single tenant at an annual gross rent of approximately S$2.8 million.  The lease expires in 2012.

Under the 2008 Master Plan, the subject site is zoned for “Commercial” use, with an allowable plot ratio of 2.8 and a maximum height of up to 15 storeys.  Under the street block plan for River Valley, it has high potential to be re-zoned to “Residential” use, which is subject to approval from the relevant authorities.

Ms Tang Wei Leng (邓慧玲), Executive Director of Investment Services at Colliers International, says, “Recent prime office spaces in the Central Business District (CBD) have been transacted in the region of S$2,300 to S$2,500 per sq ft.  For instance, Capital Square recently changed hands at S$2,300 per sq ft, while four strata floors at Prudential Tower were sold at S$2,430 per sq ft.  Both properties are of 99-year leasehold tenure.

Given its freehold tenure and strategic location, the subject property is a highly desirable property which would appeal to corporate office end users, investors, as well as developers looking to leverage its re-development potential – especially when there are very few single-user type corporate office buildings near the CBD.

On the back of a recovering economy, strengthening business confidence, increasing tenant demand and expected rent increases, we expect strong interest for this quality building from corporate office users looking to own their own building.”

Ms Tang continues, “Additionally, Robertson Quay, in which the subject property is located, has recently emerged as a popular hotel district – with the recent URA sale of the hotel site which adds to the existing pool of hotels in the vicinity, such as Gallery Hotel, Riverview Hotel, Robertson Quay Hotel and Studio M.  Hence, the successful buyer could ride on the popularity trend and explore converting the subject property into a boutique hotel comprising some 102 rooms.

Alternatively, he or she could redevelop or refurbish the property into a residential or SOHO development.  In particular, SOHO developments have gained much popularity with both investors and owner-occupiers over the last few years, as witnessed by the sale of SOHO@Central, SOHO Life, The Lumiere, The Modules and The Tennery.” 

The subject property is located at Robertson Quay, strategically located along the Central Business District fringe.  It is within a short drive to Clarke Quay MRT station and has immediate access to several major expressways, including the Central Expressway and Ayer Rajah Expressway.