A Prime 999-year Leasehold Site in the Central Business District with Re-development Potential
International property consultant, Colliers International is putting up for sale by tender, The Arcade, a 20-storey commercial development located at 11 Collyer Quay.
The tender closes on March 19, 2014, at 3.00 pm.
The Arcade sits on a prime site in the Central Business District of approximately 21,909 sq ft and has a 999-year leasehold tenure. Under the 2008 Master Plan, the subject site is zoned for “Commercial” use with an allowable plot ratio of 13.86 and a building height of up to 50 storeys.
Completed in Year 1981, The Arcade comprises 3 levels of retail units, 16 levels of office space and a basement car park with 51 lots. The maximum allowable gross floor area is approximately 303,657 sq ft and the total existing strata area is some 157,325 sq ft.
Ms Tang Wei Leng (邓慧玲) , Executive Director of Investment Services at Colliers International, says, “The Arcade is a prominent 999-year leasehold strata-titled retail-cum-office development situated right in the heart of Raffles Place. This is a great and rare investment opportunity for both local and foreign investors, given the scarcity of strata-titled mixed developments that are made available for sale.”
There is huge re-development potential for the site, as the existing plot ratio has not been fully maximised.
Ms Tang continues, “We would envisage a mixed-used development comprising four levels of retail shops, including a basement level that could have a possibility of direct access to Raffles Place MRT station. Car parking facilities would be from level 4-6 and offices/serviced apartments would be from Level 7 onwards.”
She adds, “We expect good demand for both the retail and office units, if they are made available on a strata basis. Based on office transactions at Eon Shenton, Oxley Tower, Samsung Hub and SBF Centre, office space at the new development is expected to be priced at above S$3,500 per sq ft, while retail space at above S$12,000 per sq ft. In fact, current asking prices for the retail units at The Arcade are already close to S$10,000 per sq ft, with the highest retail unit transaction recorded at S$7,263 per sq ft in January 2011.”
A familiar place for many people working in the Central Business District, The Arcade enjoys dual frontage onto Raffles Place and Collyer Quay, occupying a strategic position connecting the Raffles Place financial district to the New Downtown areas in Marina Bay.
Historically, the site was occupied by The Alkaff Arcade, which was previously hailed as Singapore’s best known waterfront landmark. It was the first building to break the low skyline of the Collyer Quay waterfront amid the old go-downs then. Now situated directly above Raffles Place MRT station, it has since evolved into a place bustling with heavy human traffic and activities, with the retail shops providing amenities and services to the working community in Raffles Place.
Other landmark commercial developments in the vicinity include Clifford Centre, Ocean Financial Centre, Chevron House and Singapore Land Tower, among others.