TripleOne Somerset office space put up for sale

This 17th-floor office space at Somerset Tower generates a yield of 3.5 per cent per year, said marketing agent CBRE. Capital markets director Sammi Lim said the agent expects to receive strong offers in excess of $31.4 million, or $2,980 per sq ft,
This 17th-floor office space at Somerset Tower generates a yield of 3.5 per cent per year, said marketing agent CBRE. Capital markets director Sammi Lim said the agent expects to receive strong offers in excess of $31.4 million, or $2,980 per sq ft, especially with the building anchored by a new retail podium and medical suites. The expression of interest exercise closes on July 21.PHOTO: CBRE

A plush office space on the top floor of the Somerset Tower at TripleOne Somerset, near Orchard Road, is on the market for about $31.4 million.

The office will be sold with existing tenancy, which The Straits Times understands to be luxury brand Gucci's local headquarters.

The 17th-floor office space generates a yield of 3.5 per cent per year, noted marketing agent CBRE.

Interest for the property is likely to be keen as few new strata office units in the Orchard Road area come up for sale.

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"We expect to receive strong offers in excess of $31.4 million, or $2,980 per sq ft (psf), and especially with the building anchored by a new retail podium and medical suites," said CBRE capital markets director Sammi Lim.

The expression of interest exercise for the office closes on July 21.

As a commercial property, the office unit is open to both local and foreign buyers, with no need to pay the additional buyer's stamp duty or seller's stamp duty.

TripleOne Somerset comprises two premium-grade office towers and a retail-cum-medical podium, with access to the Somerset MRT station.

As a commercial property, the office unit is open to both local and foreign buyers, with no need to pay the additional buyer's stamp duty or seller's stamp duty.

CBRE said the owner Perennial (Somerset) put the top floor unit on sale after it recently sold nine strata units in the tower recently.

These units were transacted at an average price of $2,800 psf to a range of buyers, including local and foreign companies and high-net-worth families.

Office prices in the Orchard Road area have been steep.

A 6,867 sq ft space in Tong Building was sold for $25.5 million ($3,713 psf) in April last year, while 7,330 sq ft in Orchard Towers went for $12.5 million ($1,705 psf) in July last year.

The office tenants at TripleOne Somerset include luxury fashion and lifestyle brands such as Gucci, Bottega Veneta, Kering, Elizabeth Arden, Samsonite and Bell & Ross.

A $120 million renovation is under way to enhance the retail offerings, incorporate medical suites and spruce up the office lobby and common areas.

A version of this article appeared in the print edition of The Straits Times on June 22, 2017, with the headline 'TripleOne Somerset office space put up for sale'. Print Edition | Subscribe