3 floors at The Octagon up for bulk sale

The prime ground-floor retail unit and two office floors at The Octagon offered for sale have a total indicative price of $43 million.
The prime ground-floor retail unit and two office floors at The Octagon offered for sale have a total indicative price of $43 million.PHOTO: CUSHMAN & WAKEFIELD

Three floors at The Octagon, a 25-storey freehold office building at 105 Cecil Street, have been launched for bulk sale by tender.

The prime ground-floor retail unit and two office floors have a total indicative price of $43 million, which works out to $3,500 per square foot (psf) for the retail floor unit and $2,450 psf for the office floors, sole marketing agent Cushman & Wakefield said yesterday.

Located on the first, second and fourth floors, the properties have a total strata area of around 15,995 sq ft. The ground-floor retail unit occupies 3,617 sq ft while the two office floors have an area of 6,189 sq ft each.

The ground-floor unit is leased to a fitness centre while the two office floors are occupied by two separate childcare centres, according to Cushman & Wakefield.

The Octagon is located at the junction of Boon Tat Street and Cecil Street, and is within walking distance of Raffles Place and Telok Ayer MRT stations.

Mr Shaun Poh, executive director of capital markets at Cushman & Wakefield, said there continues to be strong interest for freehold strata retail and office floors within the central business district (CBD).

"The recent CBD incentive scheme announced at the launch of the URA Draft Master Plan has also encouraged the owners of older office buildings to relook their options for their properties," he added.

In February, a company controlled by the Murdaya family behind Indonesian conglomerate Central Cipta Murdaya increased its presence at The Octagon by purchasing another three levels - 14, 15 and 17 - for nearly $45.5 million. This worked out to $2,450 psf based on the 18,568 sq ft of total strata area.

RELOOK OPTIONS

The recent CBD incentive scheme announced at the launch of the URA Draft Master Plan has also encouraged the owners of older office buildings to relook their options for their properties.

MR SHAUN POH, executive director of capital markets at Cushman & Wakefield, on the strong interest for such properties.

It previously spent $30.3 million for levels nine and 10, a deal which also worked out to $2,450 psf. The family already owns the top two floors of the building.

Mr Poh added that unlike the five strata floors sold recently, the latest three floors offered are fully occupied and the space up for sale includes the entire ground-floor retail unit.

"Prime ground-floor retail space in the core CBD is highly sought after and hardly available for sale," he said.

The tender exercise will close at 3pm on July 3.

A version of this article appeared in the print edition of The Straits Times on May 28, 2019, with the headline '3 floors at The Octagon up for bulk sale'. Print Edition | Subscribe