'Rare' strata office portfolio in Tanjong Pagar's GB Building up for sale

The portfolio comprises a podium block and four office floors in GB Building, a 26-storey commercial building located at the junction of McCallum Street and Cecil Street.
The portfolio comprises a podium block and four office floors in GB Building, a 26-storey commercial building located at the junction of McCallum Street and Cecil Street.PHOTO: CBRE

SINGAPORE - A "rare" strata office portfolio in the Tanjong Pagar area has been launched for sale via an expression of interest (EOI) exercise, commercial real estate services and investment firm CBRE announced on Wednesday (Aug 1).

The portfolio comprises a podium block and four office floors in GB Building, a 26-storey commercial building located at the junction of McCallum Street and Cecil Street.

The guide price for the podium block is $3,200 per square foot (psf), while that for the four office floors is $2,000 psf.

Collectively, the properties available for sale consist of five strata titled units with areas ranging from 3,294 sq ft to 13,067 sq ft. The combined strata floor area is about 39,590 sq ft, and commands about 27.3 per cent of the Management Corporation Strata Title (MCST) share value, CBRE said.

According to the real estate firm, each strata floor can be partitioned into smaller units to cater to different businesses, or leased to multiple tenants.

As the properties are zoned "commercial", they are not subject to additional buyer's stamp duty (ABSD) or seller's stamp duty (SSD), and are eligible for purchase by local and foreign buyers.

GB Building is situated close to Amoy Street Food Centre and within walking distance to three MRT Stations - Tanjong Pagar station on the East-West Line, Telok Ayer station on the Downtown Line, and the upcoming Shenton Way station on the Thomson-East Coast Line.

 

Said CBRE director of capital markets Sammi Lim, who expects interest to be strong: "This is a rare opportunity for investors to own substantial strata commercial floors in a building, and hold a significant stake in the MCST. The units offer immediate rental income, while providing flexibility for end-user occupation in the medium to long term."

She added that recent strata office transactions at SBF Centre, located just next to GB Building, were in the range of $2,800 psf to $3,053 psf, and that podium floors are rarely available for sale, with the last such transaction in the central business district being Prudential Tower in 2017, which was sold at about $3,316 psf.

"In addition to the ongoing rejuvenation in the area, the government's development plans for Tanjong Pagar as the next waterfront city will have positive knock-on effects on both capital and rental values of existing developments in this vicinity," Ms Lim said.

CBRE is the sole marketing agent for this EOI exercise, which closes at 3pm on Sept 5.