Amazing En Bloc Opportunity Among Office Market Short Supply
The office and rental markets have been performing well over expectations, especially in the Bugis area with recent transactions like Duos and Bugis Junction Towers, followed by the latest collective sale launch of Bugis Cube through public tender exercise open till 3 pm, November 14, 2019.
Like the Bugis Junction Towers, it is being marketed by Cushman and Wakefield at an asking price of S$230 million.
Having agreed by the owners of more than 80% of the share value and strata area, it has promptly met the statutory requirements, though it was renovated and renamed as recently as 2013.
This six storey (its maximum height allowed) commercial building previously called the North Bridge Commercial Complex at 470 North Bridge Road has 66,614 sq ft GFA and a plot ratio of 5.735 and houses 119 strata-titled retail shops ranging in size from 29 sq ft to 635 sq ft.
It sits on 11,615 sq ft land area zoned commercial under Master Plan 2014 with plot ratio 4.2 with an attractive 999-year leasehold tenure.
While locals, PRs and foreigners are eligible to buy, it attracts no ABSD and SSD charges.
Annalyn Ooi, Associate Director – Capital Markets envisions the opportunity to transform the building through co-working spaces, professional services, healthcare or technology firms with renaming rights.
The Bugis Junction Towers transacted last week fetched S$547.5 million to its previous owners Keppel Reit along with steady returns at 19.4% per annum during their 13-year holding period.
The Bugis Cube has almost a similar history when the previous owner Griffin Real Estate Investment Holdings acquired the asset for $46 million in 2009 and sold some of its strata-titled spaces for a total value of $142 million.
It was followed by Gryphon Estate Management Pte Ltd in 2013, when it was retrofitted into Retail/F&B/Office at designated levels with a basement carpark.
The shareholders of Duos also had maximum returns when their office and retail assets were transacted at $1.575 billion recently in July this year.
Easily accessible through City Hall and Bugis MRT stations, and through East Coast Parkway (ECP) and Marina Coastal Expressway (MCE), the Bugis Cube is completely self-sufficient with malls, supermarkets, educational institutions, recreational and night entertainments around.
It is situated in the Bras Basah and Bugis neighbourhood area which is home to well sought-after condos like Fraser Place Robertson Walk, Lanson Place Winsland Residences, 1919 at Sophia and Aspen Heights.
Also need to mention the prestigious upcoming projects like Guoco Midtown and Shaw Towers apart from GLS sites awarded very recently in Tan Quee Lan Street and Middle Road for development.
With limited office space supply in the market, the Bugis Cube provides an amazing opportunity for corporate headquarters in the hub of Asia.