A SIX-storey office building in District 9 has been put on the market. The indicative price for 182 Clemenceau Avenue is S$90 million, which works out to S$1,936 per square foot based on the building's existing net lettable area of 46,490 square feet.
On the 55,493 sq ft existing gross floor area, the indicative price translates to S$1,622 psf. The building is on a site with 99-year leasehold tenure starting from Sept 24, 1993, reflecting a balance lease term of about 75.5 years.
Situated between Singapore Shopping Centre and Haw Par Centre, the property is a stone's throw from Dhoby Ghaut Interchange MRT Station.
Except for the ground floor, which is leased to Roberto Design, the rest of the building is vacant. This creates a good opportunity for either owner occupiers, or investors keen to explore asset enhancement initiatives - for instance by giving the facade a makeover, renovating the toilets and other common areas, and reallocating spaces within the property," said Anthony Barr, regional director, investments, at JLL.
The property consultancy group is marketing 182 Clemenceau Avenue through an expressions of interest exercise that will close on March 30.
The existing GFA of 182 Clemenceau Avenue is already the maximum allowed for the 12,007 sq ft site under Master Plan 2014; the site is zoned for commercial use with a plot ratio of 4.2+.
While there is no immediate redevelopment potential for the asset, it is ripe for asset enhancement.
The property is owned by Reagle Investment Holdings, which in turn is fully owned by a Mauritius-incorporated company, the shareholders of which are understood to be a group of offshore investors. The group acquired the property for about S$74 million in 2011 from Silverpeak Real Estate Partners. Silverpeak was launched in 2010 as an independent advisory business to the former Lehman Brothers Real Estate Private Equity funds. A former Lehman fund was reported to have bought the property in 2007 for about S$85.5 million from Loo Choon Yong of Raffles Medical Group.
"The building's location between Orchard Road and the business district gives it a broad appeal. Fashion, insurance, medical, education and finance have all been industry types that have previously occupied this building," said Mr Barr. The property offers a large street frontage complemented by a double-height volume ground floor that lends itself well to retail use.
Each of the top four levels of the building has a net lettable area of 9,623 sq ft.
The locale is poised for a rejuvenation with the redevelopment of Park Mall into a new Grade A office and retail development, and the conversion of the House of Tan Yeok Nee into a high-end Traditional Chinese Medicine centre. The increased vibrancy in the area could spill over to 182 Clemenceau Avenue, providing a fillip to its rental and capital values, suggested Mr Barr.
Source: Business Times, 28 Feb 2017