Strata Office Units Sale Cecil Place 3780 Psf
A new 15-storey strata-titled office development, Cecil Place, has been launched at 137 Cecil Street. The former office building has been redeveloped by DP Architects and will feature 30 strata office units for sale and a three-storey retail podium. It is expected to be completed next year. Prices for the strata office units start from $3,780 psf.
Melvin Chay, senior director of capital markets at Knight Frank Singapore, believes that Cecil Place will attract businesses who wish to upgrade to a newer building with higher specifications, as well as those looking to relocate to the prestigious CBD area for better connectivity and a more prestigious address. Early enquiries have come from the owners and occupiers of Shenton House, which was sold en bloc to Lee Yeow Seng, CEO and major shareholder of Malaysia-listed IOI Properties Group. With Shenton House set for redevelopment in 2027, en bloc beneficiaries are reinvesting their capital while tenants are actively searching for new premises before its demolition.
The strata office units at Cecil Place, designed with flexibility in mind, are spread across the fourth to 15th levels of the building. Individual units range from 1,765 sq ft to 3,918 sq ft, with a typical floor plate of 6,544 sq ft. Each unit comes with a private en suite toilet and a kitchenette. The 15th level features an open-air terrace measuring 2,152 sq ft, offering views towards Chinatown.
The retail podium consists of two first-floor units with mezzanine levels (5,037 sq ft and 4,639 sq ft) and two additional shop units on the second and third levels, ranging from 2,830 sq ft to 3,939 sq ft. The developer is carefully selecting tenants for the retail podium to ensure a complementary mix of F&B, healthcare and service providers. Chay emphasises that strong and relevant retail tenants will not only add vibrancy to the ground level, but also enhance the long-term value of the development.
The site, previously the Aviva Building, was acquired by the Zhou family of China’s Shanghai Hengda Group for $210 million in 2015. The same family holds a 60% stake in the neighbouring YSY Building (formerly Cecil House at 139 Cecil Street), which has undergone a two-year refurbishment and is now fully leased.
Solitaire on Cecil, a 20-storey freehold development, is located across the road from 137 and 139 Cecil Street. It was redeveloped from the former PIL Building by a joint venture between TE Capital Partners and LaSalle Investment Management, who acquired the site for $323.8 million in February 2022. The final three strata office floors at Solitaire were sold within 16 months of its launch in March 2023, with prices ranging between $4,130 and $4,200 psf. The sale of all three floors was brokered by Yap Hui Yee, executive director of investment sales and capital markets at Savills Singapore.
Meanwhile, 108 Robinson Road was acquired by PGIM Real Estate in 2021 for $143 million. The 12-storey, freehold office building was fully refurbished and launched for strata sale in early 2024. Currently, only the third-floor office unit remains available for sale. The largest deal was in May this year when three floors, spanning 14,252 sq ft, were sold for $55.8 million ($3,915 psf) to Kwan Im Thong Hood Cho Temple. The sale was brokered by Low Choon Sin, managing partner of SRI Capital Markets. The retail units on the first and second levels, with a total floor area of 6,728 sq ft, were also sold for $27.68 million ($4,115 psf) to Toa Payoh Seu Teck Sean Tong.
According to Knight Frank’s Chay, Cecil Place is competitively priced compared to recent strata office transactions in the CBD, such as the range of $4,130 to $4,200 psf at Solitaire on Cecil and $3,915 psf at 108 Robinson Road. For instance, a typical 3,918 sq ft office unit at Cecil Place would cost about $14.81 million, which is lower than the absolute prices achieved at both 108 Robinson and Solitaire on Cecil. The development also boasts a convenient location, within walking distance of three MRT stations: Telok Ayer, Shenton Way, and Tanjong Pagar.
The lack of new strata office supply can be partly attributed to the Urban Redevelopment Authority’s (URA) restrictions on the subdivision of commercial office buildings in the Central Area, including the CBD, from March 15, 2022. The measure aims to improve the long-term maintenance and quality of prominent commercial developments and discourage fragmented ownership, according to URA.
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Chay highlights that the strong sales seen at Solitaire on Cecil and 108 Robinson Road reflect the continuing demand for freehold strata offices in the CBD. He believes that Cecil Place offers a rare opportunity to own a prime freehold asset in the CBD at competitive prices and expects it to have healthy price support and long-term capital appreciation due to the strong demand drivers and limited future supply.