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139 Cecil Street, a brand new 16-storey office building for sale at $218m

Ravi Philemon

139 Cecil Street, a prime opportunity to enter Singapore’s commercial market amid tight supply

CBRE and JLL on March 12 announced for sale a 100% interest in a brand new standalone building at 139 Cecil Street via an Expression of Interest (EOI) exercise.

Located in the heart of Singapore’s Central Business District (CBD), 139 Cecil Street is a 16-storey office building with a restaurant on the ground floor and a pool at the roof terrace. This is the result of an extensive 18-month Additions and Alterations exercise by the current owner to completely transform the former 11-storey building.

139 Cecil Street

Image credit: CBRE

The 16-storey office building at 139 Cecil Street is up for sale at $218 million.

The building is 100% leased for an initial six years to Campfire Collaborative Spaces, a Hong Kong co-working outfit. With a net lettable area of approximately 85,000 sq ft, the property will be Campfire’s largest site globally.

Following the government’s plan to rejuvenate the area into a business and lifestyle hub, the Shenton Way/Tanjong Pagar precinct has undergone a major transformation with the addition of Tanjong Pagar Centre, Frasers Tower and OUE Downtown, as well as the ongoing redevelopment of CPF Building and Afro Asia building.

139 Cecil Street is within a 500-metre radius to four MRT stations, namely Raffles Place, Telok Ayer, Downtown and Shenton Way on the Thomson-East Coast Line that will start operating in 2021. Given the close proximity to transportation nodes and a variety of amenities, the precinct is becoming an increasingly popular location of choice for diversified businesses, including professional services, technology, and major domestic and global financial institutions.

Mr Galven Tan, CBRE’s Executive Director, Capital Markets for Singapore said, “Investors acknowledge the positive outlook for the Singapore office market in view of tightening vacancy and a tapering supply pipeline. Given its prime location and strong attributes, we expect keen investor interest in 139 Cecil Street. The availability of naming and signage rights add to the appeal of this property.”

Mr Clemence Lee, JLL’s Singapore Senior Director, Capital Markets said, “139 Cecil Street offers investors an opportunity to acquire a brand new, high-quality standalone office building with a palatable investment quantum in Singapore. With a six-year lease to a strong anchor tenant in place, investors will be able to enjoy immediate, long-term and stable cashflow with built-in rental escalations”.

The EOI exercise for 139 Cecil Street will close on 17 April 2019.

Mr Paul Ho, Chief Mortgage Consultant at iCompareLoan, said that despite the property curbs introduced by the Government last year, Singapore is still an attractive residential market for investors.

Although the property market exuberance has been curbed to some extent with the property cooling measures introduced last year, Singapore as a property market investment destination still remains among the top – shoulder to shoulder with other cities in the world like London, New York, Shanghai and Sydney.

“We have to be mindful that there is a lot of excess capital fluidity here and at 1.9 – 2 percent, Singapore has one of the lowest interest rates for home loans in the region,” he added.

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The biggest gainers following the new property cooling measures is likely be owners of strata portfolio of offices and shophouses approved for commercial use. The property cooling measures affected almost all categories of buyers and is predicted to achieve its intended objectives of cooling demand and moderating price growth.

One report said investors looking for alternatives to park their money in the wake of property cooling measures, would divert their attention to the strata office and shophouse markets as they are not subjected to this round of purchase or sales restrictions/encumbrances.

A recent research report said that the Singapore prime office market is expected to record the highest rental growth among the various market sectors in 2019 as a tight supply pipeline in the next 24 months continues to boost landlords’ rental expectations.

The report by M&G Real Estate said that Singapore prime office rental growth should continue to outperform the rest of the region in 2019 as a limited supply pipeline and healthy demand raises landlords’ expectations. It added that the demand for Singapore prime office is likely to remain positive as the city continues to position itself as a business hub for foreign corporates seeking to establish an APAC or South-East Asian head office.

How to Secure a Commercial Loan Quickly

Are you planning to capitalise on the uptrend of the Singapore prime office market but unsure of funding for investment? Don’t worry because iCompareLoan mortgage brokers can set you up on a path that can get you a commercial loan in a quick and seamless manner.

Alternatively you can read more about the Best Commercial Loans in Singapore before deciding on your next purchase.  Our brokers have close links with the best lenders in town and can help you compare Singapore’s best commercial loans and settle for a loan package that best suits your commercial purchase needs.

Whether you are looking for a new commercial loan or for a refinancing package for your commercial properties, our brokers can help you get everything right from calculating mortgage repayment, comparing interest rates, all through to securing the best commercial loans which fits your profile. And the good thing is that all our services are free of charge. So it is all worth it to secure the best commercial loans through us.

You may contact us today for advice on a new commercial loan  or refinancing advice, or for Personal Finance advice.

You may also speak to our Panel of Property agents.

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