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A 50 percent stake in prime office development Capital Sqaure has been put up for sale by expression of interest (EOI), marketing agent CBRE said Thursday (2 April).
Capital Square owner Pacific Champion Group has appointed CBRE and JLL as joint marketers of the property.
Located in the Raffles Place district within the CBD, the 16-storey office building also offers retail amenities and heritage shop-houses. The property was developed by Keppel Land which, through its investment company, owns the remaining 50 percent.
The property offers a total Net Lettable Area (NLA) of approximately 388,215 sq ft split between 3 components – a 16-storey Grade A office building at 23 Church Street, a standalone 2- and 3-storey terrace shophouses mainly for office use at 21 Church Street, and 2- and 3-storey terrace shophouses for both F&B and office uses at 25 Church Street.
The components offer NLAs of 340,605 sq ft, 20,624 sq ft, and 26,986 sq ft respectively.
Greg Hyland, Head of JLL’s Singapore Capital Markets team said, “The Singapore office market continues to perform strongly with CBD office rents gaining over 14 per cent in 2014 – the strongest across Asia Pacific.”
In addition, CBRE expects Capital Square to appeal to offer buyers for its “excellent location, high building specifications, blue chip tenant profile and secure income stream.”
Separately, earlier reports said Keppel Land’s Alpha Investment Partners is also planning to sells its 50 percent stake in the development.
The plans to sell comes after office rents in the city-state’s financial district rose by 14 percent last year, according to a Bloomberg report citing a JLL statement.
Meanwhile, CBRE said that rental rates for Grade A buildings in Raffles Place are currently in the range of S$ 12 to 14 per sq ft, which the firm says remains well below the peak of 2008.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg.
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