999-year leasehold office floors at Raffles Place up for sale at indicative price of $24 million

SINGAPORE (EDGEPROP) – JLL, is inviting offers through an Expression of Interest (EOI) exercise for the purchase of two contiguous 999-year leasehold office floors located at 62 Cecil Street, TPI Building #05-00 and #06-00, Singapore, 049710.

Completed in 1983, TPI Building is a six-storey 999-year leasehold office development located within the heart of Singapore’s Central Business District. Strategically located between Raffles Place Interchange and Telok Ayer MRT Station, the development is easily accessible via the East-West and the Downtown Line. The walk to Telok Ayer MRT station is fully-sheltered. The commercial development is easily accessible via major expressways and thoroughfares such as the Marina Coastal Expressway (MCE) and East Coast Park Expressway (ECP).

The two 999-year leasehold office floors are located on level five and six of TPI Building and have a total strata area of approximately 8,008 sq ft (or 4,004 sq ft per floor).

Each office floor comes with an exclusive lift lobby and has a regular, column-free layout allowing for efficient use of the space. The two office floors are to be sold with existing tenancies.

999-year leasehold office

Image credit: JLL

As Singapore’s key financial district, Raffles Place remains a bustling business hub with office buildings recording the strongest occupancy rates amongst other CBD submarkets, such as Marina Bay, Shenton Way/ Robinson Road/Cecil Street and Tanjong Pagar. Key new developments in the area include CapitaGreen as well as upcoming developments such as Robinson Tower and 88 Market Street (redevelopment of former Golden Shoe Carpark). CapitaGreen has since achieved close to full occupancy, evident of the strong demand for office space in the area.

Freehold and 999-year leasehold strata office floors within the Raffles Place vicinity are tightly held by owners and are seldom made available for sale. The last 999-year leasehold office floor transacted in the vicinity was the entire level 20 of Samsung Hub which was transacted in April 2018 at a record price of $3,550 psf on strata area.

Mr Clemence Lee, Associate Director, JLL, says: “Opportunities to own two contiguous 999-year leasehold office floors in the CBD are extremely rare and are highly sought after. The Property is well-poised for capital appreciation as the office rent and price recovery is underway. This is evident from the latest sale transaction in nearby strata office developments such as Samsung Hub, Springleaf Tower and The Octagon which have achieved record prices in their respective developments.

JLL, the exclusive marketing agent of the property, said the  999-year leasehold strata office floors within the Raffles Place vicinity will appeal to a range of investors such as boutique real estate funds, family offices, local companies and high net worth individuals or owner-occupiers, such as legal firms, financial institutions, IT firms, tech firms and small and medium-sized enterprises (SMEs).

According to Master Plan 2014, TPI Building has a Maximum Plot Ratio of 12.6+. With only three owners within the development and an existing plot ratio of 6.8, there’s an opportunity for the existing owners to band together to redevelop the building in order to maximize its plot ratio. Alternatively, Asset Enhancement Initiatives (AEI) works can be done to refresh and improve the image of the building.”

The indicative guide price for the two office floors is at $24 million, which translates to about $3,000 per sq ft on strata area.


As this is a commercial property, foreigners are eligible to purchase the property. There is also no Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) imposed on the purchase of the property.

The sale will be conducted through an Expression of Interest exercise which closes on Wednesday, 5 September 2018, at 3 p.m.

JLL earlier said that the biggest gainers following the new property cooling measures will likely be owners of strata-offices and shophouses approved for commercial use.

The real estate service company said: “The government’s swift response to curb home price growth has tampered the prospects of residential properties as attractive investments. Investors looking for alternatives to park their money could divert their attention to the strata office and shophouse markets as they are not subjected to this round of purchase or sales restrictions/encumbrances.”

Citing its research report JLL said that office space demand remains strong in Singapore fueled by flexible space operators. Office take-up in Southeast Asia accelerated over the last five quarters. In 1Q18 office take-up in the region grew by 6.8% year-on-year (yoy). Office demand is well correlated to Gross Domestic Product (GDP) growth in Southeast Asia and is expected to grow by 6% annually in 2018-2021.

The research report said that in Singapore, Grade A CBD office net absorption reversed the declining trend of 2015 and 2016 to hit a three-year high in 2017. The buoyant momentum continued into 2018, wherein the take up in the first three months of the year had already surpassed that for the whole of 2017.

“Much of this net absorption was fuelled by occupiers moving into their premises in recently completed buildings such as Guoco Tower, Marina One and UIC Building. This was, in turn, underpinned by the pick-up in leasing activity on the back of the brighter economic conditions that lifted market sentiment and business confidence and encouraged take-up,” said JLL Singapore head of research Tay Huey Ying.

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