EIGHT ground-floor strata retail units at 20 Cecil Street have been put on the market for individual sale by private treaty, with asking prices ranging from S$3.8 million to S$7.75 million.
Based on the units’ strata area range of 388 square feet (sq ft) to 807 sq ft, this translates to a per square foot (psf) price of about S$9,603 to S$9,794.
On Thursday (May 16), exclusive marketing agent CBRE said the strata units offered yields of above 3 per cent, and it hence expects “strong interest from a wide range of investors including boutique real estate funds, family offices, local companies and high-net-worth individuals”.
Each unit is fully tenanted and comes with food and beverage provisions.
Such retail units therefore offer investors a “turnkey opportunity in a prime location”, said CBRE, adding that the opportunity is “equally compelling for owner-occupiers looking to secure a prime Central Business District (CBD) retail space for the long term or to mitigate rising rental costs”.
The agent also suggested that the units may be utilised for showroom, banking hall, medical and fitness studio purposes upon expiry of the tenants’ existing leases.
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Noting an increasing shift towards strata commercial properties in response to the high amount of Additional Buyer’s Stamp Duty payable in the residential segment, CBRE said the strata asset class offers more stable and resilient returns in comparison.
This is because commercial strata tenants are “typically more well-capitalised” compared to residential tenants, in the agent’s view.
“Additionally, there is more liquidity for commercial properties when investors are looking to exit in the future, as there will be a wider and more diverse buyer pool,” observed CBRE.
It said that the CBD’s supply of retail units will remain low or may shrink further, in view of the Urban Redevelopment Authority (URA) limiting the future sub-division of commercial assets within designated areas in the district.
This is coupled with the redevelopment of older strata buildings such as Shenton House, which was sold to IOI Properties’ Lee Yeow Seng in late 2023.
The property at 20 Cecil Street was acquired by a joint venture between niche property developer DB2 and mainboard-listed Vibrant Group in 2014, when it was then known as Equity Plaza.
Retail units of the building’s first two levels were bought by DB2’s founder and chief executive, Dennis Leong.
The 28-storey Grade A office tower has since been renamed Plus and is currently owned by a private fund of CapitaLand.
Based on URA data, two retail units at Plus changed hands for S$4 million and S$2.6 million in February this year, translating to S$4,900 psf and S$4,804 psf, respectively.
