Singapore 21 June 2017 – CBRE has successfully sold several strata units on the seventh floor at TripleOne Somerset on behalf of its owner Perennial (Somerset) Pte Ltd. Following the successful sales, Perennial has now placed the penthouse floor for sale via an Expression of interest Exercise.
The strata units were sold at an average price of approximately $2,800 per square foot during the recent Expression of Interest exercise conducted in February 2017. Buyers of these units comprise a mix of local and foreign companies and high-net-worth families who intend to occupy part of the space for their own use and hold the remaining space for long term investment as well as future expansion.
The prized penthouse is located on the top most floor of the 17th storey integrated development in Singapore’s premium Orchard Road shopping belt. The entire top floor was renovated and is currently leased by one of the world’s largest luxury groups as its headquarter office in Singapore.
The entire top floor in the Somerset Tower with strata area of approximately 979 sq m / 10,537 sq ft comes with a robust and stable rental income stream which generates an attractive yield of 3.5% per annum.
Sammi Lim, Director, Capital Markets, CBRE said, “This is an extremely rare opportunity to purchase a penthouse office floor in Singapore’s prime Orchard area where there has not been a launch of new strata office units for sale in over three decades. Only units in the secondary market are available, and they are typically in ageing buildings that are in need of a makeover. Owing to scarcity, even units in these properties are trading at premium prices. We expect to receive strong offers in excess of $32 million, or $2,980 per square foot, and especially with the building anchored by a new retail podium and medical suites.”
In May 2015, CBRE brokered the entire 13th floor at Tong Building in Orchard Road sold to Chopard at $25.5 million, or $3,713 per square foot.
TripleOne Somerset is a 17-storey prime integrated development with two premium-grade office towers and a retail-cum-medical podium with a sheltered seamless access to the Somerset MRT station. It benefits from dual drop off points along Somerset Road and Devonshire Road and a high car parking provision of approximately 400 lots – a luxury compared with most shopping malls in the Orchard precinct which suffer from a lack of parking space. It is highly regarded as a premium strata commercial office with a strong profile of owner occupiers and tenants consisting of luxury fashion and lifestyle brands such as Gucci, Bottega Veneta, Kering, Elizabeth Arden, Bell& Ross and Samsonite.
It is now undergoing an extensive asset enhancement exercise which is led by Perennial Real Estate Holdings Limited, the catalyst behind a string of successful mall revamps including CHIJMES and Chinatown Point. When the transformation of the TripleOne Somerset is completed, the building will have a shimmery new gold facade, transforming it into a new landmark. TripleOne Somerset will also be revamping its retail podium to introduce an exciting and vibrant retail offering, which include a wide array of specialty food as well as food and beverage stalls with communal seating. The office lobby will host a concierge service counter and the common corridors and lift lobbies on every level of both Somerset and Devonshire Towers will also be completely refreshed. A new stretcher lift will be installed to facilitate the new medical suites from Basement 1 to Level 4. In addition, the vertical connectivity between the carpark, retail podium and medical suites will be improved with the introduction of escalators from Basement 2 to Level 4.
As a commercial property, this purchase is open to both local and foreign buyers, and with no additional buyers’ stamp duty (ABSD) or sellers’ stamp duty (SSD).
CBRE is the sole marketing agent for this Expression of Interest Exercise.
The tender closes on 21 July 2017, Friday at 3 pm.
*Area subject to final survey.