SINGAPORE (EDGEPROP) - Two office floors at Malacca Centre in Raffles Place have been offered for sale by public tender, announced CBRE the marketing agent.
The office space comprises 1,830 sq ft on the 9th floor and 2,142 sq ft on the 16th floor. According to CBRE, the office space can be sold individually or collectively. The indicative price for the 9th office floor office property is $6 million ($3,278 psf) while the office space on the 16th floor is going for $6.88 million ($3,211 psf).
Collectively the properties have a guide price of $12.88 million ($3,242 psf)
Malacca Centre is one of a few 999-year leasehold commercial developments in the Central Business District, and the development sits above Raffles Place MRT Interchange. The property features retail units on the ground floor and basement.
“Investors continue to show keen interest in Singapore as an investment destination. The strong confidence stems from our city’s economic and political stability, as well as a solid track record of real estate investments that provide growth in capital values,” says Michael Tay, head of capital markets, Singapore at CBRE.
He adds that prime strata office space is highly sought after by family offices or high net worth individuals as part of wealth preservation strategies.
New office supply is expected to be relatively tight over the next three years due to project delays because of the pandemic, but investors remain keen on this asset class to tap into potential capital gains over the long term, says Tay.
Strata office spaces with a freehold or 999-year tenure in the CBD rarely come onto the market. The last transaction at Malacca Centre was in March 2020 when the entire office space on the 11th and 12th floors were sold for $6 million and $5.82 million.