Ravi Chandran
Suntec Tower Two prime office floor comes with a guide price of S$3,303 psf which is reflective of current market sentiments
Savills Singapore announced on November 11 that as the exclusive sole marketing agent, it is pleased to offer for sale a prime office floor of approximately 9,989 square foot at Suntec Tower Two. The offering features four contiguous premium office units located on level 42 of Suntec Tower Two, the third highest floor in the development.
Suntec Tower Two is part of Suntec City, one of the largest integrated developments in Singapore consisting of five Grade-A office towers, a shopping mall and a world-class exhibition centre. Completed in the mid-1990’s and designed to be a “city within a city,” Suntec City integrate various development components into a coherent urban centre that connects the adjacent developments and the extension of Singapore Central Business District. It enjoys seamless connectivity with sheltered access to three MRT stations, namely City Hall Interchange station, Promenade and Esplanade MRT stations and link bridges, underpasses to adjoining developments in the Marina Centre area.
The Suntec Tower Two prime office floor and are investment-grade and are designed with no internal columns to ensure efficient office space planning. The Suntec Tower Two prime office floor space is arranged around a central service core to allow for maximum views and natural light. There are separate high-speed elevators serving the low, mid, and high-rise zones in the buildings.
Mr Galven Tan, Deputy Managing Director, Investment Sales and Capital Markets, Savills Singapore, noted: “The offices on the high floors of Suntec City are always extremely sought after, as it is arguably the only strata office development which offers unobstructed views of the city skyline and waterfront. This is an extremely rare opportunity to acquire one of the highest floors with panoramic views of the Marina Bay Financial District, city skyline, Kallang River and Singapore Sports Hub.”
Suntec Tower Two is currently undergoing asset enhancement work which includes upgrading of the entrance lobby, reception and concierge area, lift lobbies and restrooms. The upgrading works will continue to strengthen the value proposition of the office floors.
“This offering is an exceptional opportunity. The entire floor is currently 100% leased to Multi-National Companies (MNCs), thus offering an investor strong tenant covenants and immediate rental income. Two of the tenants have recently renewed their tenancies which is testament that office space is still essential as employees require the psychological and emotional benefits of a tightly woven team and strong corporate culture found in the workplace”, added Mr Tan.
The guide price for the Suntec Tower Two prime office floor is S$33 million, translating to an average price of S$3,303 psf on strata area.
The portfolio of four strata units is offered for sale as a bundle and with tenancies. Both foreigners and companies are eligible to purchase the Suntec Tower Two prime office floor and there will be no additional buyer’s stamp duty or seller’s stamp duty imposed.
Mr Paul Ho, chief Mortgage Officer at iCompareLoan, said: “the Suntec Tower Two prime office floor is coming to the market at a time when sales of offices in Suntec City are robust. There have been at least five transactions recently concluded in Tower 1. The latest unit sold on the 37th storey transacted at S$2,890 psf in May this year, while another unit on the 33rd storey in Tower 2 also transacted at a high of S$3,209 psf earlier in January.”
“The guide price of S$3,303 psf for the Suntec Tower Two prime office floor is slightly higher than the recent office transactions at Suntec City but is reflective of current market sentiments. The offering is likely to appeal to owner-occupiers and investors, who believe in commercial properties as safe haven assets.”
Suntec City is a major mixed-use development located in Marina Centre, a subzone of the Downtown Core in Singapore, which combines a shopping mall, office buildings, and a convention centre. Construction began on 18 January 1992 (with earthworks) followed by full completion and opening on 22 July 1997.
Suntec City was designed by Tsao & McKown Architects with emphasis on Chinese feng shui. The five buildings and the convention center are arranged so that they look like a left hand when viewed aerially. The Fountain of Wealth appears like a golden ring in the palm of the hand. As the fountain is made of bronze, it is believed that the balance of metal and water paves the way for success. Further, the specially selected Chinese name, 新达, means “new achievement”.
The Suntec office towers comprise five buildings named Towers One through Five with four containing 45 stories and one 18 stories. The latter has 28,000 square feet of net lettable floor area on each floor while the 45-storey towers consist of floor plates ranging from 10,000 to 14,000 square feet. In total, there are about 2.3 million square feet of office space. Tower One to Four is 45-storey representing the 4 fingers and Tower 5 is 18-storey representing the thumb.
Suntec City Office Towers houses a number of foreign diplomatic/non-diplomatic missions that are resident in Singapore. Embassy of Spain on the 39th floor of Tower 1, Hong Kong Economic and Trade Office on the 34th floor of Tower 2, Embassy of Rwanda on the 14th floor of Tower 3, Embassy of Chile on the 24th floor of Tower 3, Embassy of Qatar on the 41st floor of Tower 3, and the Taiwan Trade Center on the 9th floor of Tower 4.
- The Urban Redevelopment Authority (URA) mentioned Suntec City as one of the largest commercial developments in Singapore.
- Suntec City was awarded two FIABCI Prix d’ Excellence awards for excellence in all aspects of real estate development (Overall winner and Commercial / Retail winner) in 1999. Suntec has claimed other prizes, including the 1998 Tourism Award from the Singapore Tourism Board.
- Suntec City has been featured three times on The Amazing Race reality television show. Once on the US version Season 3 and twice on the Asian version in both Season 1 and Season 2.
