Prime CBD Redevelopment site launched for sale by tender

(Image: Knight Frank)

Prime CBD Redevelopment site is expecting offers in excess of S$1,800 psf ppr

Knight Frank Singapore, announced on Feb 17 that it has been appointed as the exclusive marketing agent of IOB Building, 64 Cecil Street. In announcing the prime CBD redevelopment site Knight Frank said that it is available for sale by tender.

prime CBD redevelopment site
(Image: Knight Frank)

IOB Building, prominently located at the junction of Cecil Street and Cross Street, is a 6-storey office with 2 levels of basement carpark. The property has a tenure of 99 years with effect from May 1983 and a site area of 891.8 sq m (approx. 9,599 sq ft).

Under the Urban Redevelopment Authority’s (URA) 2019 Master Plan, the prime CBD redevelopment site is zoned “Commercial” with an allowable Gross Plot Ratio (GPR) of 12.6. Subject to approval from the relevant authorities, a new 15-storey office with total gross floor area of approximately 120,947 sq ft can be developed on the site. An outline application for change of use to “residential with commercial at the 1st-storey” and “hotel” has been submitted to URA and a reply is expected soon.

Landmarks in the immediate vicinity of the prime CBD redevelopment site include CapitaGreen, Manulife Tower, Prudential Tower and upcoming development CapitalSpring and The Clan Hotel. IOB Building is located across Telok Ayer MRT station on the Downtown Line is and walking distance to both Raffles Place MRT interchange and the upcoming Shenton Way MRT station on the Thomson-East Coast Line.

Building information of the prime CBD redevelopment site and 6-storey office building

IOB Building is a 6-storey office building along Cecil Street. Situated within walking distance from Raffles Place and Telok Ayer MRT Stations, this development is well-connected to the Central Business District and its adjacent financial and business sites. Named after the Indian Overseas Bank, the first bank from India to operate in Singapore, the bank’s fully automated Singapore branch offers easily accessible banking services.

Building name








IOB Building


Shenton Way-Robinson Rd-Cecil St




64 Cecil Street


Year built




Typical floor area


Total area






7,500 sqft


43,400 sqft


Parking ratio


1 lot for every TBA sf leased



The location of prime CBD redevelopment site, IOB Building, will appeal to millennial workers in the finance and technology sectors, given its accessibility and proximity to the conserved district at Telok Ayer, a unique district that features shophouses of the Early, Transitional, Late and Art Deco Shophouses. The area also offers an extensive range of food and beverage offerings across a wide spectrum of price points.

Inclusive of a differential premium for intensification of the prime CBD redevelopment site and extension of the lease to 99 years, the owner is expecting offers in excess of S$1,800 psf ppr.

Realty Centre along Enggor Street transacted in April 2019 for S$148 million or S$2,438 psf ppr, should it be developed into a full commercial property.

“We believe that IOB Building presents a truly unique and rare redevelopment opportunity within the Central Business District (CBD) given the exceptional, tightly held commercial market in Singapore,” says Mr Ian Loh, Head of Investment and Capital Markets (Land, Building & Collective Sales), Knight Frank Singapore.

“The government has not placed any office sites on the Confirmed List under its GLS programme – there is only one white site at Marine View under the Reserve List. As such, we expect the office supply in the CBD to remain low, until 2025.”

The tender for the prime CBD redevelopment site, IOB Building, will close on 24 March 2020, Tuesday at 3.00 pm.

Mr Paul Ho, the chief mortgage consultant at iCompareLoan said: “Properties such as the prime CBD redevelopment site may be bought under personal name, but total debt servicing Total Debt Servicing Ratio (TDSR) will apply on the individual’s income on such purchases. To buy a commercial or industrial property under company name, total debt servicing ratio TDSR also applies on the individual director’s income if the company is an investment holding company or an operating company that is loss-making or does not have sufficient cash flow to servicing the repayment.”

He added: “To buy a commercial or industrial property under company name where the company is well established with an existing operating business with strong financials, TDSR may be waived on the individual. However director is usually required to become personal guarantors of the loan the company undertakes. Hence this may affect the director’s other purchases, such as for buying a residential property, due to the loading from the TDSR for guaranteeing a loan.

Some banks even advertise 100 to 120% loan. This is due to a combination of working capital as well as commercial/industrial property loan, but this only applies to company with strong cash flow position. Commercial property is different from residential property and the considerations are more complex and varied though the payoff may be worthwhile for investors.”

Following the government’s plan to rejuvenate the area into a business and lifestyle hub, the Shenton Way/Tanjong Pagar precinct has undergone a major transformation with the addition of Tanjong Pagar Centre, Frasers Tower and OUE Downtown, as well as the ongoing redevelopment of CPF Building and Afro Asia building.

The prime CBD redevelopment site is within a 500-metre radius to four MRT stations, namely Raffles Place, Telok Ayer, Downtown and Shenton Way on the Thomson-East Coast Line that will start operating in 2021. Given the close proximity to transportation nodes and a variety of amenities, the precinct is becoming an increasingly popular location of choice for diversified businesses, including professional services, technology, and major domestic and global financial institutions.

Written by Ravi Chandran

Joo Chiat conservation shophouse

Joo Chiat conservation shophouse for sale via Expression of Interest


Retailers at CapitaLand malls affected by Covid-19 to get rental relief