Ravi Chandran
Springleaf Tower office floors for sale at a guide price of $2,500 per square foot on strata area
CBRE said yesterday (21 July) that it will be launching Level 8 and 9 of Springleaf Tower for sale by way of Expression of Interest which will close on 25 August 2021 at 3 pm.
Springleaf Tower is a 37-storey Grade A office building with a 99-year leasehold tenure (w.e.f. 1996) at 3 Anson Road. Level 8 and 9 each has a strata floor area of approximately 10,333 sq ft and comes with exclusive use of the lift lobby, restrooms, and pantry. The subject property also features premium office specifications – including raised flooring, a 2.8-meter floor-to-ceiling height, and air-conditioning which allows for independent floor operation.
To be sold either individually or collectively, each floor has a guide price of S$25.83 million, which works out to approximately S$2,500 per square foot based on the strata area.
Both locals and foreigners are eligible to purchase the subject property, which is zoned for “Commercial” use. There will be no Additional Buyers’ Stamp Duty or Sellers’ Stamp Duty imposed on the purchase.
Springleaf Tower features a grand marble-clad office entrance lobby that has a height of three storeys. The building has a generous car parking provision of 131 lots across levels three to five and a sheltered drop-off point.
Given the building’s hi-specs quality and strategic location at the junction of Anson Road, Springleaf Tower has consistently enjoyed a high occupancy rate, accommodating a strong tenant profile from diverse trade mix.
Mr Michael Tay, Head of Capital Markets, Singapore at CBRE, says, “Springleaf Tower is tightly held by only a few owners, so it is relatively uncommon for office space within the building to be put up for sale. This would be a good opportunity for end-user occupiers to acquire quality premises for their own operations and be amid some of the MNC brands in the locale.”
The Tanjong Pagar precinct has undergone an exciting rejuvenation, anchored by Guoco Tower, Frasers Tower, and the newly completed 79 Robinson Road. There are also buildings scheduled to enter the sub-market upon redevelopment, including AXA Tower, Fuji Xerox Towers and Keppel Towers. The increasing popularity of Tanjong Pagar is reflected by the MNC tenants from a diverse mix of sectors – including ABN Amro, Allianz, ByteDance, Equinix, ING and Microsoft, all of whom have chosen to locate in this vicinity.
New lifestyle and F&B offerings now complement the commercial and residential elements which this area is traditionally known for, transforming Tanjong Pagar into a vibrant live-work-play community hub.
Strong investor interest is expected for Springleaf Tower office floors.
Mr Tay added, “The government’s CBD Incentive and Strategic Development Incentive schemes are set to transform the area into a future-ready CBD enclave with a live-work-play vision, comprising a dynamic blend of commercial, hospitality, residential and leisure uses. Furthermore, against the backdrop of a tight Grade A CBD office supply, we are optimistic that the offering will strongly appeal to investors with a mid- to long-term investment view to capitalize on the potential increasing rents and capital values.”
One recent transaction of strata Grade A office with the Central Business District is Level 9 at Samsung Hub which changed hands at S$4,050 per square foot in May 2021.
Springleaf Tower enjoys direct sheltered connectivity from Tanjong Pagar MRT station, and tenants and visitors can also utilize the well-linked underground walkways to access surrounding developments within the vicinity. Retail amenities and F&B offerings are aplenty, being closely located to Amoy Street Food Centre, Maxwell Food Centre, Lau Pa Sat Food Centre and the wide range of popular bars and restaurants at the shophouses along the Telok Ayer and Amoy Street.
Mr Paul Ho, the chief officer at iCompareLoan said: “Properties such as the Springleaf Tower office floors 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.”
Paul Ho
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.”
The biggest gainers following the several rounds of property cooling measures is likely be owners of strata portfolio of offices and shophouses approved for commercial use. The Covid-19 restrictions too affected almost all categories of buyers and is predicted to achieve its intended objectives of cooling demand and moderating price growth.
One report said investors looking for alternatives to park their money in the wake of property cooling measures, would divert their attention to the offices and shophouses markets as they are not subjected to this round of purchase or sales restrictions/encumbrances.
Mr Ho said that despite the property curbs introduced by the Government last year, Singapore is still an attractive residential market for investors.
Although the property market exuberance has been curbed to some extent with the property cooling measures and Covid-19 measures, Singapore as a property market investment destination still remains among the top – shoulder to shoulder – with other cities in the world like London, New York, Shanghai and Sydney.
“We have to be mindful that there is a lot of excess capital fluidity here and at 1.9 – 2 percent, Singapore has one of the lowest interest rates for home loans in the region,” he added.
