International property consultant, Colliers International is soliciting Expression of Interest (EOI) for One Finlayson Green, a 19-storey landmark commercial development located in the heart of Singapore’s Central Business District (CBD).
The fund that owns the subject property has obtained in-principle approval to sub-divide the development into 15 strata titles. The EOI is applicable for en-bloc or on a floor-by-floor basis.
Sitting on a freehold land of approximately 8,334 sq ft, One Finlayson Green has a gross floor area of some 115,517 sq ft and strata area of 96,132 sq ft. It houses a double volume retail unit on the ground and 2nd floor, and office units from the 6th to the 19th storeys. Car park facilities are available on the third and fourth levels.
Under the 2008 Master Plan, the subject site is zoned for “Commercial” use with an allowable plot ratio of 12.6+ and a maximum height of up to 35 storeys.
The indicative price is about S$260 million to S$280 million based on a price range of between S$2,600 per sq ft and S$2,800 per sq ft of strata area for the office component and at least S$4,000 per sq ft for the retail space.
Mr Dennis Yeo, Managing Director of Colliers International Singapore, says, “On the back of a recovering economy, strengthening business confidence, increasing tenant demand and tightening of office space supply in Singapore, we are confident in receiving strong interest for this building given that it is a quality development located strategically at a cross junction between Raffles Place and the new Marina Bay Financial District.
Of late, there has been an increase in transaction activities seen for commercial properties in Singapore. For instance, Chevron House, a 99-year leasehold commercial development, recently changed hands at S$547 million (S$2,083 per sq ft), and this is 25 per cent below its transacted price of S$2,780 per sq ft in 2007. Also, two developers out of a consortium of three sold their respective stakes in the Phase 1 of Marina Bay Financial Centre for between S$1.4 billion and S$1.5 billion (S$2,450 per sq ft to S$2,568 per sq ft).
For strata titled transactions, four strata floors at Samsung Hub, totaling 52,431 sq ft, were sold for S$111 million (S$2,125 per sq ft). A 2,928 sq ft office unit in Suntec City Tower 3 was sold for S$2,450 per sq ft while two retail units (5,263 sq ft) at Malacca Centre, which is located close to One Finlayson Green were sold for approximately S$4,000 per sq ft.”
“Given One Finlayson Green’s freehold tenure, prominent location and proximity to Raffles Place MRT, it is a highly desirable property and would appeal to institutional fund groups, corporate end users, as well as high net worth individuals,” adds Mr Yeo.
The subject property currently enjoys full occupancy, with some 20 reputable tenants including The AIA Group, Eversheds LLP and NIBC Bank.
The current average passing rent is just above S$8 per sq ft and the recent renewals for next year are in the region of S$10 per sq ft.
One Finlayson Green was built in 1994 and it has undergone upgrading works in the last two years, some of which included improving the external façade, the lift lobby, lightings and restrooms, among others.
Located at the junction of Finlayson Green and the new Marina Bay CBD, the subject property is near the integrated resort – Marina Bay Sands and it has immediate access to several major expressways. The immediate locality comprises mainly commercial buildings including One Raffles Quay, Marina Bay Financial Centre, Ocean Financial Centre and Republic Plaza.
Colliers International is the sole marketing agent for the North Asia region, while Jones Lang LaSalle is the agent for Southeast Asia market. The EOI exercise, for both enbloc and strata floor(s), will commence on November 24, 2010 and close on January 12, 2011.
Source: Colliers International
