TripleOne Somerset, currently under $120 million cost of renovation, aims to improve retail choices, beautify work reception and common areas for offices, as well as integrating medical suites in its towers.
This prime integrated development situated in Orchard road comprises of two office towers and a retail podium next to Somerset MRT station.
The entire 15 office units in the entire seventh floor is now asking for a sale price of S$41.56 million via expression of interest. The refurbishment work for the seventh floor will expect to be finished in May.
Marketing agency, CBRE, expect this sale offer to draw lots of interest from investors, given the rare sale for this sort of property on the market. According to Straits Times, Sammi Lim, director for capital markets at CBRE, said: “There hasn’t been a launch of new strata office units and medical suites for sale in the Orchard Road precinct in over three decades.” She also mentioned typically only office units in ageing buildings are available for sale and their trading price is at premium due to scarcity.
Looking at recent figures, a 6,867 sqft work area in Tong Building was sold at $25.5 million ($3,713 psf ) last April. In last July, a 7,330 sqft office space in Orchard Towers was transacted for $12.5 million ($1,705 psf) in in July. Both buildings holding a freehold lease were built in the 70’s.
The 99-years leasehold development, TripleOne Somerset, began in Feb 1975. Its tenants pool includes lifestyle manufacturers and high-end fashion companies like Samsonite, Bottega Veneta, Gucci and Bell & Ross. Recently, real estate marketing giant, Property Guru, has also move from its Novena office to TripleOne Somerset.
“With monthly office rents at TripleOne Somerset hovering in the range of $8 to $8.50 psf, gross rental yields are close to 4 per cent, which is also attractive to investors,” Ms Lim noted.