CPF Board's space at 79 Anson Rd up for sale
The Central Provident Fund Board has put its space at the
freehold 79 Anson Road up for sale. The price expected to be achieved for the
mostly office space is at least $2,000 per square foot on strata area of
100,007 square feet, or $200 million.
The net lettable area of CPF Board's space is 88,636 sq ft
based on the current leasing configuration.
79 Anson Road, about 250 metres from Tanjong Pagar MRT
Station, is a 23-storey building that received Temporary Occupation Permit in
1992.
The space being offered by the CPF Board comprises eight
levels of office space (spanning levels 16-23) and a ground-floor retail unit
facing Anson Road.
The space comprises 17 strata titles, with most floors having two separate strata titles of about 4,746 sq ft and 6,339 sq ft each. The board's space equates to 43.81 per cent share value for 79 Anson Road.
The space comprises 17 strata titles, with most floors having two separate strata titles of about 4,746 sq ft and 6,339 sq ft each. The board's space equates to 43.81 per cent share value for 79 Anson Road.
The rest - held by German fund manager SEB - comprises
strata units on levels 1 and 5-15 with a total of 22 strata titles representing
a total strata area of 117,423 sq ft.
79 Anson Road's existing gross floor area (GFA) of 289,185
sq ft slightly exceeds the 275,369 sq ft based on the 8.4 plot ratio designated
for the 32,782 sq ft site under Master Plan 2008. The site is zoned for
commercial use and can be built up to 35 storeys.
SEB is also understood to be open to selling its space in
the building, say market sources.
Assuming a new development on the site is allowed to retain
the existing 289,185 sq ft GFA, the $200 million price expectation for CPF
Board's space in the building, depending on the price the buyer pays for the
lower floors owned by SEB, could equate to something close to a unit land price
of $1,450 psf per plot ratio.
This would be in sync with the $1,420 psf ppr for the
transaction of the freehold Tower 15 at Cantonment Road in May.
Even if SEB were to sell its space to the buyer of the CPF
Board's space in 79 Anson Road, the property cannot be demolished immediately,
as an anchor tenant that occupies around 75 per cent of CPF Board's space
recently renewed its lease till early 2016.
The board's space is currently fully leased with a passing
rent averaging $5.84 per square foot per month - translating to a 3 per cent
net yield. This should help fund the interest expense on borrowing for the
potential buyer.
Some potential buyers may also be keen on acquiring CPF
Board's space as an investment property yielding a steady flow of rental
income. The space may also interest organisations looking for a flagship or HQ
property.
The site could also attract buyers keen on further strata
titling the space into smaller units for sale. New strata offices in the
vicinity have reached $2,800 psf to $3,100 psf.
Recent successful strata office title launches in the
vicinity include PS 100, Eon Shenton, Robinson Square and Oxley Tower.
A big draw of 79 Anson Road would be its generous carpark
provision with 145 lots on levels 2-4.
Source: Business Times – 18 September 2012