Sunday 01 Oct 2023
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The entire 14th floor of Samsung Hub (below) was put up for sale by expression of interest. Samsung Hub is a 30-storey, Grade-A office building on Church Street, and was completed in 2005. The most recent transaction in the 999-year leasehold office tower in the heart of the CBD was that of a 3,875 sq ft unit on the 13th floor that changed hands for $11.625 million, or $3,000 psf, in December, according to a caveat lodged with URA Realis.

The entire 14th floor has a strata area of 13,110 sq ft and has been sub-divided into four individual strata titles. The floor is fully leased to an international law firm. Based on the guide price of $43.3 million (or $3,300 psf) for the entire floor, the marketing agent CBRE estimates gross rental yield at 3% a year.

Another popular strata-titled Grade-A office development is Suntec City. The most recent transaction was that of a 3,746 sq ft unit on the 15th floor of Suntec Tower 2 that changed hands for $10.3 million ($2,750 psf), according to a caveat lodged with URA Realis in January. Suntec City office towers are 99-year leasehold.

“The long tenure, combined with the high building quality, makes Samsung Hub an ideal investment opportunity for investors who wish to plant a seed and let it grow,” says Jeremy Lake, executive director of investment properties for CBRE. The buyer will enjoy a steady cash flow from a single blue-chip tenant, and has the flexibility of selling either the whole floor or four strata titles. The strata office market has been very active for the last 18 months, according to Lake. He expects this trend to continue throughout the year because of strong market fundamentals. The expression of interest will close on March 28 at 4pm.

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