The Prospex rear on the market, with lower price point
The Prospex, a nine-storey retail and office building future to Bugis+, is rear on the market, these times with an indicative guide price “in excess of S$70 million”.
This appears to be lower than the S$80 million asking price when the building was previously put up for sale on an en bloc basis through an expression of interest (EOI) exercise that closed in October 2015.
The big difference this time around is that the building has now been substantially let; no tenants had been signed up when the previous sale attempt was launched.
A price of S$70 million translates to S$2, 081 per square foot based on the total net lettable area (NLA) of 33, 631 square feet. The Prospex is on a site with a 99-year leasehold tenure starting Dec 1, 1974; this translates to a balance term of about 57 years.
Located at the busy corner of Middle Road and Victoria Street and just a stone’s throw from Bugis MRT Station, The Prospex consists of a two-level retail podium (with 4, 040 sq ft NLA) and seven levels of offices above (29, 591 sq ft).
The building is about 85 per cent leased. Only the top floor and some units on the seventh floor are available for lease.
On a fully leased and stabilised basis, a price of S$70 million would work out to about 3. 5 per cent net yield.
Prospex is being offered by Hong Kong and Singapore-based property fund manager Pamfleet, which bought the former Bright Chambers on the site at S$45 million in 2013 and made major additions and alteration works to the building to achieve its current modern look. The Prospex received a Temporary Occupation Permit in the first quarter of 2016.
Tenants in the building include the second Singapore branch of Shanghai-based Mellower Coffee (which occupies the entire two-level retail podium); 701 Search, a leading digital media company backed by Singapore Press Holdings; and Zrii, an international nutrition company based in Draper, Utah.
Momentum in the Singapore property investment sales market is starting to pick up with the recent transactions at GSH Plaza, Prudential Tower and TripleOne Somerset.
Strong interest for The Prospex can be expected with the likes of boutique building funds, relatives offices and high-net-worth people looking to invest within a newly overhauled income-producing assets.
The property will in addition attract owner occupiers who all are looking to acquire for their corporation headquarters with potential for own naming and signs rights. The property’s profits should cultivate organically with recovery on office community rents above the next few years and adding signage/advertising to the outstanding faade of your building.
Potential buyers may choose to acquire shares during the special intention vehicle maintain Prospex as well as do a great outright assets purchase.
Shopping 100 % control of the following asset provides each future owner flexibility to later peddle the entire building or undertake individual strata unit profits. Strata neighborhood of the establishing has been accredited.
There is great potential importance to be revealed from executing strata profits especially for the main ground-floor retail units.
Seeing that the property is situated on acreage fully zoned for professional, foreigners could buy not having regulatory credit. There is also not any additional customer’s stamp need and seller’s stamp need for these property.
Tailored from: This business Times, 18 February 2017