Commercial building at 15 Phillip Street in Raffles Place for sale at $91 mil
Its unutilised gross floor area and potential eligibility for strata sales may attract investors seeking value creation from a rare sub-$100 million Raffles Place asset.
The 999-year leasehold commercial building at 15 Phillip Street is offered at $91 million, with redevelopment potential under a plot ratio of 15.
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A 10-storey commercial building at 15 Phillip Street in Raffles Place has been put up for sale through an expression of interest (EOI) at a guide price of $91 million.
Also known as Tan Ean Keam Building, the 999-year leasehold property sits on 358.3 sq m (approximately 3,857 sq ft) site, with a coffee shop occupying the basement, first and second floors.
The eventual buyer can opt to either carry out asset enhancement works or redevelop it to “fully optimise” its unutilised gross floor area, said sole marketing agent ETC, a member of Realion Group, on Oct 23.
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Under the URA Master Plan 2025, the site is zoned for commercial use with a plot ratio of 15 and a building height control of more than 50 storeys.
The property falls outside the areas subject to URA's restrictions on the strata subdivision of commercial space. This means the commercial redevelopment project may potentially be considered for strata sale in the future, according to ETC.
Swee Shou Fern, head of investment advisory at ETC, said there is potential for building signage and naming rights, which may appeal to companies looking to establish their corporate headquarters in Raffles Place. Owner-occupiers can also have greater control over their premises and occupancy costs.
In Singapore’s office investment market, smaller commercial assets in strategic locations continue to attract interest from investors seeking a more manageable price tag, Swee added.
"Such prized assets are tightly held and there is hardly any available for sale at under $100 million," she noted.
Located in the CBD, 15 Phillip Street is surrounded by commercial developments including CapitaSpring, Republic Plaza, UOB Plaza, One Raffles Place and OCBC Centre. Other nearby buildings include Royal One Phillip, Royal Group Building and Grand Building.
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The property is within walking distance of Raffles Place MRT interchange, serving the North-South and East-West lines, as well as Telok Ayer MRT Station on the Downtown Line. It is also close to dining, retail and other amenities in the CBD.
As a commercial property, the acquisition is not subject to additional buyer's stamp duty, and there are no restrictions on foreign ownership.
The EOI exercise will close at 3pm on Nov 25.