CBD office block could go residential
ANOTHER ageing office block in the Central Business District could be turned into apartments as the inner-city takes on an increasingly residential flavour.
The latest building likely to face a makeover is the Euro-Asia Centre, a 29-storey building in Hoe Chiang Road. Property agent Colliers International has put it on sale after winning provisional permission to convert it into flats, though the new owner may prefer to retain it for purely commercial use.
The freehold block near Keppel Towers and Singapore Technologies Building sits on 49,442 sq ft of land and has a lettable area of 193,000 sq ft. The block was built around 1983 with 16 storeys, but had a 13-floor extension added in 2004 at a reported cost of $80 million.
Industry sources expect it to fetch $128 million to $132 million, or about $660-$680 psf. They said it is a forced sale as the building’s owner, property group Euro-Asia, has hit financial difficulties. Euro-Asia’s founder P. L. Kua was heavily into property from the early to mid-1990s and bought land and stakes in Seaview Hotel and ANA Hotels.
Colliers International said it obtained the outline planning permission late last year for a 35-storey residential building with ground level commercial use. Its director for investment sales, Mr Ho Eng Joo, said: ‘Inner-city living is quite the ‘in’ thing now. Sales at the Icon and The Sail@Marina Bay have done very well.’
The Icon is in Tanjong Pagar; The Sail@Marina Bay is in the New Downtown area.
Potential buyers of the Euro-Asia Centre could convert and refurbish the new extension block into apartments or redevelop the entire property for residential use, said Mr Ho.
Far East Organization started the trend to inner-city living in 2004 when it obtained provisional permission to convert Natwest Centre in McCallum Street into a residential development. Buildings such as 1 Shenton Way and Asia Chambers in McCallum Street have followed suit.
‘Developers generally expect to reap higher returns from converting an old office block to apartments…because of the recent popularity of inner-city living and the declining rentals they are likely to get from ageing office buildings,’ said Knight Frank’s research director, Mr Nicholas Mak.
The tender for the Euro-Asia Centre, which is being leased out at up to $3 per sq ft, will close at 3pm on March 22.
Gains in most global equity markets were largely behind the positive returns and they also helped offset effects of rising interest rates and oil prices.
Source : Straits Times - 14 Feb 2006
Loading ...
Post a Comment
Tell me a bit about yourself; who you are, where you're from, what information you would like to see on this site. As I continue to provide you with Singapore property happenings, your feedback will encourage me to post more frequently. Thank you.