Guthrie, Sun Venture sell 7 strata shops at The Adelphi

Posted on July 28, 2011

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(SINGAPORE) The strata commercial property market continues to buzz.

A Guthrie GTS and Sun Venture Property tie-up has sold seven strata shop units at The Adelphi near City Hall MRT Station, at prices ranging from $1,900 per square foot (psf) to $4,040 psf in the past few weeks.

The sizes of the shops are between 398 sq ft and 915 sq ft, says CB Richard Ellis (CBRE), the marketing agent for Guthrie and Sun Venture’s units in the 999-year-leasehold building.

Since mid-March, the duo have also sold 28 strata office units at The Adelphi, fetching $1,675-$2,231 psf. The top end of that price range was for a 710-sq-ft office unit on the eighth level. The average price for the office units sold works out to $1,932 psf.

In all, the 35 strata office and shop units which have been sold have a total strata area of 51,385 sq ft and have fetched a combined $105.4 million.

The buyers are a mix of owner occupiers (including law firms), existing tenants who want to buy over the units they are currently leasing as well as investors who are switching from the Singapore residential sector to the commercial property sector, where they can find higher property yields as well as more attractive financing packages from banks, said CBRE executive director (investment properties) Jeremy Lake.

‘The strata office and retail market has been fairly active. Some property investors view the market fundamentals as being better for the Singapore office and retail sectors than for the residential sector,’ he added.

Investors in shop and office units do not pay the seller’s stamp duty. In contrast, those who purchase a private residential property on or after Jan 14, 2011, and sell it within four years have to pay a seller’s stamp duty. The rates are 16, 12, 8 and 4 per cent of the sale price of the properties if they are sold in the first, second, third and fourth year of purchase respectively.

In December last year, the Guthrie-Sun Venture paid $218.1 million for property giant CapitaLand’s entire stake in The Adelphi, comprising 163 strata units totalling 178,067 sq ft and representing 55.13 per cent of the total share value in the building.

The shops are on Basement 1 to Level 4 and the office units on Levels 5 and 7-10.

Over in the financial district, Ho Bee is understood to have sold three office floors at the 999-year-leasehold Samsung Hub at Church Street in the past couple of months.

It is said to have sold the 13th and 14th floors, adding up to about 26,220 sq ft at $2,550 psf or a total of about $66.9 million. The buyer is believed to be a Hong Kong-based private property fund.

Ho Bee has also divested four strata units (ranging from 2,906 sq ft to 3,875 sq ft) carved out from the 12th floor of the 30-storey office tower to four separate buyers at $2,600 psf or slightly over $34 million for the entire floor. CBRE is understood to have brokered the transactions for all three floors.
Source: Business Times © Singapore Press Holdings Ltd.