The Arcade, a 20-storey office and retail building, in Singapore’s Raffle Place has been placed on the market for S$780m (US$572.5m).
The property, located at 11 Collyer Quay in District 1, sits on a 2,035 sq.m. site, translating to an estimated land rate of S$2,833 per sq.ft. per plot ratio, says broker Colliers.
The property is situated in the heart of the city’s commercial district and near the Ocean Financial Centre, Republic Plaza, One Raffles Place and OUE Bayfront buildings, which are home to financial institutions and large corporations.
“The Arcade has a fantastic location in the heart of the CBD,” said Moeez Hatim Nakhoda, chairman of The Arcade Collective Sale Committee.
“It is highly visible and attracts heavy pedestrian traffic. Unfortunately, the building is ageing and fallen behind the times. As Raffles Place continues to evolve and surrounding buildings undergo revamp, the owners feel that it is time that The Arcade gets a complete makeover as well.”
The site is zoned for commercial purposes with a gross plot ratio of 15 and could potentially be developed into an integrated development, including a hotel, residential units, office and retail space.
The asset has dual frontage onto Raffles Green, which is a popular spot for executives and professionals.
“We expect investor interest in Singapore commercial real estate to remain robust, owing to the country’s position as a global financial hub, its stable political environment, and pro-business policies,” said Tang Wei Leng (邓慧玲), managing director at Colliers.
“Within Raffles Place, there are probably no other redevelopment opportunities and we believe The Arcade site, with a 999-year land tenure, will be highly sought-after.”
The tender will close in early January next year.