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News Release

Singapore

Newly refurbished 9-storey commercial building prominently located at the heart of Bugis up for sale

Indicative price in excess of $70 million


​Singapore, 14 February 2017 – JLL, as the exclusive marketing agent, is inviting offers through an Expression of Interest (EOI) exercise for the purchase of The Prospex, a 9-storey newly refurbished commercial building prominently located at 108 Middle Road.

Located at the busiest intersection in Bugis, The Prospex underwent major Alterations and Additions works in 2015 to achieve its current modern and state-of-the-art look. The building was completely redesigned with brand new full glass windows, mechanical and electrical systems, lifts, building lobby and common areas. The property sits on a land area of approximately 5,263 sq ft and has a total gross floor area (GFA) of approximately 41,806 sq ft. Under the 2014 Master Plan, the site is zoned for commercial use. The property consists of a two level retail podium and seven levels of office floors. The property is close to being fully let.  Notable tenants include the global flagship store of Shanghai-based Mellower Coffee, 701 Search – a leading digital media company backed by Singapore Press Holdings (SPH), Endo Lighting Corp – a Japan-based lighting company listed on the Tokyo Stock Exchange, Create Restaurants Holdings Inc – a Japan-based holding company engaged in the operation of restaurants and Zrii - an international nutrition company based in Draper, Utah.

The property is prominently located at the intersection of Middle Road and Victoria Street and is highly visible to the vehicular and shopper traffic. It is located about 400 metres from Bugis MRT station and is readily accessible via public transportation. Located within the Central Business District (CBD), the property is easily accessible to other parts of Singapore via the Marina Coastal Expressway (MCE), Ayer Rajah Expressway (AYE) and Central Expressway (CTE). 

The property is located within the 95-hectare Bras Basah.Bugis district, a vibrant and exciting lifestyle district that has been designated by the Urban Redevelopment Authority (URA) as an Arts, Culture, Educational and Entertainment destination. Well-known establishments in the area include shopping centres such as Bugis Junction, Bugis+, Bugis Village; Hotels such as Hotel Intercontinental, Raffles Hotel and Hotel G; Office buildings such as Bugis Junction Towers and Manulife Centre; Educational Institutes such as Singapore Management University (SMU), Nanyang Academy of Fine Arts (NAFA) and Lasalle College of the Arts and Heritage buildings such as Singapore Art Museum and National Museum of Singapore.

The precinct is currently undergoing rejuvenation with the development of two mega integrated developments - namely the recently completed South Beach Development and the upcoming Duo Development. The two integrated developments will inject new life into the area via introduction of brand new retail options, offices, luxury hotels and residential apartments. A 2-hectare commercial land plot located at Beach Road has also been released under the Government Land Sales programme reserve list which demonstrates the Government’s efforts to continuously rejuvenate the area.

Anthony Barr, Regional Director, Capital Markets, JLL said: “En bloc commercial buildings of this size are seldom available for sale. The subject property’s prominent corner location extends an opportunity for either investors or owner occupiers to take full advantage of signage opportunities. Furthermore, with the continuous rejuvenation of the Bugis area, the new owner can expect to enjoy strong capital and rental upside from the spill over of commercial activities and the continuous transformation of the area in the mid to long term.” 

“With the recent transactions of GSH Plaza at $725 million ($2,900 psf), 30% stake of Prudential Tower at $206.59 million ($2,600 psf) and 70% stake of TripleOne Somerset at $854 million ($2,200 psf) at the beginning of 2017, we’re starting to see sales momentum building up in the market. We expect strong interest from investors such as boutique real estate funds, family offices and high-net-worth individuals (HNWIs) who are looking to invest in a newly refurbished income producing stabilised asset. The property will also attract owner occupiers who are looking to purchase for their corporate headquarters with potential for naming and signage rights. The property’s income should grow organically with recovery in office sector rents over the next few years and by adding signage/advertising to the prominent façade of the building. The future owner could retain and sell en bloc ownership or potentially sell down in part via strata sale.  With an exceptional ground floor presence, there is immense hidden “breakdown value” in the building, he added.

The indicative guide price for The Prospex is in excess of $70 million, which translates to about $1,674 psf on the existing GFA. 

As the property sits on land zoned for commercial use, foreigners are eligible to purchase the property. There is also no Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) imposed on the purchase of the property.  

The sale will be conducted through an EOI exercise which closes on Tuesday 21 March 2017 at 3pm.
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Note to editors:
1. A high resolution image of The Prospex is available upon request.