See who bought San Centre for a cool $113 million

Sold en bloc by Jones Lang LaSalle.

CEL Property Investment Pte Ltd (CEL), a subsidiary of Mainboard-listed Chip Eng Seng Corporation Ltd has successfully purchased San Centre, a 12-storey office building located along Chin Swee Road, said Jones Lang LaSalle in a release.

This marks the first commercial collective sale site sold for the year in Singapore.

The subject office building comprises 107 strata-titled office units and 80 carpark lots, built in the 1970s.

“San Centre has a land area of 28,719 sq ft, and is zoned for Commercial use under the 2008 Master Plan. In response to an Outline Planning Permission application, the planning authorities have advised that they are prepared to support the redevelopment of the site into a 20-storey hotel development or a mixed residential and commercial development with at least 60% of the space set aside for commercial use,” says Mr Karamjit Singh, Head of Investments & Residential, Jones Lang LaSalle.

“As the site of San Centre enjoys the flexibility of various redevelopment options, its tender attracted good interest from investors and developers.”

“In a location flanked by the Central Business District (CBD), the culturally rich Chinatown of Singapore and the vibrant Robertson Quay, a hotel redevelopment would cater to business travellers and tourists. It is also viable to retain its use as an office building, as its close proximity to the Subordinate Courts could appeal to small and medium-sized law firms as potential buyers or tenants,” says Mr Singh.

“Demand remains strong for properties with commercial or hotel redevelopment potentials. Small to medium sized residential en blocs with unique attributes, such as those zoned for landed properties, or sites close to MRT stations, will continue to be well sought after,” added Mr Singh.

Jones Lang LaSalle said that about 90% of owners have consented in writing to CEL‟s offer of $113 million, which translates to $857 psf over the existing gross floor area. The owners of San Centre will be receiving a gross sale price ranging from about $400,000 to $2.25 million.