The Prospex, a nine-storey retail and office building next to Bugis+, is back on the market with an indicative guide price “in excess of S$70 million” (US$49.3 million).
When the building was previously put up for sale on an en-bloc basis through an expression of interest (EOI) exercise that closed in October 2015, the asking price was $80 million, reports AsiaOne. However, this time around the building has tenants.
A $70 million price tag translates to $2081 a sqft based on the total net lettable area (NLA) of 33,631 sqft (3124 sqm). The Prospex is on a site with a 99-year leasehold tenure that started on December 1, 1974, which leaves a balance term of about 57 years.
At the Middle Road/Victoria Street intersection, close to Bugis MRT Station, The Prospex comprises a two-level retail podium (with 4040 sqft of NLA) with seven levels of offices above. The building is about 85 per cent leased.
“On a fully leased and stabilised basis, a price of $70 million would work out to about 3.5 per cent net yield,” says Anthony Barr, regional director of capital markets at JLL, which is running the EOI exercise for The Prospex, closing on March 21.
Prospex is being offered by Hong Kong and Singapore-based property fund manager Pamfleet, which bought the former Bright Chambers on the site at $45 million in 2013 and made major additions and alterations.
Tenants in the building include the second Singapore branch of Shanghai-based Mellower Coffee, which occupies the entire two-level retail podium, digital media company 701 Search and American nutrition company Zrii.
As the property sits on land fully zoned for commercial use, foreigners may buy without regulatory approval.