Sale of Paya Lebar Square office units to start in Dec

Business Times: Thu, Nov 10
(SINGAPORE) A consortium comprising Low Keng Huat, Guthrie and Sun Venture group plans to begin selling next month strata office units in its $900 million office and retail development, Paya Lebar Square.  The 13-storey development, which will be b…

(SINGAPORE) A consortium comprising Low Keng Huat, Guthrie and Sun Venture group plans to begin selling next month strata office units in its $900 million office and retail development, Paya Lebar Square.

The 13-storey development, which will be built next to Paya Lebar MRT Station on the East-West Line, is expected to be ready by mid-2014.

The office component will comprise 550 strata units, about half of which will be about 480 square feet each. Indicative prices will range from $1,650 to $2,000 per square foot.

In absolute terms, the cheapest will be $800,000 for a 480 sq ft office on the fourth level. Occupiers or investors may buy contiguous units to combine them into larger offices.

There are also larger units such as 800 sq ft and 1,500 sq ft. If a party buys up all the office units on a single floor, it would add up to 43,000 sq ft.

In all, there will be about 430,000 sq ft of offices – all of which are for strata sale – and a retail podium with about 95,000 sq ft net lettable area.

The retail podium will stretch from Basement 1 to Level 2. Carpark lots are on levels 2 and 3. The offices will rise from levels 4 to 13.

The developer is weighing several options for the retail podium – including selling it to a single buyer, disposing of individual strata units, or retaining the mall and leasing it out.

The podium is designed to accommodate a supermarket, food court, banking hall, and food and beverage outlets. Including the food court, up to half of the total retail net lettable area will be for F&B.

Operators in the supermarket, food court and restaurant trades are among those that have indicated interest in leasing and buying space in the mall.

Low Keng Huat, Guthrie and Sun Venture group hold 80, 10 and 10 per cent respectively in Paya Lebar Development Pte Ltd, the joint venture vehicle that is developing Paya Lebar Square.

The development will be integrated with the Paya Lebar MRT Interchange Station. Level 1 will be linked through a sheltered walkway to the East-West Line station while Basement 1 will be linked to the Circle Line Station.

Paya Lebar Square has been designed by DP Architects. The design will aim for an eco-friendly building qualifying for Greenmark Gold Plus certification or better.

The development will feature a central landscaped roof terrace on the fourth storey, which will tier down to another landscaped roof terrace at the second storey.

A high-volume trellis structure covering the second-storey roof terrace will create a grand entrance for the retail podium

Guthrie will oversee the project management and marketing of Paya Lebar Square. For the upcoming release of strata office units, Paya Lebar Development will do the marketing jointly with two agents, SLP International and Black Diamond.

Guthrie and Sun Venture have a separate 50:50 joint venture that picked up 163 units at The Adelphi near City Hall MRT Station in January this year.

The 86 office and 77 retail units held by the tie-up – Guthrie-SV Pte Ltd – together represent 55.13 per cent of the 999-year leasehold building’s total share value.

Since March, selected units have been put up for sale in phases. So far, 39 office units have been sold at an average $1,935 psf, with the highest being $2,349 psf for a unit on Level 9. Guthrie-SV has also found buyers for eight retail units (on levels 1 to 3) at an average price of $2,856 psf, with Level 1 units achieving $3,400-4,039 psf.

The Attorney-General Chambers has a lease for 52 units totalling 75,541 sq ft at The Adelphi from Guthrie-SV, of which 10 units have been sold with options waiting to be exercised for two more units. Leases on the space occupied by AGC for the entire 52 units will expire within one to one-and-a-half years. AGC will move to new premises at Upper Pickering Street next year.
Source: Business Times © Singapore Press Holdings Ltd.

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