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Bugis Cube up for collective sale at $230m reserve price

08 Oct, 2019

Bugis Cube has been put up for collective sale via a public tender exercise at a reserve price of $230 million, marketing agent Cushman & Wakefield said yesterday.

The six-storey commercial building at 470 North Bridge Road has 119 strata-titled retail shops, including food and beverage outlets, beauty, hair and nail salons, and a family karaoke lounge, as well as a basement carpark.

The reserve price works out to a land rate of about $3,452 per sqft per plot ratio, based on the verified gross floor area of 66,614 sqft, or 6,188.67 sqm, and a plot ratio of 5.735.

The 999-year leasehold site has a land area of 1,079.1 sqm, or 11,615 sqft. It is zoned "commercial" with a plot ratio of 4.2 and a maximum height of six storeys, according to the Urban Redevelopment Authority's Master Plan 2014.

Owners holding not less than 80 % by share value and strata area have agreed to the collective sale, the agent said. The tender exercise closes on Nov 14 at 3pm.

Ms Annalyn Ooi, Cushman & Wakefield's associate director of capital markets, said: "As the sale is with vacant possession, the prospective buyer will have the opportunity to add value to the building through asset enhancement initiatives, such as by introducing co-working space concepts, speciality services and clinics.

"The buyer could also convert it into a boutique office building with its own naming rights." The property is opposite Bugis Junction and adjacent to Liang Seah Street, a popular food and beverage street with steamboat restaurants, bars and dessert cafes.

Mr Shaun Poh, Cushman & Wakefield's executive director of capital markets, noted that the recent sales of Bugis Junction Towers and Duo, have definitely added to the growing interest in the locality.

Last week, Keppel Reit agreed to sell its strata ownership of Bugis Junction Towers to Village Prop for $547.5 million - $388 million more than what it paid for the property in 2006.

As for Duo, M+S confirmed in July that it is selling the office and retail areas of the mixed-use development for $1.575 billion.

Bugis Cube sits within the eclectic Bras Basah and Bugis neighbourhood, which houses upcoming projects such as Guoco Midtown.

Tenders for future residential developments in Tan Quee Lan Street and Middle Road were also recently awarded under the Government Land Sales programme.

Bugis Cube is about 250m from City Hall MRT and Bugis MRT stations, and has easy access from other parts of Singapore via the East Coast Parkway and Marina Coastal Expressway.

Formerly known as North Bridge Commercial Complex, the property was acquired in 2009 for $46 million by Griffin Real Estate Investment Holdings, which was set up by former Sakae Holdings director Andy Ong. Griffin then sold some of the units to individual buyers for $142 million in total, before the building was refurbished and renamed Bugis Cube.

Yesterday, Perennial Real Estate said its joint venture is looking to start a claim for conspiracy against Ong and Griffin, in connection with the acquisition of another property.

Adapted From The Straits Times, Oct 8 2019