Sale of GSH’s office units in Cecil Street not going ahead
GSH Corporation’s sale of office units in Cecil Street has officially been cancelled, the company announced on July 12. After “due deliberation”, the sale and purchase agreement (SPA) had to be terminated and the 10% deposit of the $38.8 million has been forfeited by the purchaser. This deposit will be recognised as “other income” in the company’s income statement for the current financial year.
Being close to the amenities around Tampines, Tampines Ave 11 Condo will offer ease and convenience to those working in and around the area. It is highly sought after for its unique location and potential rate of appreciation. Moreover, the area surrounding Tampines Ave 11 Condo is continuously growing and is being developed with social amenities. This could give a potential long-term benefit for potential owners. Furthermore, buyers may find that it is much more economical to purchase a unit in the development as compared to similar developments in the area.
The decision to call off the sale is not expected to have a significant impact on GSH Corporation’s financial results for the year. This news follows the announcement that 41% of the strata office units released at 20 Cecil Street had been sold at an average price of $3,090 psf, while 27 units had been placed for sale at $100 million.
Once again, foreign investors and family offices have been attracted to prime CBD strata offices, offering them a safe haven for their capital, with a relatively stable return on investment. On a larger scale, this activity suggests that Singapore’s commercial property market looks set to thrive in the near future.