mr funny
23-06-11, 12:22
http://www.straitstimes.com/Money/Story/STIStory_682524.html
Jun 22, 2011
Robinson Road building up for sale at $678m
Its recent sales history reflects movements in the local office market
By Esther Teo, Property Reporter
THE former Singapore Airlines (SIA) building at Robinson Road has been put up for sale with a guide price of about $678 million.
The 35-storey block at 77 Robinson Road in the central business district (CBD) sits on 32,435 sq ft, and has a total net lettable area of about 295,000 sq ft. There are about 82 years left on the lease.
Its recent sales history reflects the movements in the local office building market.
SIA sold the block in June 2006 for $344 million, or about $1,165 psf of net lettable area, to a CLSA Capital Partners- linked fund, which in turn sold it 10 months later for $526 million, or $1,783 psf, to its current owner, German fund manager SEB.
Now, SEB is hoping to get $678 million, or about $2,300 psf of net lettable area, for the building, said Ms Tang Wei Leng, executive director of investment services at marketing agent Colliers.
This is in line with the most recent office sales transaction involving Capital Square at $889 million - which also had a unit price of $2,300 psf, she said.
Colliers said the building, which has a gross floor area of 380,999 sq ft, is 92 per cent leased to tenants including Adidas, Rabobank Group and Royal & Sun Alliance Insurance.
Ms Tang said the office market is expected to remain buoyant, with strong demand from both tenants and investors.
'With Grade A office rents currently 45.7 per cent below the previous peak in the first quarter of 2008, it is predicted that rents for the whole of this year will continue to enjoy an expansionary mode, supporting a 15 per cent to 20 per cent growth,' she added.
The highest price achieved for a CBD office building was $3,125 psf, paid by Commerz Real for 71 Robinson Road in April 2008.
Ms Tang said she is confident of keen interest from both local and foreign institutional investors. Colliers is inviting expressions of interest from developers.
Net yields for office investment sales in the CBD hovered between 2.5 per cent and 4 per cent from January to May and were 'encouraging' to such investors, she said.
The building's 180 carpark spaces - which gives it one of the highest ratios of parking spaces per square foot leased in CBD office buildings - is also a key draw for developers and tenants, considering the area's parking crunch, Colliers added.
Besides 77 Robinson Road, SEB also has a 55 per cent stake in 79 Anson Road, 12 floors of Springleaf Tower, a 60 per cent stake in the consortium that owns Chinatown Point mall, and Starhub Green, an Ubi Avenue industrial building.
[email protected]
Jun 22, 2011
Robinson Road building up for sale at $678m
Its recent sales history reflects movements in the local office market
By Esther Teo, Property Reporter
THE former Singapore Airlines (SIA) building at Robinson Road has been put up for sale with a guide price of about $678 million.
The 35-storey block at 77 Robinson Road in the central business district (CBD) sits on 32,435 sq ft, and has a total net lettable area of about 295,000 sq ft. There are about 82 years left on the lease.
Its recent sales history reflects the movements in the local office building market.
SIA sold the block in June 2006 for $344 million, or about $1,165 psf of net lettable area, to a CLSA Capital Partners- linked fund, which in turn sold it 10 months later for $526 million, or $1,783 psf, to its current owner, German fund manager SEB.
Now, SEB is hoping to get $678 million, or about $2,300 psf of net lettable area, for the building, said Ms Tang Wei Leng, executive director of investment services at marketing agent Colliers.
This is in line with the most recent office sales transaction involving Capital Square at $889 million - which also had a unit price of $2,300 psf, she said.
Colliers said the building, which has a gross floor area of 380,999 sq ft, is 92 per cent leased to tenants including Adidas, Rabobank Group and Royal & Sun Alliance Insurance.
Ms Tang said the office market is expected to remain buoyant, with strong demand from both tenants and investors.
'With Grade A office rents currently 45.7 per cent below the previous peak in the first quarter of 2008, it is predicted that rents for the whole of this year will continue to enjoy an expansionary mode, supporting a 15 per cent to 20 per cent growth,' she added.
The highest price achieved for a CBD office building was $3,125 psf, paid by Commerz Real for 71 Robinson Road in April 2008.
Ms Tang said she is confident of keen interest from both local and foreign institutional investors. Colliers is inviting expressions of interest from developers.
Net yields for office investment sales in the CBD hovered between 2.5 per cent and 4 per cent from January to May and were 'encouraging' to such investors, she said.
The building's 180 carpark spaces - which gives it one of the highest ratios of parking spaces per square foot leased in CBD office buildings - is also a key draw for developers and tenants, considering the area's parking crunch, Colliers added.
Besides 77 Robinson Road, SEB also has a 55 per cent stake in 79 Anson Road, 12 floors of Springleaf Tower, a 60 per cent stake in the consortium that owns Chinatown Point mall, and Starhub Green, an Ubi Avenue industrial building.
[email protected]