reporter2
22-10-11, 19:23
http://www.businesstimes.com.sg/sub/premiumstory/0,4574,461671,00.html?
Published October 22, 2011
Sales of 3 CBD buildings said to be nearing deals
It is understood that One Phillip Street, Commerce Point and Robinson Centre command a total of over $500 million
By KALPANA RASHIWALA
TRANSACTIONS for three office blocks in the Central Business District are close to being stitched for a total of over $500 million, BT understands.
Property investor Asok Kumar Hiranandani is said to be leading the race to buy two adjacent 999-year leasehold office blocks in the Raffles Place area: One Phillip Street and Commerce Point (the latter is at 3 Phillip Street). The per square foot on net lettable area pricing for the two buildings is said to differ, but on a blended basis, the figure is likely to be under $2,500 psf or under $300 million, BT understands.
Word on the street is that a North Asian investor is doing due diligence on Robinson Centre. The price is understood to be close to $2,300 psf, which would bring the lump-sum deal quantum to around the $300 million level. The 20-storey office block is being sold by a unit of Alpha Investment Partners, which bought the property for $145 million in 2006. Robinson Centre is on land with a remaining lease term of about 85 years. With a net lettable area (NLA) of 132,388 sq ft, it has an impressive entrance lobby and 71 car park lots.
CB Richard Ellis marketed Robinson Centre through an expressions of interest exercise.
Jones Lang LaSalle is said to be handling the sale of One Phillip Street and Commerce Point, which are being sold by Aviva group.
One Phillip Street is a 16-storey building with 36,194 sq ft net lettable area (NLA).
Auric Pacific sold the property in February 2008 for $99.02 million or $2,736 psf on NLA to UK-based New Star International Property Fund, which was later acquired by Henderson Group, which subsequently transferred the fund to Aviva group.
City Developments sold Commerce Point in June 2008 for $180.7 million or about $2,200 psf to a unit of Aviva group. This is a 19-storey office block with 82,160 sq ft NLA.
Market watchers say that the front runner for the two Phillip Street office blocks, Asok Kumar Hiranandani, was previously looking at purchasing Robinson Point.
BT reported recently that Mr Asok Kumar and his elder brother Mr Raj Kumar are swapping assets with each other as part of a restructuring of the Royal Brothers group which they built up. Among other deals, Mr Asok Kumar is selling his half share in the Royal Brothers Building at Malacca Street, where he is currently based, to RB Capital, a real estate and hotel outfit started by Mr Raj Kumar's son Kishin.
Industry players say that office investment deals are poised for a rebound after taking a breather in the third quarter.
In a transaction announced earlier this week, K-Reit Asia said it is proposing to buy parent Keppel Land's 87.5 per cent stake in Ocean Financial Centre. The deal values the asset at $2,600 psf, inclusive of income support; analysts estimate that excluding income support, the price could be about $2,400 psf. The 43-storey prime Grade A office development, completed earlier this year, has about 885,000 sq ft net lettable area.
While this is a related-party transaction, market watchers say that generally property funds, especially big overseas names that were active buyers of office space in Singapore in the previous cycle (2005-2008), are now less active and have been replaced by the likes of high net worth investors from Singapore and Asia, cash-flush listed companies that may not be in real estate, insurance companies, and even some new funds from the region.
Published October 22, 2011
Sales of 3 CBD buildings said to be nearing deals
It is understood that One Phillip Street, Commerce Point and Robinson Centre command a total of over $500 million
By KALPANA RASHIWALA
TRANSACTIONS for three office blocks in the Central Business District are close to being stitched for a total of over $500 million, BT understands.
Property investor Asok Kumar Hiranandani is said to be leading the race to buy two adjacent 999-year leasehold office blocks in the Raffles Place area: One Phillip Street and Commerce Point (the latter is at 3 Phillip Street). The per square foot on net lettable area pricing for the two buildings is said to differ, but on a blended basis, the figure is likely to be under $2,500 psf or under $300 million, BT understands.
Word on the street is that a North Asian investor is doing due diligence on Robinson Centre. The price is understood to be close to $2,300 psf, which would bring the lump-sum deal quantum to around the $300 million level. The 20-storey office block is being sold by a unit of Alpha Investment Partners, which bought the property for $145 million in 2006. Robinson Centre is on land with a remaining lease term of about 85 years. With a net lettable area (NLA) of 132,388 sq ft, it has an impressive entrance lobby and 71 car park lots.
CB Richard Ellis marketed Robinson Centre through an expressions of interest exercise.
Jones Lang LaSalle is said to be handling the sale of One Phillip Street and Commerce Point, which are being sold by Aviva group.
One Phillip Street is a 16-storey building with 36,194 sq ft net lettable area (NLA).
Auric Pacific sold the property in February 2008 for $99.02 million or $2,736 psf on NLA to UK-based New Star International Property Fund, which was later acquired by Henderson Group, which subsequently transferred the fund to Aviva group.
City Developments sold Commerce Point in June 2008 for $180.7 million or about $2,200 psf to a unit of Aviva group. This is a 19-storey office block with 82,160 sq ft NLA.
Market watchers say that the front runner for the two Phillip Street office blocks, Asok Kumar Hiranandani, was previously looking at purchasing Robinson Point.
BT reported recently that Mr Asok Kumar and his elder brother Mr Raj Kumar are swapping assets with each other as part of a restructuring of the Royal Brothers group which they built up. Among other deals, Mr Asok Kumar is selling his half share in the Royal Brothers Building at Malacca Street, where he is currently based, to RB Capital, a real estate and hotel outfit started by Mr Raj Kumar's son Kishin.
Industry players say that office investment deals are poised for a rebound after taking a breather in the third quarter.
In a transaction announced earlier this week, K-Reit Asia said it is proposing to buy parent Keppel Land's 87.5 per cent stake in Ocean Financial Centre. The deal values the asset at $2,600 psf, inclusive of income support; analysts estimate that excluding income support, the price could be about $2,400 psf. The 43-storey prime Grade A office development, completed earlier this year, has about 885,000 sq ft net lettable area.
While this is a related-party transaction, market watchers say that generally property funds, especially big overseas names that were active buyers of office space in Singapore in the previous cycle (2005-2008), are now less active and have been replaced by the likes of high net worth investors from Singapore and Asia, cash-flush listed companies that may not be in real estate, insurance companies, and even some new funds from the region.