reporter2
05-08-15, 13:47
http://www.businesstimes.com.sg/real-estate/137-cecil-street-being-sold-to-shanghai-buyer
137 Cecil Street being sold to Shanghai buyer
Pricing expected to be above S$200m; buyer had earlier eyed 158 Cecil Street, 112 Robinson Rd
By Kalpana Rashiwala
[email protected]@KalpanaBT
Aug 1, 2015
IN what is likely to be the second transaction of an office block in the past six weeks, a sale of 137 Cecil Street is being stitched, said sources.
The transaction is said to be through the sale of shares in the company that owns the freehold building. Pricing details are not clear, but seller Cheong Sim Lam was understood to have asked for S$220 million.
Talk in the market is that about a month ago, the price being negotiated was around S$210-215 million. The transaction may involve some structuring, for instance, a rental guarantee.
The buyer is tipped to be a Chinese businessman with the family name Zhou from Shanghai and who may want to establish a presence here. He had earlier looked at 158 Cecil Street, then 112 Robinson Road before turning his attention to 137 Cecil Street.
Mr Cheong has done some additions and alterations work on the property, formerly known as Aviva Building, and is now looking for tenants. It has a net lettable area of 67,550 sq ft, with typical floor plates of about 4,800-5,700 sq ft.
Word on the street is that a few tenants have been secured. Urban Redevelopment Authority has granted written permission in July 2015 for two units on the first level to be used as restaurants. In the same month, it granted temporary permission to use the third level as function rooms.
In June last year, Mr Cheong sold the next-door Cecil House, at 139 Cecil Street, to a joint venture between Vibrant Group and DB2 Group. That transaction valued the 11-storey office block, with a balance lease term of about 66 years at the time, at S$110 million.
Based on earlier articles, Mr Cheong gained control of the two adjacent buildings from Yi Kai Group and Fission Group shortly after the duo teamed up to acquire the two properties in July 2009 for S$100.8 million. They paid S$35.8 million for Cecil House and S$65 million for the former Aviva Building.
Market watchers could not ascertain the price Mr Cheong paid Yi Kai and Fission since that transaction was through a sale of shares. In June 2010, when Urban Redevelopment Authority granted provisional permission to redevelop the two properties into a new residential project with 227 apartments, Mr Cheong's name was already listed as the sole shareholder of the company that was granted approval.
However, Mr Cheong never proceeded with the redevelopment project.
He is a member of the family that developed International Plaza.
The sale of 137 Cecil Street comes soon after the S$240 million purchase of 158 Cecil Street in late June. Low-profile investor Denis Jen, who owns shopping malls in Australia, picked up the 14-storey building from a fund managed by Alpha Investment Partners, the fund management arm of Keppel Land.
The price worked out to about S$2,100 psf based on the property's net lettable area of around 115,000 sq ft. 158 Cecil Street is on a site with a balance lease term of around 65 years.
Formerly known as The Spazio and Dapenso Building, the property underwent a major revamp several years ago.
137 Cecil Street being sold to Shanghai buyer
Pricing expected to be above S$200m; buyer had earlier eyed 158 Cecil Street, 112 Robinson Rd
By Kalpana Rashiwala
[email protected]@KalpanaBT
Aug 1, 2015
IN what is likely to be the second transaction of an office block in the past six weeks, a sale of 137 Cecil Street is being stitched, said sources.
The transaction is said to be through the sale of shares in the company that owns the freehold building. Pricing details are not clear, but seller Cheong Sim Lam was understood to have asked for S$220 million.
Talk in the market is that about a month ago, the price being negotiated was around S$210-215 million. The transaction may involve some structuring, for instance, a rental guarantee.
The buyer is tipped to be a Chinese businessman with the family name Zhou from Shanghai and who may want to establish a presence here. He had earlier looked at 158 Cecil Street, then 112 Robinson Road before turning his attention to 137 Cecil Street.
Mr Cheong has done some additions and alterations work on the property, formerly known as Aviva Building, and is now looking for tenants. It has a net lettable area of 67,550 sq ft, with typical floor plates of about 4,800-5,700 sq ft.
Word on the street is that a few tenants have been secured. Urban Redevelopment Authority has granted written permission in July 2015 for two units on the first level to be used as restaurants. In the same month, it granted temporary permission to use the third level as function rooms.
In June last year, Mr Cheong sold the next-door Cecil House, at 139 Cecil Street, to a joint venture between Vibrant Group and DB2 Group. That transaction valued the 11-storey office block, with a balance lease term of about 66 years at the time, at S$110 million.
Based on earlier articles, Mr Cheong gained control of the two adjacent buildings from Yi Kai Group and Fission Group shortly after the duo teamed up to acquire the two properties in July 2009 for S$100.8 million. They paid S$35.8 million for Cecil House and S$65 million for the former Aviva Building.
Market watchers could not ascertain the price Mr Cheong paid Yi Kai and Fission since that transaction was through a sale of shares. In June 2010, when Urban Redevelopment Authority granted provisional permission to redevelop the two properties into a new residential project with 227 apartments, Mr Cheong's name was already listed as the sole shareholder of the company that was granted approval.
However, Mr Cheong never proceeded with the redevelopment project.
He is a member of the family that developed International Plaza.
The sale of 137 Cecil Street comes soon after the S$240 million purchase of 158 Cecil Street in late June. Low-profile investor Denis Jen, who owns shopping malls in Australia, picked up the 14-storey building from a fund managed by Alpha Investment Partners, the fund management arm of Keppel Land.
The price worked out to about S$2,100 psf based on the property's net lettable area of around 115,000 sq ft. 158 Cecil Street is on a site with a balance lease term of around 65 years.
Formerly known as The Spazio and Dapenso Building, the property underwent a major revamp several years ago.