mr funny
11-10-06, 08:15
Singapore Companies
Published October 11, 2006
Lippo reaps double what it paid for flagship
Group paid $151m 2 years ago for 78 Shenton Way, sells it now for $290m
By KALPANA RASHIWALA
THE Riady family's Lippo Group is selling its flagship Singapore office building at 78 Shenton Way for about $290 million, or almost double the $151 million it paid for the building slightly over two years ago, sources say.
The buyer is a property fund, said to be linked to Australia's Macquarie Bank.
Lippo renamed the building Lippo Centre, after it bought a substantial interest in the property in August 2004. But market watchers expect the group to move its Singapore headquarters soon to OUB Centre, which boasts the more prestigious address of 1 Raffles Place.
Earlier this year, a Lippo-Ananda Krishnan consortium took control of Overseas Union Enterprise and other entities, giving it a majority stake in OUB Centre.
Having an office at this location will place the Ria dys and Lippo closer to other big corporate tycoons in Singapore - like Wee Cho Yaw at UOB Plaza and Kwek Leng Beng at Republic Plaza.
The current Lippo Centre at 78 Shenton Way which has just been sold is on a site with a remaining lease of about 76 years and which has about 298,000 sq ft of net lettable space. Lippo's purchase price of $151 million in August 2004 reflected about $505 psf of net lettable area.
Lippo is proving to be a savvy investor in the Singapore property market. In March this year, Lippo's Singapore-listed unit Auric Pacific bought One Phillip Street, a 16-storey office block, from Kewalram group for $37.6 million - or about half the $76.8 million price at which Lippo sold the property to Kewalram in early 1996 near the market peak.
Published October 11, 2006
Lippo reaps double what it paid for flagship
Group paid $151m 2 years ago for 78 Shenton Way, sells it now for $290m
By KALPANA RASHIWALA
THE Riady family's Lippo Group is selling its flagship Singapore office building at 78 Shenton Way for about $290 million, or almost double the $151 million it paid for the building slightly over two years ago, sources say.
The buyer is a property fund, said to be linked to Australia's Macquarie Bank.
Lippo renamed the building Lippo Centre, after it bought a substantial interest in the property in August 2004. But market watchers expect the group to move its Singapore headquarters soon to OUB Centre, which boasts the more prestigious address of 1 Raffles Place.
Earlier this year, a Lippo-Ananda Krishnan consortium took control of Overseas Union Enterprise and other entities, giving it a majority stake in OUB Centre.
Having an office at this location will place the Ria dys and Lippo closer to other big corporate tycoons in Singapore - like Wee Cho Yaw at UOB Plaza and Kwek Leng Beng at Republic Plaza.
The current Lippo Centre at 78 Shenton Way which has just been sold is on a site with a remaining lease of about 76 years and which has about 298,000 sq ft of net lettable space. Lippo's purchase price of $151 million in August 2004 reflected about $505 psf of net lettable area.
Lippo is proving to be a savvy investor in the Singapore property market. In March this year, Lippo's Singapore-listed unit Auric Pacific bought One Phillip Street, a 16-storey office block, from Kewalram group for $37.6 million - or about half the $76.8 million price at which Lippo sold the property to Kewalram in early 1996 near the market peak.