http://www.businesstimes.com.sg/sub/...19140,00.html?

Published November 10, 2010

S'pore Pools buys its new home

Landmark 12-storey building's $139m price works out to about $1,381 psf

By KALPANA RASHIWALA


(SINGAPORE) A unit of Malaysia's IOI Properties Bhd is understood to have sold IOI Plaza, a landmark 12-storey granite office block at the corner of Middle Road and Prinsep Street, for $139 million.

The price works out to about $1,381 per square foot (psf) based on a net lettable area (NLA) of about 100,640 sq ft. The building is on a site with about 85 years' remaining lease.

The buyer is said to be Singapore Pools, whose headquarters are currently located a stone's throw away at PoMo at 1 Selegie Road. Singapore Pools' betting lounge is on the ground floor and it also occupies three floors in the office tower of PoMo. Australia's Lend Lease group has a stake in PoMo, which was formerly known as Paradiz Centre.

Singapore Pools, which was set up in 1968, is the island's only legal lottery and sports betting operator. BT understands the group has been on the lookout for its own premises for some time and that it would be ideal for it to move its HQ to the new premises at Middle Road, especially given that there are more than 100 car park lots at IOI Plaza.

IOI Plaza's ground-floor units are vacant and leasing activity in the building has ceased for over a month, suggesting an imminent arrival of new occupiers, say market watchers.

According to a media report in 1996, IOI unit Future Link Properties developed the building at a total cost of about $100 million, inclusive of about $52.2 million or $444.18 per square foot per plot ratio paid for the 99-year leasehold plot which it won at a state tender that closed in January 1996.

The 27,992.60 sq ft plot was one of the first 'white' sites to be sold by Urban Redevelopment Authority. Owners of such sites can make changes of use during the plot's 99-year leasehold tenure without paying a differential premium. The plot was sold with a 4.2 plot ratio (ratio of maximum potential gross floor area to land area). The plot's zoning and plot ratio remain unchanged in the current Master Plan 2008.

Future Link Properties is majority owned by IOI Properties; its other shareholders include a low-profile Lee family in Singapore which developed the former South Marina Food and Recreation Centre, which has since been pulled down.

IOI Plaza is beside Prime Centre, which was also transacted recently. Singapore's Hong Leong Group sold the 16-storey freehold building to ERC Holdings for $103 million or $1,415 psf based on NLA of about 72,800 sq ft.

ERC is said to be planning to renovate the office block for use as an educational hub and hotel. The group's ERC Institute runs tourism and hospitality courses among its academic programmes.