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Chevron House, a 33-storey tower at Raffles Place has been sold to a fund managed by Germany’s Deka Immobilien for $547 million, or about $2,083 psf based on the property’s existing 262,650 sq ft net lettable area (NLA).
Formerly known as Caltex House, Chevron House has been sold by global investment firm Goldman Sachs after it acquired the property in 2007 for $730 million, or about $2,780 psf.
The property is the second Singapore office tower to be sold by the investment firm after it sold DBS Towers One and Two to Overseas Union Enterprise last month for approximately $870.5 million.
The office market in Singapore has recorded a steady rental recovery after it declined in the wake of the financial crisis.
“The fundamentals are attractive. Investors have realised this over the past three months and investor appetite has increased significantly. Parties looking to invest include Reits, other property funds and private investors. Appetites range from $100 million to $500 million-plus,” a market observer said.
Deka Immobilien, which is acquiring the property, is a unit of DekaBank in Germany. The transaction marks the company’s first major property acquisition in the country.
The occupancy rate at Chevron House is currently 98 percent with major tenants including Chevron and Visa. The property comprises a 29-storey office building, four-store retail podium and three basement levels.