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Following the sale of two adjacent 99-year leasehold office towers at 1 and 3 Philip Street, a North Asian investor is in the process of acquiring Robinson Centre for around S$2,300 psf, which will bring the lump-sum deal quantum to approximately S$300 million.
According to a report by The Business Times, the 20-storey office tower is being sold by a subsidiary of Alpha Investment Partners, which acquired the building for S$145 million in 2006.
With a large entrance lobby, Robinson Centre is situated on a site with a remaining lease term period of 85 years. It has a total net lettable area (NLA) of 132,388 sq ft.
The report said CBRE marketed the property through an Expression of Interest (EOI).
Meanwhile, several industry players said office investment transactions in the country are poised for a rebound after a quieter third quarter.
In a recent announcement, K-Reit Asia proposed to acquire an 87.5 percent stake in the 43-storey Ocean Financial Centre from parent company Keppel Land. The transaction values the asset at $2,600 psf, inclusive of income support. The prime Grade A office development, which was completed earlier this year, has a total NLA of 885,000 sq ft.
The report said that while this is a related-party transaction, many believe that property funds in general, particularly large foreign companies that were active in acquiring Singapore office space between 2005 and 2008, are now less active and have been replaced by high net worth investors from Singapore and other parts of Asia, as well as insurance companies and firms that may not be engaged in real estate.
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