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77 Robinson Road, a prime office building at Singapore’s central business district, has been put up for sale again, and this time with a guide price of S$575 million, marketing agent CBRE announced in a press release on Wednesday (22 June).
This sale comes less than a year after the last attempt to sell the office building in September 2015. The property was up for sale at a guide price of S$650 million previously.
The current rate translates to a per-square-foot price of S$1,960 based on the net lettable area of approximately 293,269 sq ft. According to CBRE, the potential net yield for this property is at 3.5 percent in one year.
The 77-storey office property also offers three ground floor retail units and comes with a 99-year lease tenure from 1994.
Commenting on the sale, CBRE executive director for Investment Properties, Jeremy Lake said: “It is very timely to bring 77 Robinson Road to the market now because sentiment towards the office market has improved for two reasons; one, there has been a pickup in leasing activity in Marina One and Guoco Tower and the leasing market is getting traction after a standoff between landlords and tenants. And two, the recent sales of Asia Square Tower 1 (S$3.38 billion), Straits Trading Building ($560 million) and Capitagreen (60 per cent sold at S$960 million) have stirred the market and made investors sit up and relook at their investment strategy.
“Inevitably some investors will be bringing forward their acquisition time frame for the Singapore office market,” he added.
CBRE expects interest to come from various industries including “insurance companies buying for their own use and investment, private equity real estate funds looking to upgrade and reposition the property either for subsequent resale or to retain for investment.” It also noted the possibility of attracting Hong Kong-based private investors looking to enter the Singapore market.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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