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Market watchers estimate the price to be around $340 million.
A private fund managed by ARA Asset Management Limited has acquired Robinson Centre, a 20-storey office building located at 61 Robinson Road, for an undisclosed sum.
Previous reports, however, showed that market watchers estimate the price to be around $340 million.
With a net leasable area of more than 130,000 sq ft, Robinson Centre is the final en bloc office asset to be transacted in 2019, after an active commercial investment sales market which witnessed over $7 billion in commercial investments change hands, said Sakal Real Estate Partners, which managed the transaction.
“The office market remains a favourite sector among institutional investors. Robust rental growth is expected in the near to midterm, supported by strong demand and limited new supply,” said Sakal managing director Steven Ming.
“Tenants’ displacement from the potential withdrawal of 15-year leasehold transitional office space that had been tendered out across 2007 to 2011 could fuel rental rises too.”
He was referring to the seven office building sites which the government sold to reduce a crunch in office space. The sites will likely be taken off the market from 2022 to 2026, reported The Straits Times.
And given Singapore’s political and socio-economic stability as well as market transparency and clear rule of law, Sakal expects investor interest from private wealth to increase on the back of the growing uncertainty within the region, particularly in Hong Kong.
“If uncertainties in Hong Kong persist, we believe that these preliminary interests will materialise into transactions over the course of the new year,” said Ming.
“Beneficiary sectors could be luxury residential, conservation commercial shophouses, strata offices and smaller to mid-sized en bloc office buildings.”
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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