112 Robinson & PIL Building Sold
SINGAPORE – Data from the government’s Integrated Land Information Service (INLIS) shows that 2 commercial properties have changed hands within the city-state’s central business district (CBD) a week ago and several months ago, reported The Edge on Wednesday evening (22 December, SGT).
For instance, a caveat lodged on 14 December 2021 revealed that the 112 Robinson office building has been sold for S$269.7 million. This translates to $2,925 psf based on the property’s net leasable area (NLA) of 92,205 sq ft.
Renovated in 2003, the 14-storey commercial building contains retail space on the ground floor and office space on the upper levels. The commercial property stands on a freehold site measuring 9,794 sq ft.
Based on INLIS, the buyer is Alpha Eins (SG) Pte Ltd, a vehicle controlled by Munich-based family office AM Alpha, which has also established a regional office in Singapore. The transaction is believed to be the family office’s first direct property acquisition here, with the acquirer represented by law firm Dentons Rodyk.
The seller of 112 Robinson is Robinson Singapore Holding Pte Ltd, and its ultimate holding company is Lion Trust. Property consultancy Cushman & Wakefield (C&W) brokered the deal.
Meanwhile, INLIS has confirmed that PIL Building has been sold at the end of October 2021. In June of the same year, it was reported that TE Capital Partners was conducting due diligence in view of acquiring the commercial property.
The buyers are believed to be TE Capital Partners and LaSalle Investment Management. The former is a property investment company established by siblings Emilia and Terence Teo, who are members of the Teo family, which controls Tong Eng Group.
As for LaSalle Investment Management, it is a real estate investment management firm and an independent unit of property consultancy Jones Lang LaSalle (JLL).
Located 140 Cecil Street, the 17-storey PIL Building is understood to have been divested for slightly under S$325 million or roughly S$1,900 psf per plot ratio (psf ppr) based on its gross floor area (GFA) of 218,447 sq ft. The selling price already includes the top-up premium and development charge.
The freehold asset is expected to be redeveloped into a full commercial building. C&W is said to have negotiated the deal, while Dentons Rodyk is understood to be the lawyer representing the acquirer. The transaction is expected to be concluded during the first quarter of next year.
Shaun Poh, C&W’s Executive Director and Head of capital markets, commented that he expects interest in Singapore office buildings to remain robust among family offices and investors.
“The sweet spot is commercial buildings sitting on 999-year or freehold sites, and these are mainly available along Cecil Street and Robinson Road.” 10 years ago, these commercial properties were typically trading for between S$100 million and S$200 million. Today, the prices are closer to S$300 million.
While these commercial properties may have a smaller footprint, they provide an opportunity for the new owners to reposition the asset. Apart from securing naming rights, the new owners may add value via additions and alterations, he added.