CapitaLand Integrated Commercial Trust JV Buys 79 Robinson Road Office Tower
SINGAPORE – CapitaLand Integrated Commercial Trust (CICT) and CapitaLand Open End Real Estate Fund (COREF), a newly created discretionary fund overseen by CapitaLand Investment Limited (CLI) has agreed to purchase 79 Robinson Road, a Grade A office building in Tanjong Pagar within the city-state’s central business district (CBD), according to filings published on the Singapore Exchange (SGX) on Friday evening (25 March, SGT).
In particular, CICT and COREF are respectively buying a 70 percent and 30 percent stake in Southernwood Property Pte Ltd (SWP), the holding company that fully owns the commercial property.
“CICT is pleased to acquire a significant interest in 79 Robinson Road, a new Grade A office building with premium specifications and notable green achievements that appeal to increasingly sustainability-minded tenants,” said Tony Tan, Chief Executive of CICT’s manager.
The sellers are CapitaLand Investment Limited (CLI), which owns a 65 percent interest in SWP, while Mitsui & Co., Ltd. and Tokyo Tatemono Co., Ltd. own the remaining 35 percent.
79 Robinson Road is a 29-storey office tower with ancillary retail. It has a net lettable area (NLA) of 519,949 sq ft, of which 514,950 sq ft consists of office space, while 4,999 sq ft are retail premises. The commercial property also has a net property income (NPI) yield of 4.0 percent as of January 2022. It is being acquired for a total of S$1.26 billion (S$2,423 psf).
As of 31 December 2021, the commercial property has a committed occupancy of 92.9 percent. In total, it has 22 tenants. The top three, which account for about 48 percent of gross rental income, are insurance firm Allianz, financial services provider Equinix Asia Pacific, and The Boston Consulting Group, a multinational management consulting company.
Aside from that, CapitaLand Development’s flexible workspace division Bridge+ operates 56,000 sq ft of coworking space in the premises that can be accessed by tenants in the building. It will also have a future underground pedestrian network connected to the Tanjong Pagar MRT Station.
The commercial property stands on a site with a 99-year leasehold tenure with effect from 10 January 1968, and the primary building obtained its temporary occupancy permit (TOP) on 28 April 2020.
The acquisition of 79 Robinson Road is expected to be completed in Q2 2022.