PIL Building Sold For Undisclosed Amount
SINGAPORE – Dragon Peak Ltd, a joint venture (JV) firm comprising two funds overseen by TE Capital Partners and LaSalle Investment Management, has concluded the purchase of the PIL Building at Cecil Street, reported The Business Times on Tuesday evening (15 February, SGT).
The JV partners intend to redevelop the commercial property into a Grade A office building with Green Mark Platinum Certification. This is on top of having high floor-to-ceiling height of 4.9m and efficient floor plates that allow ample flexibility for single or multi-tenant usage.
According to a statement to the media published on Tuesday, the JV said this “synergistic tie-up,” which marks the maiden partnership between both firms, is proof that both managers are bullish on Singapore’s office market.
“We have seen increasing office demand in Singapore’s central business district (CBD) from the technology and financial services tenants and are expecting a moderate level of new supply coming into the market in the next few years,” said Emilia Teo, Managing Director of TE Capital Partners, which will be responsible for managing the asset.
Meanwhile, LaSalle Investment Management’s Co-Chief Investment Officer Claire Tang said PIL Building is a “welcome addition” to their portfolio amid rising participation from global institutional investors in the city-state’s office market, as well as continued occupier demand from multinational financial institutions and tech firms during the COVID-19 pandemic.
Both firms added that Singapore has a solid reputation as a resilient and stable real estate market, with an excellent track record for mid- to long-term capital value growth and preservation.
“It has performed well during the pandemic and stands out as one of the most preferred office investment destinations in the region,” they pointed out.
Situated along 140 Cecil Street, the PIL Building is a 17-storey office tower that stands on site measuring about 19,536 sq ft.
In July 2020, it was reported that the commercial property was put up for sale via an expression of interest (EOI) exercise, which was participated by eight parties
PIL Building’s indicative price was set at S$350 million, which translates to roughly S$3,265 psf based on its existing net lettable area (NLA) of almost 107,200 sq ft. The building was finished almost four decades ago but underwent a significant renovation in 2011.