Singapore’s SLB Development Buys Melbourne Office Bldg

Singapore’s SLB Development Buys Melbourne Office Bldg For A$35.5mil

AUSTRALIA – SLB Development, a diversified real estate developer listed in Singapore, is purchasing a pair of commercial buildings in the city-state and an office building in Australia, according to a Singapore Exchange (SGX) filing published last week.

Via a wholly-owned unit, the developer is buying a pair of commercial buildings at 30 and 31 North Canal Road in Singapore with a combined net lettable area (NLA) of 11,464 sq ft and overall land area of 3,207.64 sq ft. The transaction is posited to be completed on 23 June 2022.

The commercial properties are strategically situated on the north-eastern side of North Canal Road. Apart from being 0.5 km from Singapore’s city centre, the assets are close to MRT stations like Clark Quay, Chinatown, and Raffles Place.

In Melbourne’s central business district (CBD), SLB Development has signed a deal to buy a 12-storey office building at 225 King Street for A$35.5 million. However, the transaction is subject to obtaining approval from the Australian Foreign Investment Review Board (FIRB).

With an NLA of 67,663 sq ft, the commercial property is within proximity to public transport networks like Lonsdale Street buses, Southern Cross, Melbourne Central, and Flagstaff Train Stations, and multiple surrounding tram services. The deal is scheduled to be concluded within 90 days from 31 May 2022.

“We are pleased to have continued to make good progress in diversifying our short–term recurring income stream – both by asset portfolio, and by geographic base. Apart from the ‘living sectors’ segment, we have also extended our reach in the office space in these latest acquisitions in both Singapore and Australia,” commented SLB’s Executive Director and Chief Executive Matthew Ong.

He shared that they plan to rejuvenate and uplift overall tenant experience at the two office properties via green and sustainable repositioning. This is to achieve positive rental reversions in near terms, while SLB Development waits for suitable market conditions for redevelopment or divestment.

225 King Street represents SLB’s second project in Melbourne, following the consolidation of SLB’s office and retail podiums at 235 Bourke Street with its joint venture (JV) partners.

Moreover, Ong said it’s a rare opportunity for the developer to secure a major CBD building with significant value add/repositioning or owner occupation potential. SLB also reaffirms its confidence in both Singapore and Australia’s office markets.

“We are confident in the robust fundamentals that Melbourne’s CBD office market offers in the medium to long term, and firmly believe that this asset will benefit from the enhancement of the immediate precinct in the future. In Singapore, with reopening, we will tap on the ‘return to office’ trend; as well as strong potential demand for serviced residences, given Singapore’s strategic position as a financial hub to attract global talents,” he added.

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