Twenty Anson Office Bldg Being Acquired

Singapore’s Twenty Anson Office Bldg Being Acquired For Almost S$600mil

SINGAPORE – Sources revealed that a company backed by private equity group KKR is purchasing the Twenty Anson, a 20-storey office tower in Singapore’s Tanjong Pagar area, for almost S$600 million from AEW, reported The Business Times on Friday morning (1 April, SGT).

The selling price translates to roughly S$2,900 psf based on the commercial property’s net leasable area (NLA) of 206,200 sq ft. Twenty Anson is close to the Tanjong Pagar MRT Station. Completed in 2009, it stands on a 27,281 sq ft site with a remaining leasehold tenure of around 84.5 years.

Market observers highlighted that the acquisition represents US-based KKR’s first direct property investment in Singapore. CBRE is understood to have brokered the deal.

Given that Twenty Anson has an untapped gross floor area (GFA) of nearly 34,400 sq ft, there is potential to increase the current GFA of 252,070 sq ft by nearly 14 percent. Under the 2019 Master Plan, its site is zoned for commercial use with a 10.5 plot ratio, which permits a maximum GFA of about 286,450 sq ft.

Moreover, market observers are anticipating a vibrant year for Singapore’s office investment market, partly driven by robust demand for office space and their limited stock, in addition to the country’s sustained economic expansion.

These factors have resulted in keen interest from institutional investors, high-net-worth individuals (HNWIs), and family offices, which are acquiring office assets here, including strata-titled ones.

In 2021, about S$5.15 billion office properties changed hands in Singapore, according to statistics compiled by Jones Lang LaSalle (JLL). The figure covers sales costing at least S$5 million and projects where at least 80 percent comprises office space.

For 2020, office sales reached S$2.26 billion, down from S$7.60 billion in 2019 before the COVID-19 pandemic.

Office properties presently available on the market are Robinson 77, which has a guide price of nearly S$900 million or around S$2,920 psf based on its existing NLA. Also in the market is Lazada One at 51 Bras Basah Road.

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