Sun Venture In Due Diligence To Buy Bugis Junction Towers

Sun Venture In Due Diligence To Buy Bugis Junction Towers For Over S$675mil

SINGAPORE – Sun Venture Group is said to be conducting exclusive due diligence in line with its plan to purchase the Bugis Junction Towers for S$675 million to S$680 million, reported The Business Times on Wednesday morning (29 June, SGT).

The selling price translates to nearly S$2,720 psf based on the 248,853 sq ft net leasable area (NLA) of the 15-Storey Grade A office building directly situated above the Bugis MRT Interchange.

Market watchers reckon that the net yield for the commercial property acquisition could come at 3.0 percent. At present, the office tower is 94 percent occupied, with monthly rents of existing leases averaging at slightly more than S$8 psf. The asset’s anchor tenant is Enterprise Singapore, a statutory board under the Ministry of Trade and Industry (MTI).

Bugis Junction Towers forms part of a mixed-use project, which also includes the Bugis Junction shopping centre and InterContinental Singapore. Aside from that, the development’s land has a remaining leasehold tenure of roughly 67 years.

Its office component is held by a consortium that purchased the commercial property for S$547.5 million in late-2019. Earlier this month, the group also completed a S$10 million revamp of the building’s lobbies, lift interiors, and lower façade.

In the consortium, US-based private equity group Angelo Gordon has a dominant position, while Singapore-based TCRE Partners holds a minority interest. Also, real estate consultancy Cushman & Wakefield (C&W) has been marketing the property for sale via private treaty.

Meanwhile, The Business Times reported recently that Sun Venture Group plans to dispose Westgate Tower, an office building close to the Jurong East MRT station, for around S$675 million.

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