Wilkie Edge Office & Retail Space Acquired For Almost S$350mil
SINGAPORE – The office and retail space at Wilkie Edge is said to have been purchased by Keppel Capital from a joint venture comprising Lian Beng Group and Apricot Capital for nearly S$350 million, reported The Business Times on Thursday evening (9 November, SGT).
It is understood that the selling price translates to more than S$2,200 psf based on the commercial property’s net lettable area (NLA) of around 154,500 sq ft that mostly consist of office space. Based on market chatter, the selling price works out to a net yield of around 3 percent.
Previously, the Lian Beng Group and Apricot Capital joint venture acquired the asset from CapitaLand Commercial Trust (CCT) for S$280 million in 2017. The joint venture subsequently implemented minor renovations. Market watchers also expect Keppel Capital to carry out asset enhancement initiatives (AEI) to improve the commercial property.
The 12-storey complex in Selegie consists not only of the office and retail space owned by the joint venture, but also a 154-unit serviced residence/hotel called Citadines Mount Sophia, which is presently leased to CapitaLand Ascott Trust for the remainder of the site’s leasehold tenure: around 81 years ending on 20 February 2105.
Keppel Capital, Keppel Corporation’s asset management division, is expected to take over the existing rights and obligations arising from the lease just like what happened when the joint venture bought the asset in 2017.
The office space and retail premises in Wilkie Edge are nearly fully occupied. Major tenants include Stone Forest and Kaplan. Real estate consultancy CBRE is also believed to have negotiated the sale of Wilkie Edge’s office and retail space via a private treaty.
Wilkie Edge was constructed on the former site of Selegie Complex by developer CapitaLand. Selegie Complex was part of the portfolio of the Pidemco Land, which merged with DBS Land to form CapitaLand in 2000. In 2008, CapitaLand sold Wilkie Edge to CapitaLand Commercial Trust, which combined with CapitaLand Mall Trust (CMT) to form CapitaLand Integrated Commercial Trust in 2020.