Office buildings in Singapore’s Central Business District (CBD) are in hot demand, with Robinson Road seemingly the busiest street.
For instance, 108 Robinson Road, formerly GMG Building, is now on the market with a price tag of S$110 million or S$2,000 to S$2,100 psf, based on the strata floor area. The sale by expression of interest for the 12-storey office building, which underwent refurbishment two years ago, closed on 16 December. Sources said at least four parties had expressed interest in the property.
“The new owner can wait for capital values to appreciate and exit via strata whole floor sales like at One Finlayson Green,” said a source. The building at 108 Robinson Road has already been sub-divided into strata-titled floors.
One Finlayson Green, a 19-storey freehold office building located next to the entrance of Raffles Place MRT station, is now back on the market for a whole floor strata sale at an average price of S$2,400 to S$2,800 psf. It was acquired by private equity fund Lucrum Capital in March 2010 for S$145 million or S$1,630 psf, based on net lettable area (NLA). The property is said to have received strong interest from business occupiers and investors, considering its location and prestigious address.
Meanwhile, the 14-storey office building, 112 Robinson, is also on the market, at an indicative price of S$175 million or S$1,900 psf, based on NLA.
“Many investors are focused on the CBD at present,” said Chris Archibold, International Director, Head of Markets, at Jones Lang LaSalle (JLL). “The majority of transactions we are seeing are either older Grade B or Grade C buildings for residential conversion, or core prime Grade A assets.”
Source: Commercial Guru
