Two freehold office blocks sold for $225m

The office investment sales market continues to see good activity, with two freehold office blocks — The Corporate Building and 112 Robinson Road — being sold for $57 million and $168 million respectively.

The sale price for 112 Robinson Road works out to $1,822 psf based on its net lettable area (NLA) of 92,205 sq ft.

CB Richard Ellis (CBRE) brokered the sale after an expression of interest (EOI) exercise, which closed in December.

Grace Global, the Singapore branch of an Indonesian family, is acquiring the property for long term investment from a Credit Suisse managed fund.

The building has an existing gross floor area of around 115,000 sq ft, which reflects a plot ratio of about 11.8, exceeding the 11.2 assigned for the 9,780 sq ft site under Master Plan 2008. It is believed to be around 90 percent let, with tenants including India's Jet Airways and Saxon Financials.

It is said that the net yield on the purchase price of Grace Global is just above three percent. The EIO for the 14-storey freehold office block, which has three ground floor shop units and five car park lots, is thought to have been strongly contested.

"The office market is enjoying a powerful recovery with rents and prices rebounding from their low points in 2010 and investors are actively looking for office investment deals," said Jeremy Lake, executive director of investment properties at CBRE.

Meanwhile, the sale price of The Corporate Building, the latest acquisition of Oxley Holdings, works out to around $2,789 psf on existing NLA.

DTZ is said to be brokering the sale of the property being sold by listed property giant City Developments, which also sold The Corporate Office to Oxley in 2010.

Source: Yahoo, 11 Jan 2011