IN WHAT is shaping up to be the most expensive office deal this year, Tuan Sing Holdings has entered into a sale and purchase agreement with Robinson Point (Cayman) Limited to acquire Robinson Point for $348.9 million.
Based on the acquisition price, this works out to $2,579.5 psf on existing net lettable area (NLA).
The seller, Sun Venture, had in fact clinched the 21-storey freehold commercial building from US-based AEW in a deal which valued the asset at $284 million, in July last year.
According to data provided by Cushman & Wakefield, this was the most expensive en bloc, single asset purchase on a per square foot basis last year.
The acquisition, which will see Tuan Sing acquire the entire issued share capital of Robinson Point Limited which legally and beneficially holds the entire issued share capital of 39 Robinson Road Pte Ltd, is based on the adjusted consolidated net asset value of the target companies.
This comes up to about $346.3 million after taking into account the agreed value of Robinson Point and adding back balances of a related bank loan and shareholder's loans as at April 30.
A sum of $30.05 million has been paid as a deposit for the share acquisition.
Under the terms of the sales and purchase agreement, the vendor is to settle all outstanding bank loans and shareholder's loans.
As at June 26, Robinson Point was valued at $350 million by Colliers International Consultancy and Valuation.
The building, which has total gross floor area of about 169,250 sq ft and NLA of about 135,270 sq ft, is currently fully rented to third party tenants with durations of mainly three years.
According to Tuan Sing, the share acquisition is in line with the company's strategy of expanding its core property business and securing recurring income business.
The company is waiting for the completion of the deal - targeted for end-September - before deciding whether or not to embark on asset enhancement works, said Tuan Sing yesterday.
"We intend to hold this asset for long-term share value appreciation purposes," said the company.
The share acquisition will be funded mainly by bank borrowings.
Tuan Sing is an investment holding company with interest in multiple industries particularly in the areas of property development, property investment and hotel ownership.
In April, the group reported first quarter revenue of $64.9 million and net profit attributable to shareholders of $5.8 million. Net asset value per share was 62.2 cents at March 31.
Tuan Sing shares ended trading yesterday unchanged at 34 cents.
Source: Business Times, 27 Jun 2013
Tuan Sing forks out $349m for Robinson Point
DEVELOPER Tuan Sing Holdings is buying a Central Business District commercial building, Robinson Point, for $348.9 million.
The company said the freehold 21-storey building, at 39, Robinson Road, would provide it with stable rental income.
The building, about 15 years old, has a net lettable area of about 135,720 sq ft and a gross floor area of about 169,250 sq ft.
Based on the net lettable area, the purchase price translates into $2,571 per sq ft (psf).
Colliers International conducted a valuation of the property, concluding it had an open market value of $350 million as at yesterday. Tuan Sing will buy the building mainly with bank borrowings, by buying a company which owns Robinson Point, called Robinson Point (Cayman).
Tuan Sing said the acquisition is in line with its "strategy of expanding its core property business and securing recurring income business". The asset is expected to generate a stable rental income stream.
Last July, Sun Venture bought Robinson Point from a real estate fund managed by US-based AEW, in a deal that valued the asset at $284 million or about $2,132 psf based on net lettable area.
Before that, office real estate investment trust CapitaCommercial Trust, partly owned by CapitaLand, sold Robinson Point to the private fund for $203.3 million in 2010.
The building is fully rented to third-party tenants, with durations of mainly three years.
Tuan Sing has been on the acquisition trail of late.
Earlier this month, the developer bought Gilstead Court in the exclusive Novena-Newton area for $150.2 million, or $1,292 per sq ft per plot ratio.
The site is 75,479 sq ft, with a plot ratio of 1.4.
Tuan Sing's wholly owned unit Dillenia Land was awarded the tender for the property in a collective sale.
Source: Straits Times, 27 Jun 2013