Requirement

NOEL Gifts, a listed company specialising in gifts and hampers, was selling their corporate building to redirect resources tied down by the property to focus on their core business. Colliers was appointed to achieve the highest possible price for the client’s property.

Challenge

During that period, Ascendas-Reit (A-reit), a real estate investment trust had expressed interest in acquiring the property. However, the price that was offered fell below the expectation of NOEL’s board of directors. Colliers’ challenge was to structure a deal that would meet the objectives of the seller and the buyer. 

Service

Colliers carried out a cash flow analysis by evaluating factors such as the lettable area, rentals and expenses. Various scenarios were considered to generate the most reasonable and favourable output and a best possible price was attained. Colliers’ had to convince the board of directors and A-reit that the final price was fair and reasonable.  

Result

Colliers successfully convinced A-reit to raise their offer price to $28.6 million, which met the expectation of the board.

NOEL has offloaded the property at a good price and redirected the resources to the core business while A-reit managed to acquire another quality building under its portfolio.

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