77 Robinson Road is a 35-storey commercial building located in the Central Business District (CBD) in Singapore.
SEB Investment GmbH has mandated International property consultant Colliers International with the sale – by Expression of Interest – of 77 Robinson Road, a 35-storey commercial building located in the Central Business District (CBD) in Singapore.
Interested parties are invited to submit their offer to Colliers International by August 3, 2011, at 4 pm.
77 Robinson Road sits on a 32,435 sq ft site which holds a 99 year leasehold tenure w.e.f. 18 February 1994. Under the 2008 Master Plan, the subject site is zoned for “Commercial” use, with an allowable plot ratio of 11.2+.
The office building has a total gross floor area of 380,999 sq ft and a net lettable area of 294,895 sq ft.
It is currently 92 per cent leased to multinational corporation tenants including Adidas, Dentsu, Rabobank Group, Royal & Sun Alliance Insurance, among others.
Ms Tang Wei Leng (邓慧玲), Executive Director for Investment Services at Colliers International, says, “The office property market is forecast to remain buoyant, with strong demand from tenants and investors. The most recent office sales transaction was Capital Square at a sale price of S$889 million or S$2,300 per sq ft. Given that there are only a few investment-grade office buildings available for sale in the market, 77 Robinson Road provides investors with the rare opportunity to acquire a sophisticated commercial building located in the heart of Singapore’s CBD.
With Grade A office rents currently 45.7 per cent below the previous peak in 1Q 2008, it is predicted that rents for the whole of 2011 will continue to enjoy an expansionary mode, supporting a 15-20 per cent growth.”
Ms Tang continues, “We are confident in receiving keen interest from both local and foreign institutional investors, as most of them are still on an active lookout for quality office stock in the market, particularly for those that are conveniently accessible to transportation nodes, such as the subject property. In fact, the neighbouring 71 Robinson Road achieved the highest unit price of S$3,125 per sq ft among the several CBD office building transactions in recent years.
What is encouraging for institutional investors is that net yields for office investment sales in the CBD are between 2.5 per cent and 4 per cent in the period of January to May 2011.”
Ms Tang adds, “An appealing feature of 77 Robinson Road is its multi-level car park comprising 180 lots, which gives it one of the highest car park allocation per sq ft leased at 1:1,638 sq ft. This is compared to the common ratio of 1:2,500 sq ft for most office buildings in the CBD. Given the tight supply crunch in car park space in the CBD, a high car park ratio such as that provided by the subject property, is becoming increasingly important in attracting tenants.”
77 Robinson Road is within a short walk to Raffles Place and Tanjong Pagar MRT stations. Other surrounding landmark commercial developments include 8 Shenton Way, 71 Robinson Road and Capital Tower, among others.